Corporate and Commercial FAQs

1. Do you handle cross-border M&A transactions?

Yes. We regularly work on transactions where either the buyer or the target company is outside the UAE. We support clients with foreign investment rules, tax considerations, and cross-jurisdictional compliance, as applicable in the UAE.

2. What types of companies do you usually advise in M&A matters?

We work with start-ups, SMEs, multinational groups, regulated entities, investors, and family businesses across various sectors such as technology, healthcare, finance, trading, and manufacturing.

3. What documents are typically involved in an M&A deal?

Common documents include NDAs, term sheets or LOIs, share or asset purchase agreements, shareholder agreements, employment transfer documents, regulatory filings, and closing deliverables.

4. How long does an M&A transaction usually take?

Timelines vary depending on deal size and complexity. A simple transaction may take a few weeks, while a larger or regulated deal may take several months.

5. What is the first step in incorporating a company in the UAE?

Determining the business activity and jurisdiction (Mainland, Free Zone, or Offshore) is the first essential step.

6. How do I choose the right jurisdiction for my business?

It depends on your operational needs—Mainland allows full UAE market access, Free Zones offer sector-focused benefits, and Offshore suits holding or international structures.

7. What rules apply when choosing a trade name?

The name must be unique, non-offensive, relevant to the activity, and include the legal structure suffix.

8. Can I apply for visas under my new company?
9. Yes, once the company is registered, you can apply for establishment cards and visas.
   Are there annual renewal requirements?

Yes, all UAE companies must renew licences annually and comply with regulatory filings.

10. What is the difference between insolvency, liquidation, and restructuring?

• Insolvency refers to a company’s inability to pay its debts when they fall due.
• Liquidation is the formal process of winding down a company and distributing its assets to creditors and shareholders.
• Restructuring involves reorganising operations, debt, or ownership to restore financial stability and potentially avoid liquidation.

11. What is the difference between voluntary liquidation and court liquidation?

• Voluntary liquidation is initiated by shareholders or directors—either because the company is solvent and wishes to cease operations or because directors choose a structured wind-down to protect stakeholders.
• Court liquidation is ordered by the court, typically due to insolvency, non-payment of debts, or creditor petitions. A court-appointed liquidator manages the winding-up process and creditor distribution.

12. Why do banks and financial institutions need legal counsel?

Legal experts ensure transactions comply with RBI guidelines, SEBI regulations, and international standards, while mitigating risks in cross-border financing, mergers & acquisitions, and structured finance deals, and ensuring that deals are executed smoothly, transparently, and with long-term regulatory alignment.

13. What types of transactions require legal support?

Legal support plays a critical role across a wide range of business and financial transactions. It ensures compliance, mitigates risks, and protects the interests of all parties involved. Key areas where legal expertise is essential include Mergers & Acquisitions, Joint Ventures, Asset purchases, Commercial Real Estate Transactions, Intellectual Property Transactions, Loan agreements, syndicated lending, project finance, securitization, bond issuance, contracts, etc.

14. What is the SARFAESI Act, and how does it help Banks?

The SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) allows banks to recover NPAs without court intervention by selling secured assets or via asset reconstruction.

15. What are the compliance requirements for banking and finance transactions?

Banking and financial transactions are subject to comprehensive compliance obligations. Financial Institutions and companies need to complete regulatory filings, obtain approvals, and make disclosures as required. They also have to meet anti-money laundering (AML) and know-your-customer (KYC) standards, while protecting customer data under privacy regulations.

16. What services do our firm offer for Banking and Fintech companies?

We at ATB Legal provide financial technology innovators stay ahead by providing legal guidance on digital payment regulations, data protection, and technology contracts—ensuring smooth operations and fostering sustainable innovation.