UAE, one of the most lucrative destinations for business expansion and investment, allows national and international entrepreneurs and ventures to establish their business in the country and earn high profits. There are a host of legal forms of entities that can be incorporated in the UAE, of which limited liability is the most sought after and common form which offers a flurry of exclusive benefits to incorporators in terms of business friendly environs, relaxed taxation policies, cheap local resources and much more.
Different rules and regulations apply to different forms of companies, and same is the case with a LLC formation in Dubai and the other six Emirates. As per the laws governing LLC company formation in UAE, a LLC business setup can be done with a minimum of two and maximum of fifty people where their
liability stays restricted to their share in the organization’s capital. Being flexible in nature, the company encourages differential profit sharing arrangement wherein the profits and losses can be shared in an altogether different ratio. Furthermore, for a LLC formation in Dubai or either one of the remaining six Emirates, the company must have 51% partnership from a local UAE national while the rest 49% can be retained by the foreign entrepreneur/company with itself.
The mandate of having a local UAE national as a partner though may not seem to be a good idea to many, but it serves a great advantage to the foreign entrepreneur/company as they can benefit from the local partner’s marketing and trading knowledge and have an edge over others in the market. Moreover, the foreign entrepreneur/company can also seek help from their local partner for understanding the legal regulations, the UAE market scenario, gaining local
resources, and much more.
As per the prevailing rules and regulations, the minimum capital requirement for LLC business formation in UAE is 300,000 dirhams that can be in the form of cash or kind. This capital must be divided into equal shares where the value of each must not be more than 1000 dirhams. Additionally, as made mandatory by the Companies Laws, a LLC can engage in any and every kind of business activities except those relating to money investment on behalf of a third party,
banking and insurance.
A limited liability company offers seamless access to a wider UAE market and a host of other advantages to the foreign entrepreneur/company. These are as follows: –
The formal shareholding pattern of an LLC is – 51:49 :: Local UAE Partner: Foreign entrepreneur/company
100% tax free
Differential profit and loss sharing arrangement
100 % repatriation of capital and profits
Investor becomes partner in the venture
Easy to open international corporate bank accounts
Liberal bank account opening and maintaining process
More business branches can be formed
The company can buy and hold infinite property in the UAE
LLC offers a UAE resident visa to the foreign entrepreneur/investor
Everyday activities can be taken care by the foreign venture with least or no interference of the local UAE partner.
Requirements for LLC company formation in UAE
The Limited Liability Company or LLC is the most common form of setting up a business in the UAE. LLC formation is a combination of the two business forms,namely a partnership and a corporation, and is easier to establish as compared to other business forms. LLC business formation requires a minimum of 2 and a maximum of 50 shareholders, who are accountable as per their share in the business. However, there are no minimum share capital requirements for registering a limited liability company in UAE, except the fact that the capital should be sufficient for the intended business.
Companies having foreign partners choose Limited Liability Company for the reason that foreign investors can hold maximum legal ownership of 49% in the company. It is mandatory to have a UAE national holding a share of 51%, as a partner in the LLC.
Steps for incorporation of LLC in Dubai
The steps involves in formation include:
Select a name for the company and then take an approval from the Licensing Department of the concerned Emirates.
Draft a Memorandum of Association (MoA) of your LLC and get it duly attested by a Notary Public.
Get approval and clearances from the Economic Department.
After acquiring the approval, an official entry of the LLC is made in the Company Register.
The LLC’s MoA is then published in the Bulletin of the Economy and Commerce Ministry.
Finally, the Economic Department issues a license to the LLC and the company is registered.
LLC formation consultants possess the right expertise required for establishment of an LLC in Dubai and other emirates in the UAE. Jumeira Consultants offer comprehensive consultation and company incorporation services to clients according to their requirement, business plan and budget.
Jumeira Consultants, a leading LLC formation consultant in UAE, offers the most comprehensive services in the country. Housing a team of qualified professionals with years of experience in the field of company formation in UAE, we work closely with our clients, understand their needs and
help them expand their business overseas. Our services include:-
Helping find a local reliable partner for company formation
Assisting in setting up an office at a suitable location with lucrative business options
Helping through the entire incorporation procedure and securing approvals from the authorized bodies
Assisting in opening bank accounts
Offering full spectrum support services
Helping obtain a UAE resident visa for the entrepreneur
To know more about LLC business formation in Dubai and the other six Emirates, contact us today!