LLC Setup in Dubai

How LLC Setup in Dubai is a Good Business Option


Among the different business structures and holding patterns, LLC is regarded as the least in terms of complexity. By virtue of being a limited liability, the structure offers protection to the personal assets of entrepreneurs.  By dispensing with the need for residency, LLC makes it convenient for businesses to establish presence in white label destinations like Dubai and avail all benefits and sops. LLC setup in Dubai offers a combination of benefits – one is the advantage of the structure of an LLC company, and the other is the number of sops offered to businesses that establish presence. Here is a granular look.


Why LLC is ideal for foreign partnerships?

Among different holding patterns, LLC offers maximum ownership rights, to the tune of 49% of ownership of a business to a foreign national. The other 51% ownership will rest in the hands of a local sponsor who will have to be a UAE national. While the holding pattern is 51:49, the profit sharing agreements between the foreign owner and the local sponsor can be flexibly arrived at through consensus. This helps entrepreneurs to have control over the profit sharing agreements, while fulfilling obligations and regulations. The limited liability model ensures that the liability is proportionate to the holdings in the business entity.


Standout benefits of LLC setup in Dubai

There are multiple benefits that accrue from setting up a company in Dubai, especially the LLC model. Some of the standout benefits include :


  • The ability to share profits and loss in a flexible manner as agreed upon mutually. This is despite the shareholding pattern of 51:49. The ration of shareholding need not necessarily be the ratio for share of profit or loss. This makes it attractive to stakeholders.
  • The ability to setup a business without the need for fulfilling minimum capital requirements.
  • All assets get to be registered in the company’s name and not in favour of the local partner. The local partner only holds shares to the extent of 51%, while the assets remain in the entity’s name.
  • This offers businesses greater flexibility to invest or use funds for operational requirements.
  • Investors get to become shareholding partners in the established entity. By virtue of investing in the setup, individuals receive investor visas which permits the investors alongwith family to reside in the UAE as an investor.
  • Investors retain operational control of the business, which insulates the business from the control of the local partner in terms of operational aspects.
  • Investors also get to expand business through the opening of branches.
  • Access to credit facilities and ease of opening and operating corporate bank accounts.


These options make LLC the most popular among company formations in Dubai.


Time take to setup LLC and services of experts

It typically takes lesser than 14 days for setting up a LLC in Dubai. Expert consultants offer services that include identification of local partners, assistance in sourcing equity, handling all regulatory requirements and assistance in opening accounts. This makes it easy for entrepreneurs to quickly set up a LLC in Dubai and commence operations.