Setting up a new business in Dubai surely opens the door to global market exposure and several benefits for entrepreneurs and millennials. One of the most common chosen structures by a large number of entrepreneurs is Limited Liability Company (LLC).
What does LLC mean?
As the name implies, Limited Liability Company is a structure of a business in which the members of the company are not personally liable for any loss. The members are only liable to the company’s capital share. It is a blended structure as it incorporates a few features of a corporation and others similar to a partnership entity. Therefore, LLC provides you with the best of both worlds.
Why should I set up an LLC?
Since there are different business structures to choose from (Sole Proprietorship, LLC Foreign Branch, etc.), it is important to know how an LLC option is better or beneficial option for investors, startup owners, and entrepreneurs.
Here are a few Reasons of Choosing LLC option:
- The most evident reason is the protection from personal liability. In debt and court ruling cases, the company members are liable to pay only according to their shared capital. Thus, it saves the company members from paying or losing any personal asset.
- It needs less paperwork compared to other options. It has less strict requirements that a company needs to follow, with no requirement to hold annual meetings or submit annual reports. As a result, you have to get involved in a few legal concerns.
- LLC has no restrictions on the number of shareholders. An LLC is allowed to have an unlimited number of shareholders and this serves as a great benefit when it comes to growing and expanding business.
- LLCs have the freedom to choose the tax status of any business structure (S Corporation, C Corporation, Partnership, or Proprietorship) and can also avoid the hassle of double taxation. That’s why LLCs are considered the best entities when it comes to tax benefits.
- An LLC can have more than one owner, and therefore, if it has multiple owners, the profit can be distributed based on equality criteria, ownership percentage, or any other ratio.
LLC Setup in Dubai is continuously gaining popularity because of the business opportunities available and incredible support offered by the Dubai government.
A Quick View of Advantages of LLC Setup in Dubai
- A minimum of 2 and a maximum of 50 shareholders are permitted to appoint
- No restriction on number of visas
- Freedom to have a real estate ownership
- Freedom to conduct any commercial or industrial activity apart from investment, banking, and insurance
- Benefit of trading directly with the whole UAE market
- Easy to open global/corporate bank account on the LLC basis
All these benefits make Limited Liability Company (LLC) a preferred choice among entrepreneurs, startup owners, and investors. Contact us to learn more about the LLC business setup in Dubai or anywhere in the UAE.