A local company can be a very important partner for a foreign company who wants to extend its activity in another area. Therefore many investors in Dubai decided to create joint ventures which require no special license or notarization. The procedure of establishing a joint venture in Dubai requires sometimes the legal counseling and support from a local law firm. Our Dubai attorneys are at your disposal with complete information and legal support in this matter.
How to create a joint venture in Dubai
One of the first key steps which must be performed is to define very clearly the needs of your company. Accordingly, you will be able to find a complementary business partner capable to offer a sustainable contribution for a long-term business development in Dubai.
You must then agree with your partner on the distribution of profits and losses and to decide on the equity participation. The authorities require that the local ownership in the joint venture in Dubai should be at least 51% of the shares of the company.
Further on, our attorneys in Dubai can help you with the basics for the organization of a suitable structure and with elaborating all necessary documents required by the authorities. Thus you can benefit from a professional support in the creation of the joint venture in Dubai.
We have prepared a video about how to set up a joint venture in Dubai, with support offered by our lawyers in Dubai:
Reasons to create a joint venture in Dubai
Many companies who extend their activity in a new region rely on a joint venture in order to optimize the start. By finding the right partner, both businesses have the chance of a more effective growth and higher profits. By creating a joint venture in Dubai, you can benefit from the local staff and technology which will increase your business performance. There are many reasons to invest in Dubai, and even if it is a foreign place for you, the local contribution coming from your partner is going to be extremely helpful by giving your company increased access to the new market.
The fact that you can share the risks with your local partner belongs to the risk minimisation policy that you already included in the management of your company. Engaging in a joint venture, especially when you are entering a new market, is an effective precaution that you can take so that you can lead your business in a safer context. Another advantage is that the type of collaboration implied in a joint venture is a very flexible one, both concerning the duration of the partnership and the amount of contribution and commitment that each part must bring in specific business areas.
Feel free to contact our law firm in Dubai for legal support regarding the creation of a joint venture in Dubai.
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