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Professional company means an agreement by which two or more persons agree to serve others against a consideration whether they are equal or unequal in distributing the work, provided that the works are unified or carried out simultaneously.
Therefore it shall be regarded a professional company any firm which practices a profession as its main object and that partners rely on their livelihood on the intellectual effort they exercise more than on profiting from the business of others. On this basis the professional companies are set up between professionals or partisans and carry out non-commercial activities.
Federal Law No. 18 of 1993 in respect of issuing the Commercial Transactions Code expressly stipulates in article (15) that The word & Merchant; is not applicable to Ministries, Government Departments, Public Institutions, Corporations, Public Benefit Organizations, Societies, Clubs and Professionals who carry out non-commercial activities. However, any kind of commercial activities conducted by the above parties shall be subject to the provisions of this law unless those specifically stipulated to be exempted
A. Activities permitted to be practiced by professional firms
The firms which are registered as professional companies or firms may only practice specific activities and not extend that to commercial business. Such activities include rendering the following services: Legal practice and consultancy, auditing, organizing and keeping accounting records and books, civil engineering and architecture consultancies and services, managerial and economic consultancies and studies, technical services, medical and curative services, educational services and other similar services
B. Provisions Regulating the Activities of Professional Companies or Firms
Each partner is bound to perform the work which he accepted and undertook, and each of the partners has the right to collect the fee agreed upon by which the owner of the work is relieved of his liability by payment to any of the partners. The partner is not bound to carry out the part of work which he has agreed to do by himself, and he may assign the same to his partner or anybody other than the partners unless the owner of the work has made it a condition that the task may not be delegated. Otherwise, Delegates Non Protest Delegate is inapplicable
The profit shall be distributed between the partners in the manner agreed upon, it is possible that the distribution of profits be unequal even if it was conditional that the work shall be carried out equally, and each of them shall be entitled to his share of profit even if he did not work, but for an acceptable excuse. It is possible to register the professional company or firm on the basis that the premises are provided by some partners, the machines and tools are provided by other partners and the work be carried out by some other partners.
The firms, which are, registered as professional companies or firms may only practice specific activities and not extend that to commercial activities. The partners are jointly responsible for executing the work with Professional Company in UAE. get overview of professional company in uae. get services of professional company in uae.
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