Requirements for LLC Company Formation in Dubai
If you want to run an LLC company in Dubai, the first question that arises in your mind is how many shareholders are required for an LLC company formation in Dubai? It can be formed with the help of a minimum of 2 and a maximum of 50 shareholders. If there is one owner, it is recognized as a single member LLC; on the other hand, if more than one person is involved in an LLC, it is known as multi-member LLC. Keep one thing in mind, the liability of shareholders are restricted to their own funds in the company capital. Dubai LLC companies are bound to carry out some business activities like insurance, banking or business investment.
LLC company formation in Dubai needs an Emirati local sponsor or sleep partner with 51% of share in this company and an expat will reserve 49% of the share. After all legal procedures, the silent partner will sign a contract in the court that he/she has no participation in the company.
For all those who are interested in LLC setup in Dubai, here is the complete information about how they can form an LLC and what documents are prerequisite for LLC company formation in Dubai.
Here at Arab Business Consultant, we have a team of business setup experts who can guide you to choose the best options on the basis of your requirements.
Here at Arab Business Consultant, we have a team of business setup experts who can guide you to choose the best options basis your requirements.
What are the benefits of LLC Company Formation in Dubai?
- The owners of LLC companies are not accountable for LLC’s debt or law proceedings in Dubai.
- All LLC’s owners directly receive their profits and later, they mention their share of the profits to their individual tax returns. In LLC, profits are just taxed once and it is identified as pass through taxation. On the other hand, the case is completely different in C – corporation where profits are taxed twice. This taxation process is done before profit distribution to owners and later when the owners inform about their profits to their individual tax returns.
- A little paperwork is required for LLC setup in Dubai as compared to S – corporations and C – corporations. LLC is not subject to typical office activities like annual meetings; keep a record of company minutes and resolutions.
- Somehow, there are few precincts that you need to follow when you are going to structure the management and ownership of an LLC company in Dubai. It is your choice to form an LLC that can be handled by its members or by managers who are selected by the members.
- Including LLC in your business name gives a clear perception to your customers that you are a reliable and serious business entity.
- Once, you agree for LLC company setup in Dubai, it means your business can create a credit history. You will be able to access lines of credit and business loans.
Why Arab Business Consulting?
Arab Business Consultant is always completely transparent when providing our clients with the details related to LLC business setup in the UAE. A large part of this is simply ensuring we offer the flexibility to provide you with the exact package that suits your needs, for instance, it can be Trade license (single owner), trade license with two or more than 2 shareholders, visas for employees or dependants. We will help you to select the option precisely you need so that you pay for what you get.
LLC Company setup requirements:
- Select accurate legal procedure for your business.
- Decide proper location for your LLC Company Formation in Dubai.
- Select an appropriate name and activities implicated in your application form.
- Arrange and submit the necessary documents to the UAE Department of Economic Development to get the license.
- Find Warehouse /Virtual office/ office land for running operations of the LLC company in Dubai.
- Get permission from relevant government departments and regulatory authorities to carry out some specific business activities.
- Acquire Certificate of Incorporation, Share Certificates, Trade License, Memorandum of Association, and Occupancy Agreement.
- Labor card, processing visa and other official documents for LLC Setup in Dubai are required.
Packages - LLC Company Formation In Dubai
Fees for Formation of Limited Liability Company in Dubai (LLC Dubai Estimated Cost)
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- For normal trading company chamber of commerce fees is AED 1200 per year and in case of an industrial company fees comes to AED 2200.
- For normal trading company waste fees for municipality is AED 1000 per and in case of an industrial company fees is to AED 2000.
- For foreign trade name there is an extra fees of AED 2000 per year.
- For the formation of General trading company one-time fees of AED 15,000 is required.
- For Contracting License one time fees of AED 10,000 is required.
- For Real Estate Brokers Company fees for Economic Department of AED 5,000/- is required.
- 5 % of Amount premises rent to be paid to Government. It is added once the annual office rent is determined
5 % of Amount premises rent to be paid to Government. It is added once the annual office rent is determined
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- Passport Copy
- 2 Photos
- Time Taken (approximately 3-4 Days)
Employment Visa Cost Breakup (Estimated Cost)
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- UAE national or a GCC national must be a local sponsor. A 100% UAE Company can also be a sponsor.
- All above mentioned cost is approx. cost, the cost can be changed as per
Required Documents for LLC Company Formation in Dubai
Documents required for Initial Approval
- Registration and licensing application, as well as proof of reserved trade name.
- Photocopy of applicant’s passport (together with residence permit / visa details for non-GCC states nationals).
- For UAE nationals Photocopy of applicant’s naturalization identification is required.
- No-objection letter from the applicant’s current sponsor for non GCC nationals.
- Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
- For applicants under 21 years permission from the court is needed to practice business.
- Issuance of approval by other Government authorities according to the type of activity. If the partner is an existing corporate entity in UAE or abroad then The Company’s Board of Directors resolution is needed to subscribe to the new company (the resolution must be attested by consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic/UAE embassy/ consulate or by a GCC state embassy).
Documents required after getting the Initial Approval
- Initial Approval receipt.
- All documents submitted before in order to get the Initial Approval.
- For the Office/warehouse tenancy contract must be attested by planning department and civil defense department of Dubai municipality along with location plan.
- Original photocopy of the Memorandum of Association duly authenticated by the Notary Public. Contract of Limited Liability Company.
- The Memorandum of Association and the Commercial Register Certificate must be attested by consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic /UAE embassy / consulate or by a GCC state embassy) If the partner is an existing corporate entity in UAE or abroad.
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