Today, entrepreneurs have different options when it comes to setting up a business in Dubai. There are various types of business structures to opt for and any of them may benefit investors depending on their total investment and liking. But, one such business structure opted by a large number of entrepreneurs for its great advantages and few risks is Limited Liability Company or LLC. An LLC can be formed by a minimum of 2 and a maximum of 50 shareholders.
One of the major reasons why most of the foreign investors opt for this business structure is because an LLC is the only option that offers maximum legal ownership with 49% to an immigrate for a local business. However, since it is compulsory to have a UAE national as a partner when setting up an LLC, the investor has an option to select one UAE national or sponsor as their partner in the company.
But how do you set up your LLC in Dubai? What steps are involved in the procedure?
Below are the steps that you need to follow to register an LLC in Dubai.
- First of all, obtain approval for your business activity and name from the Department of Economic Development.
- Draft and notarize your business’s Memorandum and Articles of Association.
- Get an office tenancy in your finalized location and get it attested by the Real Estate Regulatory Agency.
- Obtain required approval from the Dubai Municipality Planning Department.
- Next, you need to submit your business license application form and all the required documents with the Department of Economic Development.
- After the evaluation by the legal department, your company name will be entered in the Commercial Register and the Memorandum of Association will be published in the Ministry of Economy Bulletin.
- Once published, the Department of Economic Development will then issue your business license.
- Get your company name registered with the Ministry of Labor and Department of Immigration.
- And finally, register your company with the Dubai Customs Department and issue the customs code.
What documents are needed for the setup?
Several documents need to be submitted in DED, and various other authorities depending on the type of LLC you are forming.The documents required must be carefully attested and notarized from your home country, as well as, the UAE consulate.
The following are the important documents required for LLC set up:
- Passport copies of all the managers and shareholders of the company
- Filled registration application form
- Passport copy of the local sponsor
- Memorandum of Association attested from the public notary
- NOC from the sponsor
- Attested tenancy contract and location plan
- Initial approvals from the DED
- Registration of trade name
- Bank letter for each shareholder of the business
Once the above-mentioned steps are followed, and all the documents required are submitted, you receive your business license. Upon receiving a business license, you may start operating your business services.
