What is a Limited Liability Company in Dubai
LLC is the most famous commercial structure in the United Arab Emirates with a maximum of 50 shareholders. The Department of Economic Development (DED) is the government entity responsible for organizing and determining the permitted commercial activities in limited liability companies. It is also the granter of all licenses to limited liability companies.
There is no minimum capital investment in the LLC. The management of the LLC may authorize up to 5 persons from UAE or non-UAE nationals. In this advisory guide, we will dive into the process of LLC company formation in Dubai and the UAE.
Check our guide to LLC Company Formation in Saudi Arabia
Advantages of Establishing Companies in the UAE
Dubai is a leading economic hub and an ideal location to start a business. The UAE has a strong economy, ranking 30th as the world’s largest economy and 2nd largest in the MENA region. Moreover, Dubai has a well-developed infrastructure including an advanced transport network and modern facilities. Its strategic location connecting the East and West makes it an ideal trading hub.
Benefits of Starting a Limited Liability Company in Dubai
Unlike free zone companies, companies with limited liability in the conduct of their business activities are not limited to the United Arab Emirates or GCC States. Companies with limited liability enjoy greater freedom concerning ownership of real estate or the number of visas they can apply for. There are also no restrictions on the minimum capital.
- Immediate authorization: The establishment of a company with limited liability is very easy. Companies can obtain immediate licenses through the Immediate Licensing Initiative. Moreover, a foreign investor can register a company in Dubai with the economic circle within minutes, while a full establishment may take just a few days.
- Full foreign ownership: Investment in the Emirates enables foreigners to own their companies by 100%. Full foreign ownership means that there is no need for a guarantor of the nation. The investor has the full right to own the company and to transfer its profits.
- Diversity in business activities: Of the more than 2,000 businesses allowed by the Economic Development Service, foreign investors can apply for a license to engage in any free trade activity.
- Tax benefits: Companies with limited liability in the United Arab Emirates are entitled to tax relief, which means that they are not subject to income tax.
Steps to Start an LLC in Dubai:
Before initiating the setting up of a limited liability company in Dubai, investors should ascertain these crucial steps:
- Company name: The name must be unique and not conflict with any existing company name.
- Choice of business activity: There are many business activities in the Emirates. Get to know here.
- Shareholders: The number of contributors and their share ratios must be determined.
- Submission of required documents: All requested documents must be submitted.
- Payment of fees: Registration fees and insurance must be paid.
- Trade license: The entity concerned will issue a business license to the company.
Check the quick steps for company formation in Dubai
How to setup an LLC in Dubai, UAE
In this comprehensive guide, we will proceed with establishing a limited liability company in Dubai.
- Choice of business: It is important to select the appropriate extra activity to setup any company in Dubai. However, to decide on your business activity, do a detailed search of your market. Business Link’s experts are ready to help you identify your company’s best business activity.
- Registration of company name: The next step after choosing a business is to register a limited liability company in Dubai. To register, make a list of three unique and decent names that your clients can easily remember, one of which is chosen by the Economic Development Service. Then record the approved name.
Note: Business leaders must follow the guidance for the designation of companies developed by the Government of the United Arab Emirates. Our consultants can help you name, and make sure that your company’s name is legal.
- Selection of the company’s location: Your workplace depends on the type of business activity, the area required, the size of the workforce, labor requirements, mobility, etc. If you need actual office space, our experts can help you get a lease and perform legal procedures for the contract.
- Establishment of a Memorandum of Association (MOA): The Memorandum of Association describes all business activities in which the company participates and the ownership of its shares. It defines the company’s relationship with shareholders. It also contains information concerning the company’s authority and rights and the company’s relationship with shareholders. The MOA and its associates must be established with the lease to the official entities.
- License Approval: There is a multiple list of types of licenses in the Emirates, such as commercial, industrial, and professional. A limited liability company can issue an immediate license in Dubai. Nevertheless, some commercial activities may require additional licenses and approvals.
After checking the documents, you can get your business license.
Documents required to setup a limited liability company in Dubai
This is a list of all the important documents you need to establish a limited liability company in Dubai:
- Copies of passports and visas for shareholders
- Photographs
- Visa for shareholders or United Arab Emirates identity (for citizens of the United Arab Emirates)
- Certificate of No-Objection (for example, if the shareholder is an employee in any of the Emirates companies)
- Registration application form from Dubai Economic Service
- Rental contract for office, warehouse, or exhibition by the Department of Civil Defence of the Municipality of Dubai.
- The Momentum of Association is certified by the public notary.
Cost of Setting Up a Limited Liability Company in Dubai
The cost of establishing a limited liability company in Dubai depends entirely on the type of business activity and control factors such as the cost of registering the company and rent, the number of visas, and additional approvals. This makes the final expenses of establishing a limited liability company in Dubai very variable. So, start by creating a limited liability company with an investor visa in Dubai. The cost of an investor’s visa varies from Dh 4,000 to Dh 5,500.
How Business Link Consultation Help You Set up an LLC in the UAE?
The company formation in Dubai can be a simple step, but you need qualified experts to deal with all legal procedures concerning the UAE government to ensure success from the first steps.
Business Link has an excellent team of business set-up experts who can offer solutions that suit your company’s needs by providing reliable solutions and free consultations, as well as continuing support for you beyond the formation. Establishing your business in Dubai is the first step. Moreover, We assist in subsequent tax procedures, marketing services, and human resources services.
Read more about why Hiring a Business Setup Consultant for Company Setup in Dubai
Take advantage of our free advice today and obtain expert advice on the establishment of businesses in the United Arab Emirates, to find what is best for your business needs.
