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A Subscription Agreement outlines the terms and conditions when investors buy shares or units in a UAE company or investment fund. It's the key legal document that binds both the company issuing securities and the investors who purchase them, setting out crucial details like share price, number of shares, and payment terms.

In the UAE, these agreements must comply with Securities and Commodities Authority (SCA) regulations and the Commercial Companies Law. They protect both parties by clearly stating investor rights, company obligations, and any restrictions on share transfers. For UAE free zone companies, the agreement also needs to align with specific free zone regulations and ownership requirements.

Use a Subscription Agreement when raising capital for your UAE business through share offerings or when launching an investment fund. This document becomes essential during private placements, seed funding rounds, or when bringing new shareholders into your company - especially in mainland UAE or free zone entities.

It's particularly crucial for UAE tech startups seeking venture capital, real estate developers offering project shares, and family businesses restructuring ownership. The agreement needs to be in place before any money changes hands, and it must align with SCA regulations, especially when dealing with qualified investors or institutional funding sources.

• Master Subscription Agreement: Used for ongoing business relationships with multiple subscription transactions over time, common in UAE tech and SaaS companies
• Shares Subscription Agreement: Standard format for direct equity investments in UAE mainland companies, detailing share class and voting rights
• Subscription Service Agreement: Focuses on recurring service delivery and payment terms, popular in UAE free zones
• Advanced Subscription Agreement: Complex version for sophisticated investors, including detailed warranties and conversion rights
• Subscription Agreement Private Placement: Specifically designed for private offerings to qualified UAE investors under SCA regulations

• Companies and Startups: Issue Subscription Agreements when raising capital, especially UAE mainland companies and free zone entities seeking investment
• Private Investors: Sign these agreements when purchasing shares, including angel investors and high-net-worth individuals in the UAE market
• Legal Counsel: Draft and review agreements to ensure compliance with UAE Commercial Companies Law and SCA regulations
• Investment Funds: Use these agreements for fund subscriptions from qualified investors in UAE-regulated investment vehicles
• Corporate Officers: Execute agreements on behalf of their companies, ensuring proper authorization and documentation

• Company Details: Gather full legal name, trade license number, and registered UAE address of all parties involved
• Investment Terms: Document share price, number of shares, class of shares, and total investment amount in AED
• Regulatory Compliance: Check SCA requirements and free zone regulations if applicable for your specific transaction
• Payment Structure: Define payment schedule, bank details, and any escrow arrangements required by UAE law
• Shareholder Rights: List voting rights, dividend rights, and any transfer restrictions under UAE Companies Law
• Documentation: Collect trade licenses, board resolutions, and powers of attorney from all signing parties

• Parties Section: Full legal names, trade license numbers, and registered addresses of the company and subscribers
• Share Details: Number, class, and price of shares being subscribed to, with clear payment terms in AED
• Representations: Subscriber's confirmation of eligibility under UAE investment laws and SCA regulations
• Warranties: Company statements about share validity and compliance with UAE Companies Law
• Governing Law: Explicit reference to UAE law and relevant free zone regulations
• Execution Clause: Signature blocks with proper attestation requirements under UAE law
• Transfer Restrictions: Rules on share transfers aligned with UAE ownership requirements

A Subscription Agreement differs significantly from a Buy-Sell Agreement in several key aspects, though both deal with company ownership. While a Subscription Agreement handles new share issuance and initial investment terms, a Buy-Sell Agreement governs existing share transfers between shareholders.

• Timing of Use: Subscription Agreements are used during capital raising or new share issuance, while Buy-Sell Agreements activate when existing shareholders want to exit or transfer shares
• Primary Purpose: Subscription Agreements establish new ownership rights and investment terms; Buy-Sell Agreements protect existing shareholders by controlling how shares can be sold
• Regulatory Context: Subscription Agreements must comply with UAE SCA regulations for new share offerings; Buy-Sell Agreements focus on UAE Companies Law provisions for share transfers
• Documentation Requirements: Subscription Agreements need detailed investment terms and subscriber qualifications; Buy-Sell Agreements require valuation methods and transfer restrictions