LOCAL LIMITED LIABILITY COMPANY
The Emirate of Sharjah is the neighbouring Emirate where many industrial, and light manufacturing companies establsh. It is only 30 min from Dubai and rental prices of accommodation, indutrial land and offices make the emirate a very attractive proposition.
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:
In the Emirate of Sharjah it is possible to incorporate a local company with any activity with a 100% shareholding. This is one of the reasons many foreign companies choose to incorporate a company in Sharjah.
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.
It is possible to establish a branch of a foreign company in the Emirate of Sharjah as well. A common set up is also to Establish a Sharjah company and then form a branch in Dubai if the company wants to have a presence in Dubai as well but would like to keep 100% foreign ownership.
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.