What’s LLC Company Formation In UAE?
A mainland LLC (Limited Liability Company) formation in Dubai is a conventional kind of business setup that provides you the opportunity to trade anywhere within the Dubai & UAE, the extended Gulf Cooperation Council (GCC) states.
It is believed that 51% of shares of Mainland LLC are reserved to local sponsor while the foreign owner will get 49% of shares of the company (while profits can be distributed differently).
The Mainland LLC formation in Dubai can be formed with a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their share in the business capital.
Significant Steps for setting up a Mailand LLC in Dubai
- Passport copies of all the shareholders, sponsor and also managers
- NOC from the sponsor if the partner or manager has a residence visa in UAE
- Registration application form
- Registration of Trade name
- Initial approval from the DED
- Memorandum of Association (MOA) (duly attested from the public notary)
- Bank reference letter for each shareholder
- Location plan and tenancy contract attested by Dubai Municipality’s Planning Department and Civil Defense Department
Procedure to setup an LLC in Dubai
- Choose the proper legal type of your company
- Select the unique name and the activities involved under the company
- Choose an appropriate location that suits you according to the type of your business activity.
- Gather all the necessary documents and also submit them to the Department of Economic Development (DED)
- Get approval from relevant regulatory and government authorities (in case your business will conduct specific activities)
- Obtain a Trade License, Certificate of Incorporation, Memorandum of Association (MOA), Share Certificate and Tenancy Agreement from relevant authorities
- Get visas, labor cards, and other legal documents
Advantages of Setting Up an LLC in Dubai
- Less paper-work required for the formation of an LLC (no need to hold annual meetings and also file annual reports).
- Freedom to employ number of shareholders in an LLC.
- Companies can also avoid double taxation
- LLC may conduct any type of business activity excluding insurance, banking, and also investment
- The investors of an LLC enjoy investors visa
- Easy to open corporate bank accounts and also avail credit facilities
- No restrictions on real estate ownership
- LLC can also have one or more owners
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