Identify the jurisdiction
A UAE business may operate under a mainland license, a free zone license, or a structure involving branches and activity-specific approvals. Each jurisdiction has its own process for ownership changes, manager changes, license renewals, and activity amendments.
The buyer should confirm whether the current license supports the intended activity and whether the physical location, visas, and permits remain valid after the transaction.
Check third-party consents
Even when a license transfer is technically possible, a deal can stall because of landlord consent, franchisor consent, bank conditions, supplier approvals, or regulator requirements.
Owners should list all parties whose approval may be needed before launching a sale process. Buyers should make those approvals completion conditions where they affect value.
- Lease assignment or new lease terms.
- Free zone or Department of Economy approval.
- Regulated sector approvals and professional permits.
- Bank facility releases, guarantees, and security deposits.
Do not ignore visas and employees
Visa quotas, employee transfers, end-of-service benefits, and key staff retention can materially affect continuity. Buyers should understand which employees are essential and whether they will remain after completion.
Sellers should prepare staff schedules and clarify liabilities early to avoid late-stage price disputes.
Use professional advice before signing
Licensing and transfer rules can change, and requirements differ by activity and jurisdiction. Commercial heads of terms should be reviewed by qualified legal, accounting, and licensing professionals before either side relies on them.
This guide is general commercial information, not legal, tax, or accounting advice. Always consult qualified UAE professionals before signing transaction documents.
