Business Setup

How to Setup a Limited Liability Company (LLC) in Dubai, UAE?

LLC Company Formation in Dubai

The UAE offers a lot of varieties for both locals and foreigners who want to start a business here. One of the most popular types of company structure in Dubai is a Limited Liability Company. LLC company formation in Dubai is safer than the other types of company structure.

As a result, it quickly became the most sought-after by foreigners. Subsequently, If you want to setup a Limited Liability Company in Dubai, then the experts at Company Setup Consultants are here to help you.

Seeking help from a business consultant in UAE can start a LLC Company Setup in Dubai very easy. It is also important to know the steps of LLC company formation in Dubai, to avoid confusions or complications. We will see why that is when we learn what is a Limited Liability Company.

What is LLC Company Formation in Dubai?

A Limited Liability Company (LLC) is a type of company structure where the shareholder’s liability is limited to the capital they have invested in the business. This means that if the business were to go bankrupt, all your personal properties that are separate from the business will be safe.

Whereas, in other types of company structures, the banks can look to your personal properties to collect your debts and loans

In Dubai, a Limited Liability Company must have a minimum of two shareholders and can have a maximum of 50 shareholders. All of these shareholders will have full protection from the liabilities of the business. Limited Liability Companies can be formed on the mainland in Dubai.

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Most of the free zones in Dubai also facilitate the creation of Limited Liability Companies within their jurisdiction.

Expatriates often choose an LLC for their Company Formation in Dubai because it allows the maximum retention shares to the expatriate for the local business, which is 49%. This is because of the UAE law which states that foreigners must have a local investor in order to legally start and run a business in the Emirate.

Setup a Limited Liability Company in Dubai

Steps to Setup a Limited Liability Company in Dubai, UAE

Setup a LLC Company in Dubai is easy and straightforward. However, if this is your first time starting a business in Dubai then it is highly recommended that you seek assistance from professionals.

The Department of Economic Development (DED) has the authority to issue a license for Limited Liability Company (LLC) business setup in Dubai. They will ensure that there are no mistakes in the formation process that may lengthen the formation process.

Here are the steps you need to follow in order to start a Limited Liability Company in Dubai:

1. Choose your business activities

The first step is to select the business activities that you want to perform in Dubai. The business activities that you select will determine the type of business trade license that you will need to apply for. The most popular types of business trade license Dubai are Professional trade licenses, Commercial trade licenses, Industrial trade licenses, and Tourism trade licenses.

2. Choose your trade name

You will need to trademark a name for your new Limited Liability Company in Dubai. The name you have in mind can exist outside the UAE but as long as it is available inside the UAE, you can go for it.

3. Rent or Lease an Office Space

The tenancy contract and the EJARI are mandatory for starting any kind of business in Dubai. That is why you will need to rent or lease an office space if you want to setup a Limited Liability Company in Dubai.

4. Obtain the initial approval

The Department of Economic Development in Dubai is responsible for handling the registration of new Limited Liability Companies in the city. Therefore, you will need to obtain the initial approval from them before moving on to the next steps.

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5. Complete the documentation and payment

You will need to provide the required documents to the officials at the Department of Economic Development in Dubai. After that, they will provide a payment voucher to you. After completing the payment, they will provide the business trade license to you.

6. Apply for labor cards and visas

The last step is to obtain the labor cards for your employees. In addition, you will be able to sponsor a few visas depending on the size of your office space. Moreover, you will be able to sponsor the visas of your close family members.

Documents Required for LLC Company Formation in Dubai and the UAE

The Department of Economic Development (DED) will ask for certain documentation before granting the license for LLC Company Formation in Dubai.

You may be asked for following documentation:

  • Application form of registration from Dubai Economic Department
  • Passports copy of expatriate investor
  • Passports copy of local sponsor
  • Passports copy of managers and shareholders of the company
  • No Objection Certificate (NOC) from sponsor if the shareholder or manager has residence visa in UAE
  • Copy of Emirates ID (for UAE nationals)
  • Registration of trade name and initial approval from DED
  • Location plan and tenancy contract of office by the Dubai Municipality Planning Department and Civil Defense Department
  • Memorandum of Association (MOA) duly attested from public notary
  • Bank Reference Letter for all shareholders

This is the process for LLC Company Formation in Dubai, UAE. Establishing an LLC can present great business opportunities and benefits in the Emirate. We recommend assistance from a company setup consultants, for speedy and efficient registration. Contact us to learn more.

What are the Benefits of LLC Company Formation in Dubai?

The reason that Limited Liability Company is the most popular type of company structure in Dubai is because of all the benefits it provides to the owner. It is the go-to choice for entrepreneurs who are coming to Dubai from all over the world to start their businesses.

