Acquiring a UAE entity: the due diligence process

By Ziyad Hadi, Afridi & Angell
0
1552
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

We are often approached for UAE law advice by foreign companies looking to acquire UAE entities. The first service that such clients generally require is a due diligence review of the UAE target.

Aside from reviewing key contracts with suppliers and customers, lease agreements, finance facilities and other information that is to be provided by the target, the foreign client, or the client’s foreign counsel, invariably asks us to independently verify or determine from publicly available sources the following core matters: (a) whether the target is duly registered, validly existing and in good standing; (b) whether the target is in liquidation, receivership or insolvency proceedings; (c) the ownership structure of the target; (d) ownership of key assets of the target and whether there are any liens, mortgages, encumbrances or other security interests over the shares or assets of the target that are located in the UAE; (e) the target’s freehold or leasehold rights over its real property; (f) whether there are any pending litigation claims against the target in the UAE; and (g) any key permits and licences.

Clients are often surprised (and sometimes distressed) to hear that it is not possible to obtain most of this basic information with respect to limited liability companies (LLCs) incorporated outside of the dozens of free zones in the UAE, where the public information obtainable varies.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Ziyad Hadi is a counsel at Afridi & Angell, a UAE-based law firm. Afridi & Angell has offices in Abu Dhabi, Dubai and Sharjah.

afridi__angell_logo-2016

Emirates Towers Offices – Level 35

Sheikh Zayed Road, Dubai

P.O. Box 9371

United Arab Emirates

Tel: +971 4 330 3900

Fax: +971 4 330 3800

Email: dubai@afridi-angell.com

Web: www.afridi-angell.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link