What is the procedure to set up a Limited Liability Company in Dubai?
October 30, 2023 - 11:38 AM
It is a dream for a lot of businessmen to set up companies in Dubai. Dubai mainland is a hub of business and it is the most established and cosmopolitan city in the Middle East. It is one of the most favorable business destinations to set up business in Dubai. It is mandatory for the mainland UAE legal entities to get licensed by the Department of Economic Development (DED) and governed by the UAE Commercial Companies Law (CCL).
All About Limited Liability Company
One of the most favorable ways to set up business in Dubai is through a Limited Liability Company or LLC. The Limited Liability Company is the most day-to-day kind of business in Dubai. The business is formed by a minimum of 2 and a maximum of 50 shareholders, the liability of whose shares are also limited in the business capital. the companies with foreign partners choose an LLC as it is the only option that gives maximum legal ownership. It gives 49% ownership to an entrepreneur for a local business.
The prospective investor has the option to choose as the partner of the company to the UAE national as it is a mandatory thing to have a UAE national as a partner in the LLC. The UAE national should have 51% shareholding in the company. It is possible to have different profit-sharing arrangements as LLC is a flexible kind of business and this gives the foreign investor a great opportunity as 51% of legal equity is with local partners.
What are the Features of LLC Company Formation in Dubai?
The features of a Limited Liability Company to set up business in Dubai are:
It is the most prevalent type of business in the UAE.
It requires a minimum of 2 members and a maximum of 50 shareholders to set up a company formation in Dubai.
All the shares of the shareholders are limited to the business capital.
LLC is a versatile kind of business.
The provisions for mutual profit sharing are feasible.
Above all, It attracts the international investor a huge opportunity as a local partner has 51% legal equity.
How to start an LLC Company in Dubai?
Below are the steps to start an LLC Company in Dubai:
1. Select a trading name for the business
First, to start a business a catchy company name is required, So the very first thing which a person needs to do is to select the name of the company. The name should sound attractive and professional so that the customers are easily attracted to the company.
2. Choosing a location to set up business in Dubai
After the selection of trade names is done, it's time to select a posh location to start up the business. It is important to select the right location for the company. Choosing the right location is important as it helps the firm to get the right customers and clients and boost the business.
3. Getting a Local Sponsor
An agreement has to be made with the local sponsor who will own 51% of shares in the LLC business and the remaining 45% can be owned by the owner himself.
4. Documents Required to obtain the License
After getting the approval there are certain documents required which are mentioned below. These documents are mandatory to obtain a license for starting a company formation in Dubai. the documents have to be submitted to the DED.
5. Pay Fees and Get the License
A minimal fee is required to get the license. This fee has to be paid before getting the license.
How to Set up a Limited Liability Company in Dubai?
Here is the step-by-step process to set up a Limited Liability Company in Dubai.
The Company registration in Dubai with the Department of Economic Development has to be done.
After that, drafting and notarizing the company’s Memorandum and Articles of Association is required.
Then, all the required documents and business license application forms with the Department of Economic Development have to be submitted.
Registering with the Dubai Commercial Register is needed.
Other than incorporation, registering one’s employees with the Ministry of Labor and General Authority for Pension and Social Security also has to be done.
What are the documents required to set up an LLC Company in Dubai?
The documents required for the LLC Company set up in Dubai are:
A duly filled registration application form is required.
The Passport copies of all shareholders and managers of the company.
A Passport copy of the local sponsor is required.
NOC from sponsor (if manager or partner has residence visa in UAE) is required.
A Memorandum of Association is needed.
The Registration of trade name and initial approval from DED is needed
A Bank reference letter of each shareholder is required.
Location plan and tenancy contract attested by Dubai Municipality’s Planning Department and Civil Defense Department is needed.
It would be easier for the entrepreneur to set up business in Dubai if all the documents are attested and notarized from the applicant’s home country and UAE consulate. As the notarization procedure takes a lot of time and also it should be done soon after taking a decision about business set up in Dubai.
What are the Advantages of setting up an LLC Company in Dubai?
The advantages of setting up an LLC in Dubai are:
There are no territorial restrictions on business activities or the location for company formation in Dubai, unlike the Free Zones.
A mainland company has the freedom to operate their business anywhere in the UAE or wider Gulf Cooperation Council (GCC).
There is a far wider range of real estate options from which a person can choose his business set up in Dubai.
The shareholder's liability is limited to the shares in the company's capital.
A Limited Liability Company can start any kind of business activity except for banking, investment, and insurance.
What are the disadvantages of setting up an LLC Company in Dubai?
The disadvantages of setting up an LLC Company in Dubai are:
The Employee visas are required to be renewed every 2 years.
It takes a Longer time to establish than a Free Zone company. The time span required is typically 8 to 10 weeks.
An External approval is required from UAE government ministries, which is chargeable and time taking.
Let's Build up a Relationship
Danburite Corporate is an organization having skilled and experienced consultants who have been assisting businessmen in the company formation in Dubai. So what are you waiting for? Contact Us today and start your business in Dubai!
Foreign investors who acquire real estate in Dubai worth a minimum of AED 2 million can now apply for a 10-year Golden Visa, a remarkable opportunity provided by the DLD. This initiative has been implemented to encourage more investments in the Dubai property market and boost the economy.
