How can an expat owner secure his company's future after his sponsor dies in the U.A.E?

The sponsor of the company Passed away

 Here's how an expat owner can secure their company after the sponsor passes away in the U.A.E

Understanding the Situation:

• Sponsor vs. Ownership: It's crucial to distinguish between the sponsor and the owner of the company. While the sponsor is responsible for visa sponsorship, the expat owner may hold full legal business ownership.

Immediate Actions:

1. Inform Authorities: Notify the relevant authorities, including the Department of Economic Development (DED) and the General Directorate of Residency and Foreign Affairs (GDRFA), about the sponsor's passing.
2. Continue Business Operations: The expat owner, if holding a valid residency visa, can continue managing and operating the company.

Ownership Transfer and Legal Considerations:

1. Probate Process: The deceased sponsor's estate, including any ownership stake in the company, will undergo probate. This process determines the legal heirs and their inheritance rights.
2. Ownership Transfer: Once the heirs are identified, the expat owner may need to negotiate with them to acquire their shares or reach an agreement for continued ownership. This may involve legal procedures to update ownership records with the DED.
3. Visa Sponsorship:
• Temporary Grace Period: The GDRFA typically grants a grace period of 30 days after the sponsor's death for the expat owner to regularize their visa status.
• New Sponsor: The expat owner will need to secure a new sponsor for their residency visa. This could involve finding a new business partner, a family member within the UAE, or utilizing alternative visa options like freelance permits or establishing a company in a free zone.

Seeking Legal Advice:

Consulting with a lawyer specializing in UAE business and immigration law is crucial. They can provide guidance on:

• Navigating the probate process and potential inheritance claims.
• Negotiating ownership transfer with the heirs.
• Complying with visa sponsorship requirements and securing a new sponsor.
• Addressing any other legal or tax implications arising from the situation.

Important Points:

• The specific process may vary depending on the ownership structure of the company, the sponsor's nationality, and the presence of a Will.
• Acting promptly and seeking legal counsel is essential to secure the company's future and ensure the expat owner's continued residency status in Dubai