Whether Side Agreement is Valid in the UAE?

1 February 2024 by
Research Team

Yes, side agreement is valid in the LLC. 

Delve into the concept of LLCs, exploring their side agreements, advantages, and legal status in the UAE. Article 71 of Federal Law Number 2 of 2015, on Commercial Companies, outlines an LLC as an entity where partners are liable only up to their capital shares. With a minimum of two and a maximum of fifty partners, this structure protects partners' personal interests during crises.