How to Set Up a Limited Liability Company in Dubai?
Dubai is one of the most prosperous and cosmopolitan cities in the Middle East, combining the elements of both the East and the West. It is one of the most favorable business hubs the world over. Over the past decade, Dubai has attracted millions in LLC (Limited Liability Company) Company formation in Dubai. Most of the investors prefer to set up a Limited Liability Company or LLC Company formation in Dubai.
The standard type of company in the UAE mainland is the Limited Liability Company (LLC). The DED is the government body authorized to issue all licenses for LLCs and is responsible for classifying and regulating the types of economic activity that may be undertaken. Limited Liability Company (LLC) is the most common form of business in the UAE. A Limited Liability Company 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. Dubai limited liability companies allow foreign citizens to own 49% of its shares, while 51% must be brought up by a local sponsor or partner. There are no minimum share capital requirements to register a limited liability company in Dubai, except for the sufficient capital test enabled by the Department of Economic Development (DED). In this case, DED decides if the capital subscribed by the founders is sufficient for the undertakings they intend. Another requirement for a Dubai limited liability company is the managerial ones. Under the Dubai company Act the company must have between one and five managers. The incorporation procedure of a limited liability company in Dubai is quite simple requiring a few steps to be completed. Another advantage of the Dubai limited liability company is that it can be registered for any commercial purpose. Another added advantage is that the tax authorities depending on the country, consider the Limited Liability Companies as partnerships when calculating and imposing various taxes. The owners of a Limited Liability Company are called members which is synonymous with the term shareholders.
Here are the steps to register an LLC in Dubai.
- Registering the company with the Department of Economic Development (DED)
- Drafting and notarizing the company’s Memorandum and Articles of Association
- Submitting all the required documents and business license application form with the Department of Economic Development. The required documentation will vary greatly depending on the type of business activity, including but not limited to:
- Certified passport copies for all shareholders and managers;
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- Copy of the UAE residence visa, if applicable;
- No Objection Certificate (NOC) from the current UAE residence visa sponsor;
- 2 x Certified proofs of address for each shareholder;
- 1 x Signed Sovereign Application Form;
- 1 x CV for each shareholder;
- 1 x Professional / bank reference letter for each shareholder.
- If the shareholder is to be a corporate entity, the required documentation will include:
- Memorandum and articles of the company;
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- A board resolution agreeing to incorporate a new LLC in UAE;
- A power of attorney (POA) to the General Manager to incorporate the new LLC.
- Registering with the Dubai Commercial Register
- All documents must also be translated into Arabic by an official translator before they can be presented to the authorities in the UAE
- Upon incorporation, registering one’s employees with the Ministry of Labour and General Authority for Pension and Social Security
Setting up a limited liability company in Dubai comes with various advantages, especially for foreign investors. It has correspondents in most countries in the world, therefore it is a popular business form. Dubai LLC offers unrivaled access to the wider UAE economy. It offers access to all industries in Dubai and the UAE, for those interested in starting a business here. Any type of business license can be obtained by registering a limited liability company. When setting up in a Dubai free zone, the limited liability company will offer full ownership to a foreign investor. There are no share capital requirements related to opening an onshore limited liability company. It is easy to register and to open a local bank account for, however, a local agent must be appointed for the incorporation procedure.
At Impressive Companies Representation, we provide complete assistance for clients who are interested in LLC company formation in Dubai. Our business consultants clearly understand your requirements, your budget, nature of your business activity, complete details of your partners, and give complete assistance in LLC Company formation in Dubai. Our team will provide the best advice when it comes to determining the most suitable consultant for your business.
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