Dubai Freezone and limited liability - comparable with western equivalent of it?

[ElBotellon]

i have read that
- UAE have no long history of bankruptcy laws, so high risk of getting personal liability for directors/owners
- even the risk of a judgement (i.e. a debt) against the person, may generate criminal liability (just based on the debt) if not paid or if the debtor is not solvent
- a single member free zone company has no limited liability

which is the real risk?
for obvious reasons i am not concerned about fraudulent activity (which is illegal everywhere in the world) but more about "good faith" debt done with the most noble purposes or simple mistakes during management activity which may generate civil liability for a director and end up with a simple civil settlement in other countries while - apparently - have more serious consequences in the UAE.

 

[Fred]

You mentioned yourself already everything in the right way - while you enjoy with a FZCO on gloabl perspective same limited liability benefits like with LLC's and LTD's you will have no limited liability benefits within the UAE and being bankrupt is illegal.

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[Osleak]

Fred said:
You mentioned yourself already everything in the right way - while you enjoy with a FZCO on gloabl perspective same limited liability benefits like with LLC's and LTD's you will have no limited liability benefits within the UAE and being bankrupt is illegal.
Click to expand...

Fze with one shareholder have not limit liability like llc on global perspective?

 

[Fred]

Osleak said:
Fze with one shareholder have not limit liability like llc on global perspective?
Click to expand...

For FZCO we work with - same limited liability applies - the MoA remains the same - no matter if 1 or 2+ shareholders.

For FZE - it's meanwhile named FZ-LLC - it should be the same but as we don't work with this small FZ's outside Dubai I can't guarantee.

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