Fundraising Commission Agreement Template for the United Arab Emirates

A Fundraising Commission Agreement is a legally binding contract that governs the relationship between companies seeking capital and professional fundraisers in the United Arab Emirates. This document establishes the terms under which fundraisers, placement agents, or investment advisory firms will assist businesses in raising capital from investors, while ensuring compliance with UAE federal laws and regulatory requirements.

When do you need this document?

You need a Fundraising Commission Agreement when engaging professional intermediaries to raise capital for your business in the UAE. This is particularly important when working with private equity firms, venture capital firms, or corporate finance advisory firms that specialize in connecting businesses with potential investors. The agreement becomes essential when you want to establish clear performance-based compensation structures, define the scope of fundraising services, and ensure regulatory compliance with SCA requirements. It's also crucial when your fundraising activities involve securities or financial instruments that fall under UAE regulatory oversight, or when you need to establish exclusive or non-exclusive arrangements with multiple fundraising partners.

Key legal considerations

Several critical legal elements must be addressed in your Fundraising Commission Agreement. The commission structure should clearly define success metrics, payment triggers, and calculation methods to avoid disputes. Confidentiality provisions are essential to protect sensitive business information and investor details shared during the fundraising process. The agreement must specify whether the arrangement is exclusive or non-exclusive, and include clear termination clauses that protect both parties' interests. Regulatory compliance clauses should address anti-money laundering obligations, investor disclosure requirements, and adherence to SCA regulations. Additionally, the document should include detailed reporting requirements, performance milestones, and clear definitions of target investor categories to ensure both parties understand their obligations and expectations.

Legal requirements in United Arab Emirates

Under UAE law, Fundraising Commission Agreements must comply with the UAE Civil Code (Federal Law No. 5 of 1985) for basic contract formation and validity requirements. The UAE Commercial Transactions Law (Federal Law No. 18 of 1993) governs commercial relationships and commission-based arrangements, making it essential for structuring legally compliant agreements. If your fundraising involves securities or investment products, you must ensure compliance with Securities and Commodities Authority regulations, which may require specific licensing or registration for fundraising activities. The UAE Commercial Agency Law may also apply if the fundraising arrangement could be classified as a commercial agency relationship. Additionally, both parties must ensure compliance with UAE Central Bank regulations if the fundraising activities involve banking or financial services, and adherence to anti-money laundering laws throughout the capital raising process.