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1084 questions

Company Formation / Licensing

Do free zone companies need a local sponsor in the UAE?

Jun 26, 2026·1 answers
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No, free zone companies in the UAE have long allowed full foreign ownership and generally do not require a UAE national sponsor or local partner. Each free zone is governed by its own authority and rules, and one of the main attractions of free zones has historically been that foreign investors can own their company entirely within the zone. This contrasts with the older mainland model, although mainland activities have also become widely open to full foreign ownership following recent reforms to the Commercial Companies Law. Free zones suit many service, trading, and international businesses, but selling directly into the UAE mainland market from a free zone may involve a distributor or additional steps depending on the activity. Each zone sets its own licensing, office, and visa rules, so confirm the specifics with your chosen free zone authority. To understand which jurisdiction best fits your model and any cross-jurisdiction trading implications, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

How do I renew my trade licence in the UAE?

Jun 26, 2026·1 answers
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UAE trade licences are issued for a set period and must be renewed before they expire to keep the business operating legally. Renewal is handled by the authority that issued the licence: the emirate's economic department for mainland companies, or the relevant free zone authority for free zone companies. Renewal typically requires a valid tenancy contract (registered through Ejari for mainland Dubai companies), payment of the renewal and any associated costs, and confirmation that the company remains compliant; some activities may also require renewed external approvals. Letting a licence lapse can lead to penalties and complications with visas and bank accounts, so it is best to start the process ahead of the expiry date shown on the licence. The renewal costs, validity periods, and exact requirements are set by the issuing authority and should be confirmed at renewal time. For help resolving compliance issues or disputes that block a renewal, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

What licence do I need to start an e-commerce business in the UAE?

Jun 26, 2026·1 answers
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To run an e-commerce business legally in the UAE, you generally need a trade licence that covers online trading or e-commerce activity, issued either by the emirate's economic department on the mainland or by a free zone authority. Many emirates and free zones offer specific e-commerce or e-trader licence options, with the e-trader route in some emirates aimed at individuals selling through their own websites or social media. The correct licence depends on what you sell, whether you hold stock, and whether you sell into the mainland market or internationally. Some products and services are regulated and need additional approvals before you can sell them online. As with other businesses, you choose an activity, reserve a name, meet any premises requirements, and obtain the licence. Because e-commerce options and conditions vary by emirate and zone, confirm the right licence for your model with the licensing authority. For reviewing online terms, consumer-protection compliance, and supplier contracts, you can compare verified UAE legal professionals on LEXAI.

Company Formation / Licensing

Which authority issues trade licences in the UAE and in Dubai?

Jun 26, 2026·1 answers
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Trade licences in the UAE are issued at the emirate level by each emirate's economic department, not by a single nationwide body. In Dubai, the licensing authority is the Department of Economy and Tourism (DET, formerly the Department of Economic Development), while other emirates have their own departments of economic development, such as those in Abu Dhabi, Sharjah, and the remaining emirates. These authorities handle mainland company registration, trade-name approval, activity classification, and the trade licence itself, under the framework of the UAE Commercial Companies Law. If you set up inside a free zone, the licence is instead issued by that free zone's own authority rather than the emirate's economic department. Some regulated activities also require approval from a sector-specific federal or local authority before the licence is granted. Because the right authority depends on your jurisdiction and activity, confirm where to apply before you start. For help navigating approvals and choosing a jurisdiction, you can compare verified UAE legal professionals on LEXAI.

Construction

What is the Engineer's role in deciding contractor claims under FIDIC?

Jun 26, 2026·1 answers
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Under FIDIC contracts, the Engineer administers the contract and has a defined role in assessing the contractor's claims for time and money. When a claim is submitted, the Engineer is generally required to consult with both parties, review the supporting particulars, and make a fair determination of any extension of time or additional payment due, acting within the procedure and timeframes the contract specifies. The Engineer is appointed by the employer but, under the standard wording, must make determinations impartially and in accordance with the contract. If either party is dissatisfied with the Engineer's determination, the contract usually allows the matter to be escalated — to a dispute board, amicable settlement, and ultimately arbitration or the courts. In onshore UAE, the Engineer's decision is contractual and does not displace a party's right to have the dispute finally decided by the agreed forum under UAE law. Review the exact claims clause in your FIDIC edition and the notice and particulars it requires. For help challenging or supporting an Engineer's determination, compare verified UAE construction professionals on LEXAI.

Construction

What is decennial liability for contractors and architects in the UAE?

