A business needs multiple pillars to run on and while most entrepreneurs prefer to setup their business on their own, others are most likely to prefer having partnerships.
In UAE, one requires a business partnership either to run the operations together or to fulfill the pre-requisite formalities for the government. In any case, here are a few things you need to know about getting into a business partnership
How Does Obtaining Business Partnership In UAE Help Establish Your Business?
The first and foremost important reason to get into a business partnership is investment. Many entrepreneurs have great business ideas but not enough funds to launch their idea opting for a suitable business partner may help you suffice the financial needs of the company.
The other benefit of obtaining a business partnership is having value-adding prospects. Your partner may help provide you with wider networking and marketing opportunities.
Having a business partner can help utilize both your skills, knowledge and financial assets for the business.
What Are The Points You Need To Consider Before Getting Into A Business Partnership?
The factors you need to consider might vary depending on your business activities. However, you need to consider a few things while setting up a partnership, such as:
1) Ownership and role distribution
As a partner you should be clear on the company’s percentage of ownership. Along with the ownership the specific roles and duties must be outlined.
2) Monetary Of The Assets
The second step after partnerships is to draw a line between the stakeholders to decide financial points such as profit and loss allocation, salary collection, reinvestment for business growth and allocation.
3) Power Of Decision Making
The functional aspects of your company such as hiring, assignments, and managing employees are a few out of many operational functions.
4) Financial Powers
As we speak of every factor it is necessary to keep in mind that financing of the company is one of the most important factors; the transaction, loans and signatures must be allocated between the partners.
In most cases, companies hit a road block due to difference of opinion between the stakeholders which is why the partners must prepare a solid contract of trade secrets between them.
6) Death or Exit
What if there comes a situation in which one of the partners suddenly passes away or is willing to retire? For such a situation it is necessary to establish the points of consequences in the contract.
How To Find The Perfect Business Partner In Dubai?
We at startup zone not only guide you in obtaining the business license but also provide multiple business services including finding the right partner for you.