Dubai is prospering with businesses booming across every sector. With the advancement in place, Dubai’s corporate is structured following modern business. In Dubai, a company can be started in primarily three distributions: Dubai Mainland, Dubai Free zones and offshore. Each of these fall under different tax jurisdiction and subjections.
Commercial Companies Law (CCL) forbids an LLC in the mainland to provide 100% foreign ownership to an investor. Though company formation in Dubai free zones is a feasible option, setting up a business in the Dubai Mainland has apparent advantages in the longer run. Starting a business in Dubai Mainland generally compasses to the formation of a Limited Liability Company (LLC).
What is LLC?
A Limited Liability Company (LLC) is amongst most popular business set up entities in Dubai, UAE. An LLC company is a flexible enterprise type involving a partnership of local and foreign entities. This corporate structure subjects partnership with a local sponsor entitled with a minimum of 51% shares. An LLC in Dubai can have between two to fifty shareholders. An expatriate can have no more than 49% of stock. It can be defined as a company in which the liability of its partners is limited only to the extent of their shares in the capital. It is a separate and distinct legal entity. An LLC may conduct any type of business activity excluding insurance, banking, and investment
Benefits of Incorporating a Limited Liability Company in Dubai
Forming a Limited Liability Company is the most popular means for setting up a company in Dubai. Establishing LLC in Dubai has several benefits.
- Dubai LLC provides maximum opportunities to gain from the UAE economy.
- There is no minimum capital required to establish a Limited Liability Company.
- Investors can manage the business without interference from the local partner.
- Opening a corporate bank account along with viable credit facilities.
- An LLC, being a distinct business entity can acquire Tax Identification Number (TIN), open a bank account and do business, all under its name.
- No restrictions on the number of visas that can be obtained
- Investor visa of an LLC investor can get investor status in the Emirate along with their family
- Easy to open global/corporate bank accounts in UAE and avail credit facilities
- A mainland company is not required to pay the standard 5% customs duty on imported goods
- No restrictions on real estate ownership
- LLC has the option of opening branches
Process of Setting Up an LLC in Dubai
- Choosing a legal structure for the company
- Select the name and the activities involved under the company in the application
- Choose a location depending upon factors like nearness to the market, accessible transportation, etc. for your LLC formation in Dubai
- Gather all the necessary documents and submit them to the Department of Economic Development of the UAE
- Gain additional permission from concerned authorities for exclusive
- Get a physical/virtual office/warehouse/land for the company operations
- Other documents required can be obtaining Trade License, Certificate of Incorporation, Memorandum of Association (MOA), Share Certificate and Tenancy Agreement for your LLC company setup
- Get visas, labour cards and process other final documents
Documents Required to Set Up an LLC in Dubai
- Certified passport copies of all the shareholders and managers
- NOC letter from the sponsor if the partner or the Manager has a residence visa in the UAE, if applicable
- Registration application form from the DED
- Trade name reservation
- Initial approval from the DED
- Tenancy contract for the office/warehouse attested by the Planning Department and Civil Defense Department of Dubai municipality along with location plan
- Memorandum of Association (MOA) duly attested from the public notary
- Professional/Bank reference letter for each shareholder
Certifying documents by the notary in the particular UAE consulate and the home country of the applicant is mandatory. It is advisable to start the notarization procedure early as the process takes significant time. The process involves translating the documents into Arabic before submitting to UAE authorities. For maintaining authenticity, the application is thoroughly investigated by the state government legal department authorities. After you get a green signal from the authorities, the company name is included in the Commercial LLC business register, and the MOA gets published in the Economy and Commerce Ministry bulletin. The time required to form an LLC company in Dubai from the date of receipt of all the necessary documents is approximately a couple of weeks. The LLC formation cost in regards to documents is around AED 10,000.
Business Setup Worldwide is specialised in providing accurate business setup solutions across the globe. We have a background of a decade plus experience in catering to our clients successfully for business set up services. For setting up a Limited Liability Company in Dubai, or any business set up related query feel free to contact us. We would be happy to assist you in your business setup process.