The Golden Visa is an excellent opportunity for those
Here's what you need to know about it.
As is commonly understood, a Golden Visa is a residency permit valid for 5 or 10 years, that confers various advantages, such as the ability to reside and work in the UAE for a prolonged period, without the requirement of a local sponsor or employer. A Golden Visa presents investment prospects, elev
The UAE has made significant progress in promoting female entrepreneurship over the years. In the UAE, 77.6% of women-owned businesses (WOB) are run by people under the age of 40, according to a recent survey by NAMA Women Advancement in collaboration with UN Women.
The results of this study were published in the book "Women-Owned Businesse
According to E-commerce DB, the United Arab Emirates is the 28th largest market for e-commerce with an expected revenue of USD 11,782.3 million by 2023. E-commerce has helped many businesses gain access to the world market, allowing small businesses to expand their reach.
Setting up an e-commerce business has numerous benefits. Not only does it
CORPORATE BANKING
Opening a bank account for your company has many advantages. It contributes to the improvement of the company’s credibility, improves the financial management of the company, and offers protection for business funds, creating easier financial transactions. Clients of the company will feel reassured about its legitimacy, a
The United Arab Emirates mesmerizes with its incredible scenic beauty and unmatched modern infrastructure! It is impossible to believe it was once a vast desert with no amenities or life. However, the gracious rulers of the region had the vision and foresight to turn around the fortunes and make UAE a powerful and modern nation highly respected tod
The United Arab Emirates (UAE) offers a Golden Visa program for investors, entrepreneurs, and talented individuals looking to live and work in the country. This program grants long-term residency to individuals who make significant investments in the UAE, allowing them to stay in the country for up to 10 years and potentially even apply for citizen
The United Arab Emirates (UAE) has constantly been leveraging its limit to broaden the business scope. The Emirati Government's visionary leadership has aided in transforming the concept of business incorporation. Various segments and dedicated regions have been developed across the UAE to focus on specific business industries. Because petroleu
Business in the United Arab Emirates (UAE) has been growing to make many ex-pats into Business entrepreneurs. The investor-friendly regime has ensured that Dubai, Abu Dubai, and other emirates in the country are fertile for the growth and development of businesses. Consequently, the UAE witnesses one of the pinnacle enterprise locations around the
The idea of setting up a business in Dubai can be a lucrative opportunity for a company to broaden its reach and establish a reputable brand name internationally. You can benefit from Dubai's cutting-edge infrastructure, strategic location, easy access to nearby markets, and world-class connectivity whether you're a small, medium, or large
Dubai has been the flag-bearer of the United Arab Emirates's global progress for quite some time. The city provides expanding economic opportunities, diverse business start-ups, and investor-friendly policies to entrepreneurs from all over the world. Before you start forming your company, you must decide which free zone you want to operate in.
The United Arab Emirates (UAE) continues to attract more businesses around the world due to its strategic locations and business-friendly ambiance. To set up a business in Dubai legal procedures and documentation must be followed for ensuring the Legal Setup of your Business in Dubai. Once you've completed all of your legal procedures, starting
A business setup in Dubai can be a lucrative opportunity to expand the company's reach internationally and establish a reputable brand name. Whether you're a small, medium, or large business, you can take advantage of Dubai's cutting-edge infrastructure, strategic location, easy access to nearby markets, superior connectivity that makes
Trading is one of the most critical industries in the United Arab Emirates (UAE). According to new data, the UAE is the world's 25th largest exporter in the world. before that, we must see the trend. In 2014, Dubai was ranked first for airport connections to business districts and fifth for the most affordable city, making it a global 'City
The United Arab Emirates is one of the top trade and commerce destinations in the world. Authorities of Dubai have taken certain measures to boost the trade and commerce activities in the country to make the business hub of global trade. It has persistently seen trade and commerce growth in the past few years and it is continuing to do so. With a b
The first step in starting a business is to develop a winning business idea, but ideally, you will create a business that both interests you and fills a market need. When expanding your business in the city, you must raise awareness among the locals. It is critical to strike deals with local import and export dealers to maintain good connectivity.
Anyone Who is wondering to start a business in Dubai always considers the cities of the UAE as their first preference. For investors, the UAE has become a household name. As a result of doing business in the UAE, many residents have become successful entrepreneurs. The investor-friendly regime has made Dubai, Abu Dubai, and the country's other
When we look at how far Dubai has come in such a short period, it is easy to see why starting a business in Dubai is such an attractive prospect to many entrepreneurs. A business setup in Dubai is often a moneymaking chance to form a business, grow internationally, and build a reputed brand name. Whether you are a little, medium, or massi
Dubai is a grounded destination for business investors to step forward. Over the years, Dubai has become one of the most significant places to set up Business. From broad diversity in population to a flourishing economy, Dubai is a city of opportunities to large investors.
One of the attractions to set up business in Dubai is its tax r
The government in the UAE offers various incentives to Foreign business owners to register a business in Dubai. With the investments pouring in, there has been an increase in the number of companies in Dubai. The city's economy is flourishing, with no taxes, and their world-class infrastructure, business registration Dubai is on an all high. Al