Civil Company in the UAE
What a civil company is
Dubai describes the civil company as a company owned by two or more partners practising a professional activity, giving tailors, beauty salons, consultancy and training as examples. It is licensed with a professional licence, meant for people who offer services based on intellectual or artistic abilities.1
Under the Civil Transactions Law, a company is a contract by which two or more persons each contribute property or work to a project and share its profit or loss.2
Liability of the partners
| Rule | Civil Transactions Law |
|---|---|
| Debts the company cannot pay | Partners pay the balance from their own property, in proportion to their share of losses (Article 671) |
| Joint liability clause | If the contract says so, all partners are jointly liable for the debt (Article 671) |
| Partnership for work | Partners are jointly liable for performing the work (Article 687) |
Source: Federal Law No. 5 of 1985, Civil Transactions Law2
Because liability is not limited to the capital, many investors compare a civil company with an LLC, which can also carry out many professional activities. Check which legal forms your activity allows.
Foreign partners
Professional businesses owned entirely by non-GCC nationals need a UAE local service agent, appointed under an agreement attested by a notary public or a court. The attested service agent contract is among the documents for the licence.3
Whether a civil company is available depends on the activity. Invest in Dubai lists, for each activity, the legal forms it allows; for information services, for example, the list includes the civil company alongside the LLC and the sole establishment.4
The local service agent has no share in the business and takes no part in management. Agree the annual fee in writing.
Frequently Asked Questions
Are partners in a UAE civil company personally liable?
Yes. If the company cannot pay a debt, the partners pay the balance from their own property in proportion to their share of losses, or jointly if the contract says so (Civil Transactions Law, Article 671).
Sources
- Dubai.ae: Business set-up options
- Federal Law No. 5 of 1985, Civil Transactions Law
- UAE Government Portal: Steps to start a business on the mainland
- Invest in Dubai: Applicable legal forms for an activity
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.