LLC Company Formation in Dubai, UAE: Step-by-Step Guide

Easy Steps to Start Your Limited Liability Company

Many entrepreneurs have a dream to start a business in Dubai. Among the different company structures available, a Limited Liability Company (LLC) is the most widely chosen. It is not complicated, pliable and offers good protection to the investors under laws.

At company setup consultants, we specialize in guiding entrepreneurs through the process of LLC company formation in Dubai, UAE. Our team makes sure that there is nothing left to do except the paperwork, approvals etc. so you are left to develop your business.

What is an LLC in Dubai?

A Limited Liability Company (LLC) is a business structure that can have between two and fifty shareholders. The liability of each shareholder is only restricted to the contribution he or she made to the company and this implies that the personal assets of the shareholder are not prone to losses.

The reason why entrepreneurs choose LLCs in Dubai is that:

• The current laws permit 100 percent foreign ownership.
• Capability to trade within the UAE and GCC.
• Adaptability in management and profit sharing.
• Extensive business operations to select.

The safety and flexibility of LLCs make it the best among start ups, SMEs and even foreign companies.

A Limited Liability Company (LLC) is the most commonly chosen business structure in the UAE. It requires a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their shares in the company’s capital. This means that shareholders enjoy personal protection from liabilities under the business laws in Dubai.

Benefits of LLC Company Formation in Dubai

By creating LLC in Dubai you get:

• Complete foreign share ownership.
• Liberation of profits between partners.
• Infinite work visa to employees.
• Large market penetration in the UAE and GCC.
• Shareholders: Personal protection by the law.
• Basing in several office spaces in Dubai.

Cost of an LLC Company Formation in UAE

The establishment cost of LLC depends on your business operation, office site and approvals. Here’s a breakdown:

Initial Costs Trade name reservation, initial approval and license issuance.

• Package Options– Basic to premium packages, based on your needs.
• Annual Renewals– Annual office rent, annual renewal of employee visa and annual renewals of annual commitments.
• Industry Variances – Certain industries such as healthcare or finance are subject to additional licensing and this impacts on costs.

We do not offer any hidden costs and offer clear and transparent prices at Company setup consultants.

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Step-by-Step Process for LLC Company Formation in Dubai

Starting a LLC Company in Dubai: Step-by-Step Guide

Step 1: Choose a Business Activity

Dubai welcomes over 2000 business activities under such categories as commercial, industrial, professional, tourism, and agriculture. The choice of the activity is critical since it is on the basis of it that you will receive your trade license. Our consultants assist you in choosing an activity that fits your vision and meets the UAE law.

Step 2:Reserve and Approve a Trade Name

Your business should possess its own trade name which should be descriptive of the activity you are engaging in. It is not to be in contradiction with registered names existing and must be observant of the UAE public morals. After passing through the Department of Economic Development (DED), your name will bear the initials LLC.

Step 3:Obtain Initial Approval

The first is the approval by the UAE government that there is no opposition to your business. Although this does not enable you to start yet, it is a significant move prior to writing agreements and renting an office.

Step 4: Draft the Memorandum of Association (MoA)

The MoA provides information on such aspects as the positions of shareholders, the allocation of profits and the work of the company. It should be notarized and handed over along with other supporting documents like Articles of Association (AoA) and Power of Attorney (PoA). We have a legal department that makes sure that your MoA is in order and safeguarding your interests.

Step 5: Secure a Business Location

All LLCs should possess physical office in Dubai. You have an option of leasing or buying the space as per your needs. Lease contract needs to be registered with Ejari, the property management system. We can help you locate the best places which are affordable to your business.

Step 6: Get Additional Approvals (If Required)

There are business activities where federal or local authorities must give special permissions. For example:

There are businesses that might require the Central Bank permission, which are related to finance.

• Legal consultancy: This has to be approved by the Legal Affairs Department.
• Security business: Businesses that involve security ought to be cleared by the security authorities.

These approvals are co-ordinated by our team to prevent delays.

After Your Business Commences:

• Fit Out Your Office: Set up and furnish your office space according to your business requirements.
• Employee Registration: Register your employees with the Ministry of Labour and the General Authority for pension and social security.
• Legal Document Processing: Complete the necessary paperwork for visas, labor cards, and other legal documents.
• Publication of MOA: The LLC’s Memorandum of Association is published in the Bulletin of the Economy and Commerce Ministry.
• Bank Account Opening: Open a bank account for your business operations.

Embark on your entrepreneurial journey with confidence, as this step-by-step guide simplifies the LLC company formation process in Dubai, ensuring a smooth and efficient setup for your business.

Step.7 Submit Documents and Pay Fees

After all approvals and attestations are made you present the documents to DED and pay the licensing fees. Once this is approved, you will be issued with your trade license and your LLC is now ready to start business.

