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Company Sale Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

Company Sale Contract

I need a Company Sale Contract for the sale of my Dubai-based tech startup to a local UAE company, with completion planned for March 2025. The transaction is straightforward with no external financing required.

Document background
The Company Sale Contract is a crucial document used in business acquisitions and corporate restructuring in the UAE. It serves as the primary agreement governing the transfer of company ownership, whether through share sale or asset purchase. This document must comply with UAE Federal Law No. 32 of 2021 and related regulations, including specific requirements for foreign ownership, free zone regulations where applicable, and necessary governmental approvals. The contract typically includes detailed provisions on purchase price, payment terms, warranties, indemnities, conditions precedent, and completion mechanics. It's essential for both local and international transactions involving UAE companies and requires careful consideration of local business practices, cultural aspects, and regulatory requirements.
Suggested Sections

1. Parties: Identification of the Seller(s) and Buyer(s), including full legal names and registration details as per UAE requirements

2. Background: Context of the transaction, description of the target company, and purpose of the agreement

3. Definitions and Interpretation: Key terms used throughout the agreement, including UAE-specific legal and business terms

4. Sale and Purchase: Core transaction terms including shares/assets being sold and purchase price

5. Consideration: Details of the purchase price, payment terms, and any adjustments

6. Conditions Precedent: Prerequisites to completion, including regulatory approvals and UAE-specific requirements

7. Pre-Completion Obligations: Parties' obligations between signing and completion, including conduct of business requirements

8. Completion: Mechanics of closing the transaction, including required documents and processes under UAE law

9. Warranties: Seller's warranties about the company, its assets, and compliance with UAE laws

10. Limitations on Liability: Scope and limitations of Seller's liability for warranty breaches and claims

11. Tax Matters: Allocation of tax liabilities and obligations under UAE tax laws

12. Confidentiality: Obligations regarding transaction confidentiality and company information

13. Announcements: Requirements for public announcements and regulatory disclosures

14. Further Assurance: Obligations to take additional steps to give effect to the transaction

15. Assignment: Restrictions on transfer of rights under the agreement

16. Notices: Process for formal communications between parties

17. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

18. General Provisions: Standard boilerplate clauses adapted for UAE law

19. Execution: Signature blocks meeting UAE execution requirements

Optional Sections

1. Non-Competition: Restrictions on Seller's future business activities - include when Seller could compete with the business

2. Employee Matters: Specific provisions for employee transfers and protection - include when employees are key to the business

3. Intellectual Property: Special provisions for IP transfer and protection - include when IP is a significant business asset

4. Real Estate: Property transfer provisions - include when company owns/leases significant real estate

5. Environmental Matters: Environmental warranties and indemnities - include for manufacturing or industrial businesses

6. Free Zone Requirements: Specific provisions for free zone compliance - include for free zone companies

7. Earn-out Provisions: Future performance-based payments - include when part of purchase price is contingent on future performance

8. Transitional Services: Post-completion service arrangements - include when Seller's ongoing support is needed

9. Bank Financing: Provisions relating to third-party financing - include when purchase is externally financed

Suggested Schedules

1. Company Details: Complete corporate information, shareholding structure, and regulatory licenses

2. Properties: Details of owned and leased real estate assets

3. Intellectual Property: List of IP rights, registrations, and licenses

4. Material Contracts: Key business agreements and commitments

5. Employee Information: List of employees, their terms, and benefits

6. Bank Accounts: Company's banking arrangements and facilities

7. Completion Requirements: Detailed closing checklist and required documents

8. Warranties: Detailed warranties about the business and assets

9. Disclosed Matters: Exceptions and qualifications to warranties

10. Form of Transfer Instruments: Templates for share transfer and other transfer documents

11. Data Room Index: Index of due diligence materials provided

12. Purchase Price Adjustments: Detailed mechanisms for price adjustments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses









































Relevant Industries

Manufacturing

Technology

Retail

Real Estate

Healthcare

Professional Services

Financial Services

Construction

Hospitality

Energy

Logistics

E-commerce

Media and Entertainment

Education

Trading

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Risk Management

Executive Leadership

Business Development

Strategy

Tax

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

General Counsel

Legal Director

Corporate Lawyer

M&A Lawyer

Finance Director

Business Development Director

Company Secretary

Compliance Officer

Risk Manager

Investment Manager

Commercial Director

Strategy Director

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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