The United Arab Emirates has the best business ambiance in the world.
Since the country offers numerous business opportunities, investors and entrepreneurs prefer establishing their businesses in the Emirates States. Most startup owners choose to start their venture in the free zones for 100% ownership. But not every entrepreneur can invest their money initially. This is where the need for business partners emerges.
One can have a great idea but lack the funds to implement it. Conversely, some entrepreneurs have cash but no clear vision. It is important to have a trustworthy partner on board who is willing to invest in your vision and believes in your strategy. If you have a good idea, the business partners/ investors will come after you to join them on the boat.
Searching for a true business partner in an ocean of corporations can be challenging, but having one will strengthen your business direction.
New entrepreneurs, especially those new to the country, find it difficult to connect with stakeholders. To gain an edge in the highly competitive UAE market, entrepreneurs looking to start a business must seek sponsorship.
What is the need for a Business Partner in the UAE or other Emirate States?
The term ‘partner’ refers to a person or organization that closely shares your vision and supports you or your business at every step. As this word symbolizes, partnering with stakeholders is always a smart move. This not only unlocks investment opportunities but also introduces new ideas, diverse perspectives, and inventive approaches to your business.
There could be numerous reasons why businesses should go for visionary partners. Apart from the investment purpose, new entrepreneurs seek a value-added perspective with their associates.
No one is perfect.
Every individual has a different mindset and work approach. A good business partner may help you bring networking and marketing expertise or unlock a door to various marketplaces. Moreover, onboarding a desired stakeholder can help boost your business growth while sharing skills, knowledge, and financial wisdom.
What does entering a business partnership in the UAE look like?
Partnering with shareholders can change your business structure. As we mentioned earlier, a partner from a different background can restructure your business visibility.
One can also choose to start a business with local partners for legal advantages. It is a good step to associate with local sponsors as they bring their expertise to the table. However, the UAE allows 100% foreign ownership at designated places, but you would need a partner at some of the business lands.
This, however, depends on the type of business activity and its requirements. Nonetheless, the local partner could also remain in a limited role, helping your firm with legal registration and other support services like licensing and visa documents.
Entrepreneurs should note a few things before partnering with stakeholders or sponsors. These are the important points in terms of the Memorandum of Understanding to take into consideration:
Ownership or equity split: Equity split is the first and most important part of a partnership deal. Business owners should communicate impartially with the sponsors about the company equity split. They must also explain their respective roles and responsibilities.
Financial understanding: Before partnering with the stakeholders, owners must agree on financial terms, such as salary withdrawals, profit and loss allocation, and investments in business growth.
Decision-making: Decision-making is also a crucial aspect to discuss before making partnerships. Both owners and stakeholders should align on the same line of business process, assignments, management, and other financial commitments.
Dispute management: Disputes and disagreements are a part of business. Your company may find it difficult to balance between two different opinions. Partners can not agree with the owner's decision. However, partners should have a strong contract to deal with any discrepancies.
Business Exit: What occurs if your partner wishes to leave the company or simply retire? In this scenario, the company's partnership agreement addresses the following issues:
-What will happen to his/her share and profit?
-Pending profits accruing to his or her family
-On-boarding of new partners and settlement
-Retirement clauses
-Changes in documentation
Best way to find business partners in the UAE 2025
The best way to discover a perfect business partner for your company is to hire business setup consultants. Business professionals can help your company grow in the United Arab Emirates. The best business partners promise that your firm is under control and has no legal flows.
If you are looking to set up a business in UAE, look nowhere but Markai Corporate Services. We help you find the best partner for your business and make your business in the world's most thriving business hub, the United Arab Emirates.
