Partnership in Commendam Company Formation

Partnership in Commendam Business Formation

Partnership in Commendams applies to UAE nationals only. It is a firm consisting of one joint partner or more who is liable with all his money for the firm and another in-commendam partner or more who shall not be responsible for the liabilities of the firm except for the value of his share in the capital. Partnership in Commendams is an establishment consisting of one more joint general partner whose responsibility for the liabilities includes their property. The Partnership in this kind of company includes another in commendams partner whose capital share participation covers his responsibility toward liabilities jointly liable for all profit or loss incurred.

Partnership in Commendam Business Formation

The partners are jointly and severally liable for all of their debts. One or more limited partners who are liable for the limited partnership’s debts. Limited partners are only to the extent of his capital contribution. According to the law, all joint partners in such type of firms should be nationals of the UAE due to partners involved in financial commitments in a Limited partnership.

A limited partner may not participate in the management or partners have his name appear in the name of the partnership