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What exactly is so cool about a national that he has to sit on the head of a expact businessman at all times.

Is he going to invest. No, only in the conditions where he gets the most money.

Is he going to work. Hell no.

plz. read on

LLC firms to face stiff penalties
BY ISAAC JOHN (Chief Business Reporter)

4 April 2006


DUBAI — Some 80 per cent of the limited liability companies (LLC) operating in the UAE will have to regularise their investment and profit sharing ratio in line with the 51:49 shareholding pattern stipulated by the existing Commercial Companies Law (CCL) before November 2007 to ward off stiff penalties including fine and imprisonment.

According to legal experts, as per the law No17. 2004, if the LLC operation violates the prevailing CCL rules, both partners — nationals and expatriates — shall be punished. The law, promulgated in November 2004, but suspended for three years, will come into effect on November 1, 2007 unless the new Company Law, now in the final stage of draft, comes out with more clear and pragmatic rules that will replace the Law no 17.2004

"This law, which also nullifies all the side agreements which are normally entered into by the UAE national and the expatriate partner to safeguard their mutual interests, stipulates a fine not exceeding Dh100,000 for a first-time violation, and if repeated, besides the fine, the national partner faces up to two years' imprisonment while the expatriate will be jailed and deported after the fulfilment of his obligations. The law also stipulates that the licence of such nationals found guilty of violation will be cancelled. The national partner will also be banned from doing the same activity for a period not less than two years and not more than five years from the date of judgment," said K.K. Sarachandra Bose, a lawyer with Dar Al Adalah.

Legal experts said the law at its current form would have far-reaching implications on the business and trade environment. At present, a side agreement is normally implemented to regulate the relationship between the national and expatriate partners. It also helps the LLC partners to circumvent the 51:49 rule of investment and profit sharing.

The long-awaited new Company Law is almost ready and this will go to all concerned parties for their concurrence before it is approved by the Cabinet. Currently, the draft of the laws are being reviewed by associations including the private sector to get their views before enactment by the federal government. It is learnt that the new laws will be more flexible and will in some cases permit companies to be more than 49 per cent foreign owned.

Under the existing Commercial Companies Law or CCL (Federal Law No. 8 of 1984 Concerning Commercial Companies as amended by Federal Law No 13 of 1988, Federal Law No. 15 of 1998), foreign investors are permitted to hold up to 49 per cent equity ownership in UAE companies, 51 per cent of the equity must be held at all times by one or more UAE nationals. The LLC requires a minimum of two and a maximum of 50 members and minimum capitalisation of Dh150,000 in all emirates except Dubai where the requirement is Dh300,000. Management of the LLC is vested in the ‘managers’ who may or may not be UAE nationals.


--source

http://www.khaleejtimes.com/DisplayArti ... n=business

jason wrote:What exactly is so cool about a national that he has to sit on the head of a expact businessman at all times.

Is he going to invest. No, only in the conditions where he gets the most money.

Is he going to work. Hell no.

I remember you.

You are that guy who works at the university in Sharjah... The janitor, I beleive....

You know this is the rule of this country to protect its national interests. Many countries have such policies.

Nothing is "cool" about this rule at all. You stinging racism is quite offensive I must add.

If you are not happy with the investment climate of the UAE then, please, do not invest here....

Liban , care to name any non-arab countries that have 'such policies' as you state in your post ?

it would be interesting to see how the UAE can join the WTO with such policies...

the 'other' countries do not have the same ratio of nationalities dubai has, the % of nationals in dubai is a small number and if it wasnt for these rules they'd be leading a terrible life, but other countries are mostly filled with its nationals so they dont need the laws.

Fawlty Adder wrote:Liban , care to name any non-arab countries that have 'such policies' as you state in your post ?

it would be interesting to see how the UAE can join the WTO with such policies...

The US and Israel to name two...

Fawlty Adder wrote:Liban , care to name any non-arab countries that have 'such policies' as you state in your post ?

Malaysia and Indonesia both have localization recruitment policies.

[quote="jason"]What exactly is so cool about a national that he has to sit on the head of a expact businessman at all times.

Is he going to invest. No, only in the conditions where he gets the most money.

Is he going to work. Hell no.


well what is the point here .is it the new law or its about the locals who seems u dnt like ..
as liban said befor if u dnt like it dnt buy it or dnt invest ..easy why u make it harder and be racist .and who told u that locals dnt work ..we do work our @ss all day long .have a good fay Mr

If you have proper legal advice you can set up efficient and perfectly legal structures that will permit appropriate allocations of reward for risk. For example there is no law against contracting with an offshore entity for services with the offshore entity earning a healthy profit on its services delivered.

dude..its thier country...they deserve ittt. ..
u can hav the same services bacck homee ..

I realy can't see why all these complains are being added every day !!

if you don't like what you see the MOVE ON people LEAVE the country
we never neede you and will never do !! hellooo

as a matter of fact ask and see how much moeny is being transferd every month from this county to others and you will know that we are locals and our country is putting food on your poor ass family table ,, yaa thas right and YOU ARE WELLCOME

see yaa

Actually, it is usually the odd local who joins this forum and digs up these ancient threads that is the problem. This was a crap thread that should have died a long time ago yet it keeps getting revived. You have been here only two seconds so have no clue that the guy who started this thread was a wind-up merchant who isn't even on this forum anymore. Chill out and stop taking things so personally. Not everyone is against locals, obviously!

Fire fingers, I'd like to see you out on the scaffolding / construction sites on 50 degrees days building 'your country' - good luck to you.

K, fully agree - dead thread. Access denied.