Civil Company
Definition
Mainland partnership available to professionals such as consultants, doctors, engineers, and lawyers. Selected as a company type alongside LLC, Free Zone, and Branch Office during setup.
Also known as
- Professional Partnership
- Civil Partnership
- Professional Civil Company
Attributes
| Type | Partnership |
|---|---|
| Jurisdiction | UAE mainland |
| Governing authority | Department of Economic Development (DED) |
| Applicable law | UAE Commercial Companies Law (Federal Law No. 32 of 2021) |
| Minimum partners | 2 |
| Maximum partners | 50 |
| Liability | Unlimited, joint and several |
| Foreign ownership | 100% permitted for most professions |
What it is
A Civil Company is a UAE mainland partnership structure for two or more individuals practising a recognised profession — management consultants, doctors, engineers, lawyers, accountants, IT consultants, designers. It is licensed under a Professional License by DET (or the equivalent emirate authority). Foreign nationals can be 100% partners since 2021; for some regulated professions (e.g. legal services), a UAE national Local Service Agent is appointed for liaison purposes only — no equity, just a fixed annual fee.
Partners bear unlimited personal liability for civil-company debts, distinguishing it from an LLC where liability is capped at share capital.
Key characteristics
- Use case
- Two or more professionals practising a recognised profession
- Liability
- Unlimited personal liability of partners
- Local Service Agent
- Required for some regulated professions only
- License type
- Professional License from DET
How it works
- Partners agree on the business activity and draft a partnership agreement specifying profit-sharing, decision-making, and liability terms.
- Each partner submits attested educational certificates and professional qualifications to the licensing authority.
- The company applies for a professional trade license through the emirate's Department of Economic Development or equivalent body.
- A Local Service Agent is appointed if required for government liaison, though they have no ownership stake or interference in management.
- Upon approval, the Civil Company receives its trade license and can commence operations, hire staff, and open corporate bank accounts.
Types of Civil Company
| Type | Description | When it applies |
|---|---|---|
| General Partnership Civil Company | All partners participate in management and bear unlimited liability. | When all founding professionals intend to be actively involved in operations and decision-making. |
| Limited Partnership Civil Company | Contains both general partners with unlimited liability and limited partners with liability capped to their contribution. | When some investors want to contribute capital without assuming management responsibility or full liability. |
Examples
A group of three civil engineers establishes a Civil Company in Dubai to provide structural design consultancy. They obtain a professional license from DET, with each partner holding equal liability and profit share. In Abu Dhabi, two medical specialists form a Civil Company to run a private clinic, licensing through the Department of Economic Development Abu Dhabi. A sole practitioner architect may also use this structure, though partnership is the typical form.
Why it matters
A Civil Company is the right vehicle for partner-led professional firms — but the unlimited liability means an LLC is usually safer if the work involves any product, employees, or client risk worth insuring.
Common misconceptions
Misconception
Civil Company is just another name for LLC.
Reality
An LLC limits liability to share capital; a Civil Company exposes partners' personal assets. The legal forms are different.
FAQs
- Can a single person form a Civil Company?
- No. By definition a Civil Company is a partnership — two or more individuals are required. A solo professional should use a Sole Establishment under a Professional License instead, accepting the same unlimited liability.
- Does a Civil Company need a UAE national partner?
- Not as an equity partner since the 2021 ownership reforms. Some regulated professional categories still require a UAE national Local Service Agent appointed by contract for government liaison — this is not a shareholder role.
