Professional Company in UAE
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”.