Dubai is one of the most affluent and cosmopolitan cities in the Middle East with the characteristics of both the East and the West. For many reasons, Dubai is the most favorable Business destination around the world.
LLC Company Formation in Dubai
Limited Liability Companies or LLC is the most popular form of Business setup in Dubai, registered by foreign investors because it grants maximum ownership in the company. With the limited liability, it can be formed with a minimum 2 and maximum 50 shareholders with the sharing of business capital else this can be either individual or corporate entities. This is the only option where companies obtain 49% ownership for the LLC business setup with foreign investors. Hence, UAE local partners have 51% shareholding of the company.
A Limited Liability Company (LLC) resembles a Private Shareholding Company, but with a constraint on the number of shareholders, which cannot exceed 50. This restriction helps to limit the liabilities in the event of financial loss or bankruptcy, hence the name LLC.
The originators of the LLC are not required to open up ownership to the general public and can fully subscribe to the capital that has been paid up. The administration of the company can be managed by UAE citizens, non-nationals, or even an external entity.
Benefits of LLC Company registration in Dubai and UAE
Registering a business in the UAE provides an ideal environment for commerce with numerous advantages. Foreign investors frequently choose this option to establish a company because of its 100% foreign ownership, tax exemptions, streamlined business procedures, advanced business infrastructure, technologically advanced e-governance system, exceptional lifestyle, and expanding business prospects.
The LLC Company can now be registered as a 100% expatriate-owned entity in UAE as per the new Cabinet Resolution of 2021. However, depending on the trading activity and industrial sector, the investor has certain regulations to be fulfilled.
Below are the some restrictions for establishing a Private Shareholding company:
- A LLC can be started with a minimum of 2 and a maximum of 50 shareholders.
- The minimum equity held by UAE nationals in a company must be 51%.
Procedures to open an LLC Company Formation in Dubai:
The steps required to establish an LLC in Dubai can differ based on the jurisdiction. Here is a brief overview of the process involved in setting up a company.
- Select an appropriate legal form for the business.
- Apply for trade name registration and select business structure.
- Complete notarization and legalization of corporate documents like the MOA.
- Submit the required documents to get the license from the Department of Economic Development of UAE.
- Submitting final documents for commercial/industrial/professional license.
- Prepare for post-formation formalities like getting labor cards for the company and establishment cards for visa applications.
- Processing visas
Documents required for LLC Company formation UAE:
Submit key documents for LLC formation approval to relevant authorities.
- Investor’s passport visas
- Local Sponsor’s passport copy
- Manager’s Passport copy (If needed)
- NOC letter from the sponsor
- Registration application form from DED
- Trade name reservation
- Tenancy contract for the Office/warehouse attested by planning department
Expert guidance on Dubai LLC setup at Link Up: At Link Up Corporate Services , we provide comprehensive support for setting up an LLC Company in Dubai. Our team of professionals are highly knowledgeable in all aspects of LLC formation. As registered business consultants, we bring years of experience to the table, offering company setup services to businesses of all sizes, from small to large enterprises.