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
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
What is a Trade License? Dubai is home to one of the largest and most complex business markets in the world. It offers a boundless array of business opportunities and benefits that draw thousands of investors to the region each day. With comprehensive incentive plans...
What is an FDI? Foreign direct investments, or FDIs, are business investments made by a company or individual located in one country for business interests in another. This often occurs when a business entity acquires assets originally belonging to a foreign company....
Business Liquidation: An Introduction Despite being home to one of the most hospitable business environments globally, businesses in Dubai can still fail. Sometimes this occurs due to unforeseen circumstances like falling demand for certain products, recessions, or...
The Golden Visa: An Overview In 2019, the United Arab Emirates, in a bid to draw in foreign residents and expand businesses in the region, implemented a new 5 or 10 year residential visa system to allow foreign owners to work, live, and study in the UAE without the...
IFZA One of the Leading Free Zones in the UAE IFZA, or The International Free Zone Authority, remains one of the most cost-effective solutions for business setup in the UAE. Their focus on hosting a wide variety of business activities under a single license while...
The United Arab Emirates (UAE) has been a bastion for businesses for decades, with thousands of companies flocking to the region to conduct business. And despite the effects of the pandemic, the rate of growth is expected to pick back up in 2021. There has never been...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news