Document background
The Co-Founder Partnership Agreement is a critical legal document used when two or more individuals decide to establish a business venture together in the United Arab Emirates. This agreement serves as the foundational document that governs the relationship between co-founders and sets clear expectations regarding their rights, responsibilities, and obligations. It is particularly important in the UAE business context, where specific legal requirements must be met under the Federal Commercial Companies Law and related regulations. The document typically covers essential aspects such as equity distribution, capital contributions, management rights, profit sharing, intellectual property ownership, and exit provisions. It also addresses UAE-specific considerations such as foreign ownership restrictions, local partner requirements (if applicable), and compliance with UAE commercial laws. This agreement should be drafted and executed before or during the company formation process to prevent future disputes and ensure smooth business operations.