This makes Limited Liability Company the choice of all of those who are confused about which type of company structure to choose from when starting their business.

Here are the benefits of setup a Limited Liability Company in Dubai:

1. Cost-effective

First and foremost, you can start a Limited Liability Company in Dubai with a limited budget. There are minimum capital requirements or conditions when starting a Limited Liability Company in Dubai.

The main cost of LLC company formation in Dubai will be obtaining the business trade license and getting an office space in the city. There are other small costs like trademarking your business’s name and logo.

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2. Easy and quick setup

The Department of Economic Development is responsible for handling the registration of new Limited Liability Companies on the mainland. If you want to start your Limited Liability Company is one of the free zones in Dubai, then you will need to go to the respective free zone authority.

The presence of Company Setup Consultants makes it quick and easy to setup a Limited Liability Company in Dubai, even if you are the first-timer here.

3. Easy to Get Visas

As an owner of a Limited Liability Company in Dubai, you are eligible for an investor visa so that you can move and work in Dubai. Once you get your own visa in Dubai, you can sponsor the visas of your close family members like your spouse, children, parents, and also one domestic worker.

Depending on the size of your office space, you can also sponsor the visas of several of your employees. This gives you the option of hiring talents from anywhere in the world.

4. Safe choice

Last but not least, Limited Liability Company is so popular in Dubai because it is one of the safest choices in terms of company structure. As we have mentioned before, in a Limited Liability Company, the shareholder’s personal properties are safe if the company goes bankrupt.

The Limited Liability Company will be considered as a separate legal entity. As a result, it will be solely responsible for its own debts and other liabilities.

Frequently Asked Questions About LLC Company Setup in Dubai

What is a Limited Liability Company?

A limited liability company (LLC) is a type of company structure where the shareholder’s liability is limited to the capital they have invested in the business. This means that if the business were to go bankrupt, all your personal properties that are separate from the business will be safe.

This is because the Limited Liability Company is considered a separate legal entity. As a result, the affairs of the business will be separate from the affairs of the owners.

How much does it cost to Setup an LLC Company in Dubai?

A minimum of AED 300,000 or USD 82,000 is required as starting capital to setup a Limited Liability Company in Dubai. In addition to this, when you want to setup an LLC Company in Dubai, you will need to keep a budget to complete the steps in the setup process.

For instance, you will need to spend approximately AED 26,000 for the Limited Liability Company formation. Moreover, you will need an extra AED 2,000 for trademark registration.

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How can I Get an LLC License in UAE?

If you want to setup a Limited Liability Company in UAE, then you have to follow a few steps. Firstly, you need to select your business activities and chose the trade name of your company.

Secondly, you need to rent or lease office space for your company. This is because the tenancy contract and EJARI are mandatory if you want to setup a LLC company in Dubai. Finally, you need to submit the required documents and pay the fees for the license.

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 any 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 Limited Liability Company in Dubai, 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?

You can setup a Limited Liability Company in Dubai as a sole proprietorship. However, before the foreign ownership rules were amended. Usually, Limited Liability Companies had a minimum of two owners.

The maximum number of shareholders a Limited Liability Company can have is 50 in Dubai. In short, a Limited Liability Company in Dubai can have one to fifty partners.

What is the difference between an Ltd and LLC?

The primary difference between an LLC and an Ltd is that an LLC does not pay taxes while an Ltd pays taxes. To clarify, an Ltd needs to pay corporate taxes as a separate legal entity, while an LLC is subjected to taxes.

However, depending on the state laws, if the income of the owners of an LLC exceeds a threshold, they will have to pay personal taxes. Furthermore, the full form of an Ltd is Limited Partnership, and an LLC is a Limited Liability Company.

What are the Documents Required for LLC Registration?

Here are the documents required if you want to setup a LLC company in Dubai, UAE:

  1. The filled-up LLC registration application form
  2. Copies of the passports of all the shareholders and managers of the company
  3. Copies of the passports of the local sponsor if you have one
  4. A No Objection Certificate from the sponsor
  5. The duly attested Memorandum of Association
  6. The trade name registration certificate and the initial approval certificate
  7. The bank reference letters of all the shareholders
  8. The tenancy contract and EJARI

Is LLC better than Ltd?

Generally, all types of company structures have their advantages and disadvantages. However, in Dubai, Limited Liability Company is the popular type of company structure thanks to all the benefits it provides. In addition to the benefits, it is very easy to setup a Limited Liability Company in Dubai.

How can Company Setup Consultants help you?

If you are going for an LLC company setup 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.

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