Limited liability Company:
Refers to a company in which a business partner (either a UAE person or a UAE organization) will own 51%. The proper legal framework is always the first step in a strong company registration process. One of the ways to start a business in Dubai is to use a Limited Liability Company or LLC temporarily. The Limited Liability Company in Dubai is the most common type of business. It can be made up of at least 2 and a maximum of 50 shareholders, their liability is limited to their shares of the business capital. Many companies with foreign partners prefer LLC because this is the only option that offers higher legal ownership, i.e., 49%, to an outsider of a local business. As it is mandatory to own the UAE as a partner in the LLC (51% shareholding), the potential investor has the option of selecting the national UAE (sponsor) as a partner in the company.
LLC is flexible and profit-sharing arrangements are in place. This gives the foreign investor a great opportunity as 51% of the legal equity has a local partner.
Steps to Start LLC Company in Dubai:
- Decide on a Trade Name:
Choose the right name that is unique and relevant to your business.As it is mandatory to own the UAE as a partner in the LLC (51% shareholding), the potential investor has the option of selecting the national UAE (sponsor) as a partner in the company.
- Select a Location:
Choose the location that suits you according to the type of your business. The company’s operations must be performed through a physical/physical office or warehouse.
- Find a Local Sponsor:
Agree with a local sponsor who will own 51% of your LLC business and the remaining 45% may belong to you.
- Get the Required Documents:
Collect all the required documents and send them to the Department of Economic Development (DED) with the completed applications.
- Get a License and Pay Fees:
Obtain a trade license, Memorandum of Association (Moa), sharing certificates, lease agreement, support certificate, visas, staff cards, and other legal documents from the appropriate authorities.
The documents that need to be submitted to the DED and other authorities in the form of an LLC to be built in Dubai are as follows:
Top LLC formation in Dubai needs completed registration application form Passport copies for all shareholders and executives of the company Copy of local sponsor passport NOC from sponsor (if manager or partner has visa residency in UAE) Memorandum of Association Registration of a trading name from the DED Bank reference book for each shareholder Spatial plan and lease contract certified by the Dubai Municipal Planning Department and the Department of Community Safety.
All documents must be certified and certified in the country of the applicant and the UAE ambassador. The notarization process is time-consuming and should be done immediately after deciding on a business setup in Dubai.
Benefits of Limited Credit Company (LLC) in Dubai:
Elite business setup offers unparalleled access to the wider UAE economy. No small money is needed. Peal investors can run a business without the daily hassle of a local partner. This business organization is ideal for a business that wants to offer consulting services in the Emirati country as a trusted partner of a joint venture. The cost of construction of Dubai LLC depends on the type of work you choose for your business.
1. How do you build an LLC or continental company in Dubai?
A trade name is required to establish an LLC or continental company. The business owner/investor tor must obtain certain authorizations related to the products or services and the brand name. The Business Organization memorandum must be accompanied by the lease agreement and other documentation required by the DED. You also need certified documents from the RTA services in Dubai.
2. How little is the cost of building an LLC in Dubai?
A small amount of AED 300000 (USD 81,810) is needed in Dubai.
3. What are the benefits of starting an LLC company in Dubai?
Key benefits include
LLC can perform any type of business activity, excluding insurance, banking, and venture. There are no restrictions on the number of visas that can be obtained. Investors of the LLC Company can obtain an investor visa where they can acquire investors. LLC is exempt from paying a 5% general tax on imported goods. Also, no limitations are placed on home ownership.