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Commercial Companies
Joint-Liability Company
Joint-Liability Company Services in Abu Dhabi
A Joint-Liability Company is one of the types of commercial companies available in the United Arab Emirates. This company is characterized by being a cooperative form where it is formed by the collaboration of several individuals to achieve common goals. The shareholders in a Joint-Liability Company share the capital, financial liability, and administrative responsibilities of the company.
Key features of a Joint-Liability Company
Cooperation and Solidarity
This company relies on the principle of cooperation and solidarity among shareholders, who work together to achieve the company’s common objectives.
Shared Liability
Shareholders in a Joint-Liability Company share the responsibility for the obligations and debts arising from the company’s activities equally, regardless of their contribution to the capital.
Capital
The capital that each shareholder contributes is determined at the beginning of the company’s establishment, and profits and losses are distributed among the shareholders according to their shares in the capital.
Stability and Trust
The form of a Joint-Liability Company is considered stable and encourages building trust and collaborative work among shareholders.
Flexibility
This company is characterized by flexibility in determining the goals and business activities it seeks to achieve, allowing shareholders to choose the most suitable business model for their needs.
Non-Acquisition
No shareholder in a Joint-Liability Company has the right to acquire the shares of other shareholders, preserving the independence of each shareholder in their company.
At Abeer Al-Dahmani Advocates & Legal Consultancy, we understand the importance of a Joint-Liability Company and its positive impact on businesses. Therefore, we provide exceptional consultancy services to assist our clients in establishing and managing Joint-Liability Companies in compliance with the laws and regulations in the UAE.
Leveraging our extensive experience and knowledge of the laws, we help our clients choose the optimal business model for their companies and provide the necessary legal support to achieve the success of their business ventures.
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FAQ
Joint-Liability Company Services Frequently Asked Questions
What is a Joint-Liability Company, and what are its characteristics?
A Joint-Liability Company is a type of commercial company where several individuals collaborate to form the company and share the capital, financial liability, and administrative responsibilities. The shareholders in this type of company are personally and jointly liable for the company’s debts.
Can a single person establish a Joint-Liability Company?
Yes, a single person can establish a Joint-Liability Company, where they are the sole responsible for forming and owning the company and bear the financial and administrative liabilities.
What is the financial liability of the shareholders in a Joint-Liability Company?
In a Joint-Liability Company, the shareholders are personally and jointly liable for the company’s debts, meaning they bear personal responsibility for all the financial obligations of the company.
What is the minimum number of shareholders required in a Joint-Liability Company?
The minimum number of shareholders in a Joint-Liability Company depends on the local laws of each country. In some countries, a single person can establish a Joint-Liability Company, while in others, there may be a requirement for a specific number of shareholders.
What are the legal procedures required to establish a Joint-Liability Company?
To establish a Joint-Liability Company, one must follow the legal procedures specified by the relevant government authorities in the country. This includes determining the type of company, submitting the required documents, and paying the registration fees for the company.
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