Dubai LLC

Dubai LLC | LLC Company Formation In Dubai

 


dubai llcA Dubai limited liability company (LLC) is an ideal vehicle to use for entrepreneurs doing business within Dubai, the UAE and internationally. With Dubai LLC, you still can own only 49% of the equity. However, you can do that and keep more than 49% of the profits.

UAE law allows LLCs to come up with flexible, differential profit sharing arrangements. These can give you an enormous advantage, especially since the 51% local equity rule is quite inflexible in most cases. It’s not surprising, therefore, that the LLC is the most popular form of business organization in UAE.

A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Most Companies with expatriate partners have opted for this Limited Liability Company, due to the fact that this is the only option which will give maximum legal ownership i.e. 49% to the expatriates for a trading license.

While foreign equity in the company may not exceed 49%, profit and loss distribution can be mutually agreed upon. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.

Fifty one per cent participation by UAE nationals is the general requirement for the Limited Liability Companies.

Please fill in the form on the right side for more information about dubai llc and your own free zone and local company.

Therefore the normal shareholding pattern for an LLC will be:

Local sponsor – 51% and

Foreign Shareholder (s) – 49%

The following is an overview of the advantages of incorporating a Dubai LLC, and whether this structure is the optimum solution to fulfill your international business needs.

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Advantages of a Dubai LLC

1.       A Dubai LLC offers unrivalled access to Dubai and the wider UAE economy. Through a Dubai LLC, international entrepreneurs obtain Trade Licenses from the Dubai government. There are few restrictions on the activities of a Dubai LLC, and it is possible to obtain a license for all activities with the exception of banking, insurance and investment activities.

2.       Through a Dubai LLC, investors obtain a strong physical presence in Dubai. Although cost effective office space is hard to find in, we offers solutions to meet every budget and specifications.

3.       Incorporating a Dubai LLC now faces no specific minimum capital requirements, after this formal requirement was abolished in the UAE. Companies may or may not be subject to minimum capital requirements, dependent on the size, nature and goals of the business.

4.       It is easy to open global corporate bank accounts following Dubai LLC set up.

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Dubai LLC: Legal Structures for Setting up Business in UAE

The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures.

The seven categories of business organization defined by the Law are:

  • General Partnership Company
  • Partnership-en-commendam
  • Joint venture Company
  • Public Shareholding Company
  • Private Shareholding Company
  • Limited liability Company (LLC)
  • Share Partnership Company

Out of these seven activities LLCs are more commonly used by the foreign investors.

Please fill in the form on the right side for more information about dubai llc and your own free zone and local company.

A Dubai LLC, the minimum capital requirement is AED 300,000 (US$ 82,000), contributed in cash. While foreign equity in the Company may not exceed 49%, profit and loss distribution can be mutually agreed.

Responsibility for the management of a Limited Liability Company can be vested in the foreign or national partners or a third party. The time required to form a company will be approximate 1-2 weeks from the date of receipt of all the documents.

The procedure and cost breakup will be given upon request.

Licensing

The basic requirement for all business activity in UAE is one of the following three categories of licenses:

  • Commercial licenses covering all kinds of trading activity
  • Professional licenses covering professions, services, craftsmen and artisans
  • Industrial licenses for establishing industrial or manufacturing activity

At Dubai llc license for majority of the activities are directly issued by the licensing authority – Department of Economic Development, Dubai.

Please fill in the form on the right side for more information about dubai llc and your own free zone and local company.

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