A General Partnership Company (GPC) in the UAE is made up of two or more UAE nationals as partners who are all jointly and severally responsible for its profit or loss incurred. The partners then become owners who are equally eligible to participate in its management and control. They are also liable for its debts and legal action – either personally, created by agreement, proof of existence and estoppel (a third party’s right to arbitrate in the company’s matter as delegated by a manager and as documented in the party’s Power of Attorney).
A partnership agreement must be created that will outline in detail the profit-sharing arrangement between the partners.
In the eventuality of death, insanity, bankruptcy or withdrawal of any partner, the partnership must be dissolved. A fresh partnership agreement must be created among the remaining partners who would like to continue and any new partner(s) who are added now.
While all the partners must be UAE nationals, the executive team and managers can be non-UAE nationals.
General note: There may be slight variations in the Terms & Conditions for setting up the company in Dubai, as against rest of UAE. Please consult CSU for more details.