Documents Needed for LLC Setup in Dubai

When initiating the formation of an LLC in Dubai, UAE, whether through a company formation agent or by directly submitting the application, the Department of Economic Development (DED) necessitates specific documentation and basic information. The requisite documents for LLC formation include:

In this case, the following is what you will require to get registered:

• Copies of passports and visa of all the shareholders.
• No Objection Certificate (NOC) of UAE citizens working in other places.
• Bank reference letters and statements.
• Company shareholders are certified corporate documents.
• Articles of Association (AoA) and Memorandum of Association (MoA) which are notarized.

The documents of foreign shareholders should be notarized in their land of residence and re-attested by the UAE Ministry of Foreign Affairs. We have professionals undertaking the end to end process of attestation.

Common Challenges in LLC Company Formation (and How We Solve Them)

Complicated paper work – Our professionals deal with the paper work.

Fuzzy laws → We offer professional advice on the UAE laws.

Slowness in approvals → Our connection to government officials accelerates the process.

Selecting the proper place of location → We assist you in getting cheap office space in good business areas.

company setup consultants will be by your side which makes the establishment of your LLC hassle free.

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Frequently Asked Questions About LLC Company Setup in Dubai

How do I start an LLC in Dubai?

Establishing an LLC in Dubai involves a straightforward, step-by-step procedure:

1. Determine the desired business activity.
2. Register the trade name for the company.
3. Obtain initial approvals from relevant authorities.
4. Prepare the Memorandum of Association (MoA) and any necessary agreements.
5. Select a suitable location and workspace for operations.
6. Apply for additional government approvals as required.
7. Submit the requisite documents and fulfill fee payments to complete the process.

These steps outline the process of initiating an LLC company formation in Dubai.

How much does it cost to open LLC company in Dubai?

Registering a Limited Liability Company in Dubai costs between AED 20,000 to AED 30,000, with fees varying based on industry and services. Investor visa expenses range from AED 4,000 to AED 5,500.

What is an LLC License in UAE?

If you want to setup a Limited Liability Company in UAE, then you must obtain the LLC License in UAE. The business trade license in the UAE allow you to perform your business activities legally inside and outside the country.

In addition, obtaining a business trade license is one of the main steps of starting business in the UAE. As a result, obtaining the LLC license is crucial if you want to setup a LLC company in UAE.

Where do I Register my LLC in Dubai?

If you want to setup a LLC Business in UAE, then you need to register it from the Department of Economic Development in Dubai. This is because the Department of Economic Development in Dubai is responsible for handling the registration of any new business in the mainland.

If you want to setup a Limited Liability Company in Dubai free zones, then you will have to register it from the respective authorities of the free zone you have in mind.

How can I Open a Limited Company in Dubai?

The steps needed to setup a Limited Liability Company in Dubai require you to obtain the business trade license in Dubai. To clarify, when applying for the license from the Department of Economic Development in Dubai or one of the free zone authorities, you will need to select the company structure of your business.

After that, you will need to select the Limited Liability Company structure.

How Many Partners can an LLC have in Dubai?

An LLC (Limited Liability Company) in Dubai can have a minimum of 2 partners and a maximum of 50 partners.

How long does it take to form an LLC in Dubai?
Normally, it can take 1-3 weeks based on approvals and documentation.

Can I own 100% of my LLC as a foreigner?

Yes. According to the new UAE regulations, foreign investors are now allowed to own their LLC 100 percent.

Do I need a local sponsor for an LLC?

No. Previously a local sponsor was needed, although this is not the case anymore with most activities.

Can my LLC operate across the UAE and GCC?
Yes. The LLC license will enable you to trade not only in the UAE but also in the Gulf

Do I need a local sponsor for LLC in Dubai?

When establishing an LLC company in Dubai, it is a requirement for expatriates to have a local sponsor who is a UAE national. The local sponsor must hold 51% ownership of the company, while the expatriate can hold 49% ownership. This arrangement ensures compliance with the legal framework for foreign ownership in the UAE.

What is the cheapest LLC license in Dubai?

The most economical LLC license in Dubai is priced at AED 12,900, covering the trade license, three business activities, and a lease agreement.

What is the benefit of LLC in UAE?

An LLC in the UAE brings the benefit of unrestricted provision of goods and services nationwide. Moreover, the unique advantage lies in the absence of government-imposed minimum capital requirements for setting up your business.

Why Choose company setup consultants for Your LLC Setup in Dubai?

The company setup consultants is an established company that deals with entrepreneurs and investors since it has years of experience in firm formation in Dubai. We offer:

• Full-service beginning to end.
• Docs and expedient approvals.
• Clearity of prices and customized packages.
• Legal and business advisory services by experts.

Our mission is to make your LLC company formation in Dubai as seamless as possible so you can focus on growth.

How can Company Setup Consultants help you?

If you are going for an LLC company formation in Dubai but do not know where to get started, then you are in the right place. Our experts have started Limited Liability Companies all over the UAE for various entrepreneurs and corporations from all over the world. Contact us today and hit the ground running.

For further information and assistance on how to register your LLC company in Dubai and the UAE. To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.