Over the past decade, Dubai has emerged as one of the top business destinations in the world and magnetizes millions in LLC Company Formation in Dubai. Dubai has perpetuated to be a favorite location for investors around the world for Company Formation- LLC as it remains tax free and diverse in its policy. Most of the investors prefer to setup Constrained Liability Company or LLC Company formation in Dubai.
The Dubai LLC Company can be formed with minimum of 2 and a maximum of 50 shareholders and the liability of shareholders are limited to their own share in the company capital. The Dubai LLC Companies are restricted to perform some kind of business activities like banking, insurance or money investment.
LLC COMPANY SETUP PROCEDURES
- Choose appropriate legal structure of the business
- Select the name and the activities involved in your application.
- Choose proper location for your llc company formation.
- Compile & Submit the required document to get the license from Deportment of Economic Development of UAE
- For some special business activities, get approvals from relevant regulatory & Government authorities.
- Get office / Virtual Office/ Warehouse / Land for the company formation operations
- Obtaining Trade License, Certificate of Incorporation, Memorandum of Association, Share Certificates, Tenancy Agreement for your LLC Company Setup
- Processing visas, labour cards and other legal documents
REQUIRED DOCUMENTS FOR LLC COMPANY FORMATION IN DUBAI
- Investor’s passport copy
- Local Sponsor’s passport copy
- Manager’s Passport copy
- NOC letter from the sponsor if the partner or the Manger has a residence visa in the UAE
- Registration application form from Dubai Economic Department
- Trade name reservation
- Initial approval from Dubai Economic Department
- Tenancy contract for the Office/warehouse attested by planning department and civil defense department of Dubai municipality along with location plan
- Memorandum of Association duly attested from public notary
LOCAL LIMITED LIABILITY COMPANY
A LLC is incorporated outside a freezone. LLCs can be formed with a minimum of 2 and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. The capital requirement is AED300,000.
Characteristics for Commercial or Trade licenses:
- 51% local partner (known as sponsor) – A side agreement is put into place in order to protect the foreign owners of the company. Side agreements between local partners and foreign owners have recently been accepted and ratified by the UAE courts stating that the local partner was offering a service in exchange of an agreed annual fixed fee.
- No requirement to file annual accounts
- No audit requirements (unless the business is sold or liquated).
PROFESSIONAL SERVICES OFFERED THROUGH LOCAL LIMITED LIABILITY COMPANY
For certain activities falling under professional services such as Management Consultning, Business Services and other professional services it is possible
to incorporate a company with 100% foreign ownership. A local agent is required to act on behalf of the company but he is not a shareholder of the company.
Foreign companies as well as freezone companies can establish a branch office in the UAE through which they can service the local market after paying an import duty. A local service agent is required. In this instance a UAE national has to act as the local agent of the company. The agent has no involvement in the shareholding or management of the company
This facilitates a company to keep 100% ownership of the entity in the UAE, however a local UAE agent is still required in order to set up the branch. A branch of a foreign company is possible only for professional activities. Commercial activity companies cannot form a branch in Dubai.
If the scope of the activities in the UAE is limited a representative office can be considered. Such representative offices undertake marketing and promotional activities only and are not permitted to trade. A local service agent is also required.
WHICH ENTITY TO CHOOSE?
With our professional experience in the field for over 10 years and the positive feedback from our clients worldwide, we consider ourselves specialists on corporate and tax planning. We can assist you on every step of the way to set up your new business or expand in Dubai and the UAE.