LLC Company Formation in Dubai & It’s Advantages
Setting up a company anywhere in UAE is can be a tedious task. While the laws in UAE are seemingly relaxed and accommodating, the various types of companies you can set up here can seem a little confusing, particularly for first timers or who are new to the UAE market.
The LLC is the most common type of business structure in UAE. LLC Full Form – Limited Liability Company.
LLC can be formed by a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their shares in the business capital. It is an independent legal entity owned by multiple shareholders, established on the UAE mainland.
Criteria to setup Limited Liability Company (LLC) in UAE
- 51% Partner- 51 % share of business will be owned by any Emirati citizen appointed by the business as a partner as there is a rule that if an expat or a foreign company is incorporating a mainland company in UAE, then a local citizen as a partner is mandatory.As a foreigner investor, you own 49% of the shares and full control of the company as director. Profits are not divided as per the shares between the partners.
- Local Agent- An Emirati citizen must be appointed as a local agent. However, the foreign investor retains full control of the company and 100% of the shares. Local agents usually act as sleeping partners and won’t be involved in the running of your business. They support to deal with ministries and the government for various legality.
Registration of LLC –
- Registration of the company with the Department of Economic Development.
- Notarizing the company’s Memorandum of Association (MOA) and Articles of Association (AOA).
- Submitting all the required documents and business license application form to the Department of Economic Development.
- Registering with the Dubai Commercial Register.
- Upon incorporation, registering one’s employees with the Ministry of Labour and General Authority for Pension and Social Security is also important.
Activities requiring special approvals and Licenses –
- Tourism activities
- Health Care activities
- Architectural and engineering consultancy
- Shipping, freight forwarding and logistics activities
- Companies in Dubai World Communities (Trakhees)
- Educational services
Advantages of a LLC Company –
- Flexibility – LLC setup in UAE can trade anywhere in UAE and GCC. Thus, it has more flexibility in terms of trading as compared to others. Conduct business with government & semi government business.
- Easy setup – New initiatives by UAE Government has made the formation process easy and can be done in a span of 90 minutes with the Dubai Department of Economic Development (DED).
- Affordable – Starting price for licence applications is around AED 17,000 and, depending on the exact nature of your business. This is quite affordable as opposed to the notion of expensive company setup in UAE.
- Multiple visa- There are no restrictions on the number of visas that can be obtained. The investors of LLC can avail investor’s visa under which they can get investor status in the Emirate along with their family.
- Exemption from Customs- LLC is exempted from paying the standard 5% customs duty on imported goods. Also, there are no restrictions imposed on real estate ownership.
- Operate the corporate bank account easily.
- Can expand their business and open the branches
- No Capital requirement- There is no specific requirement of capital needed for a LLC.
Setting up LLC?
Question now arises, how would you practically apply all this information to setup your LLC in UAE?
Horizon Biz Consultancy has skilled consultants that are experienced in Business Setup process in UAE. Our team has established their credibility in providing services to small, medium and large scale enterprises.
We are registered agents and provide complete package solutions on company formation, registration, setup, etc. To get more information on our services or to setup your business in Dubai, contact us for more information at firstname.lastname@example.org or on 501042665.