Jun 26, 2026·1 answers
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Decennial liability is a mandatory protection under the UAE Civil Transactions Law that makes the contractor and the architect/supervising engineer jointly liable for ten years for total or partial collapse of a building, and for serious defects that threaten its structural safety and stability. 'Decennial' means ten years — this period runs from handover/delivery of the works and cannot be excluded or reduced by agreement, because it is a matter of public order under UAE law. It applies even if the defect arises from the ground itself or the employer approved the defective structures. Liability is focused on structural integrity rather than minor finishing defects. A claim must be brought within a defined period after the collapse or the discovery of the defect, so acting promptly once a problem appears is important — confirm the exact filing window for your case, as it is time-barred. Because this is a strong but technically specific remedy, an owner should obtain an engineering assessment and legal advice quickly. You can compare verified UAE construction-litigation professionals on LEXAI.

Construction

Can I sue a contractor for building defects in the UAE?

Jun 26, 2026·1 answers
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Yes. In the UAE you can pursue a contractor for building defects, and the route depends on the type of defect and your contract. For serious structural defects or collapse, the UAE Civil Transactions Law imposes mandatory decennial (ten-year) liability on the contractor and supervising engineer, which cannot be contracted out of. For non-structural or workmanship defects, your remedy usually flows from the contract's defects-liability/maintenance period and general contractual obligations, allowing you to require repair or claim the cost of making good. Practically, start by documenting the defects (photos, dates, an independent engineer's report), notify the contractor in writing, and check your contract's defects-liability provisions and any retention held. If the contractor does not remedy the defects, you can escalate to the dispute-resolution forum named in the contract — arbitration or the competent court. Time limits apply, so do not delay. Because defect claims turn on technical evidence and the correct legal basis, an engineering report plus legal advice is the strongest start. Compare verified UAE construction professionals on LEXAI for your situation.

Construction

What is the difference between resolving a construction dispute in Dubai Courts and DIFC Courts?

Jun 26, 2026·1 answers
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The key difference is jurisdiction and legal system. Dubai Courts (the onshore courts) apply UAE federal law, including the Civil Transactions Law, conduct proceedings primarily in Arabic, and handle disputes governed by onshore UAE law. The DIFC Courts are a separate common-law jurisdiction within the Dubai International Financial Centre, operate in English, apply DIFC laws and common-law principles, and hear matters connected to the DIFC or where parties have agreed to DIFC jurisdiction. Which forum applies to your construction dispute depends on where the project sits and what your contract's jurisdiction clause says — you generally cannot simply pick the one you prefer after the fact. ADGM Courts play a similar common-law role in Abu Dhabi. The choice affects language, procedure, governing law and how mandatory rules such as decennial liability are applied. Because these systems differ substantially, the wording of your jurisdiction or arbitration clause is decisive, so read it before assuming a forum. A UAE construction-disputes specialist can confirm the correct forum; compare verified professionals on LEXAI.

Construction

What happens if a UAE construction contract has no arbitration clause?

Jun 26, 2026·1 answers
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If a UAE construction contract contains no valid arbitration clause, the dispute is generally resolved by litigation before the competent national court rather than by arbitration. For an onshore project, that usually means the local courts of the relevant emirate — for example Dubai Courts or Abu Dhabi Courts — applying the UAE Civil Transactions Law and other federal legislation, with proceedings conducted primarily in Arabic. If the project or parties are connected to the DIFC or ADGM, those common-law courts may have jurisdiction instead. Arbitration in the UAE requires a written agreement to arbitrate; without one, neither party can be forced into arbitration, and a court will normally accept jurisdiction. The contract may still contain other relevant terms — such as a jurisdiction clause, a requirement to attempt amicable settlement first, or an Engineer/dispute-board step — which you should follow before filing. Identify the competent court, check any pre-action conditions, and gather your evidence. Because court procedure and language can be demanding, local representation helps. Compare verified UAE construction-litigation professionals on LEXAI.

Construction

How can a subcontractor recover unpaid amounts in the UAE?

Jun 26, 2026·1 answers
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A subcontractor's right to recover unpaid amounts in the UAE generally flows from its subcontract with the main contractor, not directly from the employer, because UAE law largely follows privity of contract — the subcontractor's counterparty is the main contractor. Start by confirming the amount is due and certified under the subcontract's payment terms, then issue a formal written demand recording the debt and any contractual interest. If the subcontract is 'pay-when-paid' or 'pay-when-certified', check how that clause affects timing, as it can delay (though not always indefinitely defeat) your entitlement. If payment is still not made, you can pursue the dispute through the subcontract's dispute-resolution route — arbitration if the subcontract contains an arbitration clause, otherwise the competent UAE court — and claim the outstanding sum plus any interest and costs the contract allows. Preserve invoices, certificates, delivery records and correspondence. Because recovery turns on the subcontract terms and good evidence, early advice improves your prospects. Compare verified UAE construction and debt-recovery professionals on LEXAI for your situation.

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