A Limited Liability Company (LLC) is a commercial business entity that can have up to 50 shareholders. For expatriate residents and foreigners looking to establish a company in the UAE, an LLC is often the preferred and easiest legal option. Due to its simplicity and popularity, LLC formation is commonly chosen by many.
Having a grasp of the fundamentals of LLC company formation in Dubai can streamline the process, making it more efficient and straightforward for entrepreneurs.
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What is Limited Liability Company?
Limited Liability Company (LLC) stands as the predominant choice for business setup in Dubai and the UAE mainland. It serves as an independent legal entity owned by multiple shareholders and operates within the UAE mainland jurisdiction. With relatively low initial costs, an LLC offers full access to the expansive UAE market. It enables essential functions such as opening a bank account, obtaining a tax identification number, and conducting business operations under its own name in Dubai. This makes it an attractive choice for both new entrepreneurs and seasoned business professionals alike.
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.
Key advantages of LLC Company Formation in Dubai, UAE
Here are the key features of LLC company formation in Dubai:
- Flexibility in shareholder count, allowing up to 50 individuals.
- Limited liability for each shareholder, confined to their respective shares in the company’s capital.
- Ability to conduct trade across the UAE, including over 50 free zones, as well as within the GCC region.
- Unlimited availability of work visas for employees.
- Multiple options for renting or purchasing office spaces.
- Foreign shareholders enjoy 100% ownership of the company.
Cost of an LLC Company Formation in UAE
The cost of an LLC Company Formation in UAE typically falls between AED 20,000 and 30,000. However, these fees may vary based on the industry sector and specific services required.
For an accurate and customized quotation tailored to your unique needs, reach out to Company Setup Consultants. By contacting them, you ensure that you receive an up-to-date price aligned with the specific activities you intend to pursue. This personalized approach guarantees transparency and accuracy in determining the costs associated with your LLC company formation.
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How to Open an LLC Company Formation in Dubai, UAE?
Starting a LLC Company in Dubai: Step-by-Step Guide
Step 1: Choose a Business Activity
Explore the diverse business activities listed by the Dubai Development of Economic Department and select the one that aligns with your preferences. Our experts can assist you in determining the most suitable business for your needs.
Step 2: Reserve Your Company Name
When selecting a company name, adhere to specific criteria. Offensive words and religious references are prohibited. If using your personal name, both the first and last names are required.
Step 3: Apply for Initial Approval
Following the approval of your chosen company name, apply for an initial approval certificate from the Dubai Department of Economic Development (DED). Once approved, your company will be entered into the commercial registry.
Step 4: Prepare MOA & LSA Agreement
To formalize your Dubai LLC, draft and sign a Memorandum of Association (MOA), which should be translated formally and attested by a Notary Public. For a professional service license, sign a Local Service Agent (LSA) or corporate agent agreement with a UAE national.
Step 5: Find the Perfect Location
A business office is mandatory for LLC company formation in Dubai. Choose a location anywhere in the UAE and have your rental contract attested by Ejari, the essential registry of tenancy contracts, for trade license application.
Step 6: Collect Your Trade License
Submit all required documents to the Dubai Economic Department. If you meet all requirements, you will receive your Trade License, Certificate of Incorporation, Memorandum of Association, and Share Certificates for your company.
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.
Documents Required to Start an LLC in Dubai, UAE
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:
- Investor’s passport copy
- Local sponsor’s passport copy
- No Objection Certificate (NOC) if the shareholder is employed in a UAE company
- Copy of Emirates ID
- Registration application form from the DED
- Attested tenancy contract for office premises
- Attested Memorandum of Association from a public notary
It is important to ensure that all documents are properly filled out, signed, and notarized where required. Additionally, be prepared to provide any other documents or details as requested by the DED during the application process.
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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:
- Determine the desired business activity.
- Register the trade name for the company.
- Obtain initial approvals from relevant authorities.
- Prepare the Memorandum of Association (MoA) and any necessary agreements.
- Select a suitable location and workspace for operations.
- Apply for additional government approvals as required.
- 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.
What is the difference between an Ltd and LLC?
The main difference between an Ltd (Limited Company) and an LLC (Limited Liability Company) lies in their legal structures and the level of liability protection they offer to their owners. Here are the key distinctions:
a). Legal Structure: An Ltd is a commonly used business structure in countries like the United Kingdom and refers to a private limited company. It is a separate legal entity from its owners and is required to have at least one shareholder and director. On the other hand, an LLC is a business structure commonly found in the United States and several other countries. It combines elements of a corporation and a partnership, providing flexibility in terms of ownership and management.
b). Liability Protection: Both Ltd and LLC offer limited liability protection, which means that the owners’ personal assets are generally protected in the event of business debts or liabilities. In an Ltd, shareholders’ liability is limited to the amount they have invested in the company. In an LLC, members’ liability is limited to their capital contributions unless they personally guarantee certain obligations.
c). Ownership and Management: Ltd companies have shareholders who own shares in the company, and the company is managed by directors appointed by the shareholders. In an LLC, the owners are called members, and they can have a more flexible structure for ownership and management. Members can actively participate in the management or appoint managers to run the day-to-day operations.
d). Legal Requirements: Ltd companies are typically subject to specific legal requirements, such as filing annual financial statements and adhering to corporate governance regulations. LLCs, on the other hand, often have less stringent legal requirements, providing more flexibility and ease of operation.
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.
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.
