LLC COMPANY DUBAI
Important Things to Know About Forming an LLC Company Dubai
Limited Liability Company (LLC) is the most common form of business in Dubai, especially for those who are looking for mainland company formation. An LLC Company Dubai can be formed by a minimum of 2 and a maximum of 50 shareholders. The liability of a shareholder is limited to the shares he/she holds in the business capital. When you are exploring business opportunities in Dubai, then you must look at the option of forming an LLC Company Dubai. Here, we would take a look at some of the things that you must when you are looking to form such a company
Requirement of Local Agent for LLC Company Dubai
If you are an expat planning to establish an LLC Company Dubai, then you would need to get a local agent. According to the laws of UAE, 51 % of the business will be owned by the local sponsor. Hence, choosing the right partner is crucial. Local agents usually act as ‘sleeping’ partners. This means that they would not make any investment and they won’t be involved in the running of your business. However, they can help you deal with ministries and the government. This helps in dealing with the paperwork.
The Advantages of Starting an LLC Company Dubai
What makes forming an LLC Company Dubai one of the most preferred business types in UAE is the great deal of flexibility it provides. An LLC company Dubai can trade anywhere in UAE and GCC, without facing any restrictions that a free zone company usually faces
Some of the biggest advantages of forming an LLC Company in Dubai are as follows
- Quick and easy setup:Forming an LLC Company Dubai is extremely easy. In many cases, it is easier to start an LLC than setting up company in a free zone. In fact, new initiatives have made the setup process so easy that, if you meet the requirements, your LLC Company Dubai could be registered with the Dubai Department of Economic Development (DED) within just 90 minutes, without even having to commit to a lease agreement1
- Affordable company formation: The cost of forming an LLC is almost the same as setting up in a free zone, if not lower. The starting price for license applications is around AED 17,000 and, the entire costs are unlikely to rise above AED 100,000, depending on the size of your business.
- Opportunity to apply for multiple visas:an LLC Company in UAE mainland allows entrepreneurs to apply for practically unlimited number of visas. The only thing is that the number of visas that you can apply would depend on the size of the office space you have. The general rule of thumb is that you can apply for a visa for every 100 sq. ft. of office or warehouse space. For example, if you have a 1000 sq. ft. office, then you can apply for 10 visas. However, in some cases, the rules are not that way. For example, you might have a company which may have 100 employees working remotely. In such cases, you don’t need to have10,000 sq. ft. of office space.
Setting up your LLC company Dubai
Now, the question is how do you set up an LLC Company Dubai on the UAE mainland?
The first few steps are relatively simple to understand. You need to choose a business activity and reserve your company name. A list of permitted business activities is available from the DED, and you need to choose from there. You can simply choose the one that best suits your business.
When it comes to choosing a name for your LLC Company Dubai, there are a few things to keep in mind. For example, any offensive language is forbidden. Your company name cannot contain religious references, or even references to any known organizations. If you are looking to use your personal name as your company name, then both first name and last name are required.
As said before, you would need a local sponsor by any foreign investor wishing to set up LLC Company Dubai. Local sponsors should own 51% of the business with the other 49% owned by you, the investor. However, profits are not divided according to this ratio. The full control almost always remains with the foreign investors as well. So, there is nothing much to worry about. The local sponsors must be professionals, business owners or government employees and most importantly, citizens of the UAE. Finding such a professional can be challenging. Therefore, it is advisable to engage the services of a company formation specialist for finding a suitable local sponsor.
The next stage of process of forming an LLC Company Dubai is to apply for your license. For doing that, you need to provide the DED with the following documents:
- The license application
- The Memorandum of Association (MOA), detailing the sponsor arrangements and ownership share among all partners
- The Certificate of Incorporation (if one or more shareholders are corporates)
- The Board Resolution approving the LLC
- Copies of shareholder passports and visas
When you are forming your LLC Company Dubai, you can also apply for your immigration card or any additional visas that may be required at the same time.
That’s all there is to it! The entire process of forming LLC Company Dubai is usually complete in a matter of weeks. Once you receive your license, you will be ready to open your corporate bank account and set up your LLC Company Dubai or anywhere in the UAE mainland. You can get the help of Arab Business Consultant as they have a proven track record of helping entrepreneurs from across the world to form UAE mainland companies. So, get the help of the leaders and form your LLC Company Dubai with confidence.
