In the UAE mainland, the most common company structure is a Limited Liability Company (LLC), a legal company established in the Dubai mainland with up to 50 shareholders. This company setup is the top choice of small businesses and investors due to its cost-effectiveness, no-trade, and real estate ownership restrictions.
An LLC company in Dubai enables investors to Open a Bank Account, obtain a federal tax ID number, and start running their business under their ownership. Due to this, LLC company formation in Dubai is an excellent choice for both new investors and established companies. Now, we will discuss the LLC company setup in detail.
Dubai LLC Company Information
A limited liability company in Dubai is one of the best options for investors to establish their business on the mainland of the UAE. Up to fifty shareholders can be involved in it, and all are legally responsible for their capital share. An LLC can trade anywhere in Dubai, including up to 50 free zones and the Gulf Cooperation Council (GCC).
How to open LLC company in Dubai
LLC company formation in Dubai is time-consuming, so following the critical steps discussed below is essential.
Select a Trade Activity
The first step is to select the appropriate trade activities for your company. The Department of Economic Development Dubai’s website provides multiple options.
Choose a Business Name
Another important step is choosing a name for your LLC company in Dubai. Make sure to select an outstanding and unique name that doesn’t violate any laws enforced by the authorities.
Seek Initial Approval
After the name approval, get the initial approval certificate from the Department of Economic Development in Dubai. The DED will register your firm in official records.
Determine a Location for Your Company
It is obligatory to get a workplace for your LLC company formation in Dubai. When finalizing the location, you need to consider various factors, such as expenses, capacity, employees, and other professional requirements. You’ll need a lease or rental contract for your office which is issued by Ejari.
Arrange Memorandum of Association and other Approvals
To complete your Dubai LLC company registration, arrange a Memorandum of Association (MOA) to plan your business activities. You’ll also need to add details of your company’s legal rights and status. After that, submit the MOA and lease agreement to the relative authorities.
Get a Trading license
To establish an LLC company in Dubai, you’ll need a trading license, which the DED provides. If all the requirements are met after you submit the required documents, you’ll get your trade license, certificate of incorporation, and other legal documents.
Additional Documents
After the company is inaugurated, apply for labour cards, complete your visa and other legal documents, and open a bank account. As soon as the documents mentioned above and fees are paid, you’re all set to start running your LLC company in Dubai.
Essential Documents for Dubai LLC Company Registration
After discussing Dubai LLC company information, we will now discuss the essential documents required by the Department of Economic Development. These documents are mentioned further.
- Photocopy of investor’s passport
- Photocopy of local sponsor’s passport
- NOC if the investor is working in Dubai’s company
- Photocopy of Emirates Identity card
- The registrations DED gives registration application
- Attested MOA
- Attested lease document for your workspace
Gather all the required documents before submitting them to the Department of Economic Development Dubai. The documents must be verified and according to the DED’s requirements.
Cost of LLC Company Formation in Dubai
The cost of forming a Limited Liability Company in Dubai ranges from AED 20,000 to AED 30,000. This fee can vary depending on your trade activities and company services.
Advantages of LLC Company Formation in Dubai
The goal of Small business investors and entrepreneurs is that they want their investments to be cost-effective and time-saving. Therefore, it is important to know the advantages of starting an LLC company in Dubai.
Cost-effective & Immediate Business Establishment
Establishing an LLC company in the UAE is cost-effective, as there are no other expenses other than company formation. What’s more, the registration process in DED only takes one and a half hours to complete. However, this process can be delayed due to government certifications and other issues.
No Income Tax
A limited liability company trading outside the UAE and established in the free zone does not have to pay tax. They can trade anywhere in Dubai and the GCC countries, and there’s no income tax or permanent capital required. This is a huge benefit for investors as they can save their revenue and make more profits.
Wide Array of Allowed Trade Activities
LLC companies in Dubai are allowed to perform a wide range of trade activities. More than two thousand trade activities are available in the commercial, agricultural, and tourism sectors without any restrictions on those trade activities.
Advantage to Get Multiple Visas
Establishing a UAE LLC company gives you the advantage of getting multiple visas. If you stay in the UAE for three years, you also become eligible for an investor visa. After getting an investor’s visa they can apply for family and employee visas.
100% International ownership
In the UAE, the majority of trade licenses do not need a local sponsor from Dubai. Therefore, 100 percent of international ownership of companies outside of free zones is authorized.
Protection From Liabilities
The expenses of an LLC business setup are separate from the finances of the partners because it is considered an individual legal organization. That’s why the shareholders are not held responsible for the losses suffered by the LLC.
No Minimum Share Capital Needed
Dubai LLC company registration does not require a minimum share capital. However, investors are required to disclose a capital of AED 100,000, which does not need to be paid.
Final Words!
Lastly, we have learned that setting up an LLC Company in Dubai is a complicated procedure that requires investors to follow the rules and regulations set by the authorities. Setting up an LLC company means you can trade across the country without any restrictions.
Also, there is no requirement for minimum capital for company formation. Avail this opportunity and enjoy these benefits by setting up your LLC company in Dubai today.
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It is highly suggested that you refer to our experienced consultants from aauditing.com, who have years of experience in auditing and other services to help with the smooth setup of your business in Dubai.