Named partners, personal liability
Partnership registration creates a named legal form, not a handshake with a contract attached. The partners are named on the licence, the partnership contract is notarised, and in a general partnership each partner can be pursued personally for the whole of the firm's obligations. That last point is what separates it from a company.
Tell us who the partners are and what each one is putting in.
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People use these three words interchangeably and they are not interchangeable. Only one of them is a registered legal form with your name on a licence.
| What Matters | Partnership | Joint Venture | LLC |
|---|---|---|---|
| A registered legal form | Yes | Usually a contract | Yes |
| Partners named on the licence | Yes | Not necessarily | Shareholders, not partners |
| Personal liability for firm debts | Yes, for general partners | Per the contract | Limited to the company |
| Typical use | Professionals practising together | One project or venture | An operating business |
| Ends when a partner leaves | Often, unless agreed otherwise | At the end of the venture | No, shares transfer |
The contract does the work here. In a company the law supplies defaults; in a partnership what you wrote down is very close to the whole of the arrangement.
General partnership or one with limited partners, chosen on whether any investor needs to stay out of management and out of unlimited liability.
Who contributes what, whether in cash, assets or work, and how profits and losses are shared. Unequal contributions need saying out loud before filing.
Drafted and notarised, covering management, decision making, what happens on death or departure, and how a partner can be bought out.
Name reserved and initial approval obtained. Partnership names commonly carry partner names, which has consequences if someone leaves.
Registered premises and the trade licence naming the partners, issued by the economic department of your emirate.
Establishment card, visas and a corporate account with the signing arrangements the partners have agreed.
Settle the disagreements on paper first. A partnership contract is much easier to write while everyone still likes each other.
Contributions, profit shares, who manages, who can bind the firm and what happens if a partner wants out or dies.
General or limited, based on whether any partner needs liability protection and is prepared to stay out of running the business.
Trade name reserved and initial approval obtained with the partnership activities named correctly.
The partnership contract executed before a notary with the partners present or represented under power of attorney.
Premises registered, licence issued naming the partners, then establishment card, visas and banking arranged.
Write the exit terms before you write anything else. Most partnership disputes are not about profit while things go well, they are about what happens when one partner wants to leave and the contract is silent. The UAE government's business services overview sets out the wider framework, and partnerships are registered by the economic department of the emirate you set up in.
Tell us who the partners are, what each is contributing and how you want decisions made. We will come back with the form that fits, a contract that covers the departure nobody wants to discuss, and what the authority and we will each charge, in writing.
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