When it comes to Mainland Company Formation, Limited Liability Formation in UAE is known to be one of the most developed business entities. There are three kinds of licenses to be issued for business setup in Mainland UAE, namely – Commercial, Professional, and Industrial license. However, LLC Company Formation in UAE provides more flexibility in contrast to the Free Zone companies in terms of employment, business location and promoting business, among other benefits.

What is LLC / Limited Liability Company? 

  • LLC stands for limited liability company (LLC) which will have at least 2 partners but will not exceed 50. Each partner will be liable only to the extent of his/her share in the capital. Partners’ shares are not represented in negotiable instruments.
  • The limited liability company (LLC) can conduct any legal business, except banking and insurance activities.
  • The company will not resort to the public subscription to form or to increase its capital or to get loans as well as it will not issue any negotiable shares or stocks
  • The company will have sufficient capital divided into equivalent shares, to be determined by its partners, so as to achieve the purpose for which the company is established. Such shares will be equivalent and indivisible.
  • Profits and losses will be equally distributed to shares, except the contract states otherwise.
  • The share of each partner will be transferred to his beneficiary and any party in the will have to be treated as a beneficiary.
  • A Limited Liability Company can be managed by 1 or more managers to be selected from the partners or by any other parties, given that they don’t exceed a total of 11 individuals.
  • Manager(s) will be appointed under the Memorandum of association (MOA) or a separate contract for an indefinite/definite term. But if the managers are not appointed as stated above, the General Assembly will appoint them.


Who is eligible to set up a limited liability company formation in UAE (LLC)?

  • UAE, as well as GCC nations, are eligible to set up a Limited Liability Company.
  • Nationals of other countries can establish a limited liability company (LLC) to conduct industrial, professional, commercial or tourist activity, yet there must be 1 or more UAE partners as well as their share(s) must not be less than 51% of the paid-up capital.
  • A company which is incorporated inside or outside the UAE shall establish a limited liability company to conduct industrial, professional, commercial or tourist activity, given there must be one or more UAE or GCC partners and also their share(s) must not be less than 51% as well as the partners of the company should be UAE nationals.

Which activities are listed under a limited liability company in UAE (LLC)? 

All industrial, commercial, and tourist activities and also most of the professional activities, excluding consultancies that shall require the approval of the competent authority regulating such activity.

What are the documents required for establishing a LLC company formation in UAE? 

  • Passport size picture is required with a white background.
  • Passport copy of the shareholders.
  • Tourist visa or residence visa with an entry stamp.
  • CV.
  • Business plan.
  • Utility bill of the shareholders.
  • Tenancy contract.
  • Local partner passport copy.
  • Emirates ID of the local partner.
  • Family book of the local partner.
MSZ Consultancy for business setup in UAE:

If you are looking to set up a Limited Liability Company in the UAE, We at MSZ consultancy are here to assist you from the beginning to the end. If you have further questions related to the Limited Liability Company, please email us at info@mszconsultancy.com


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