Dubai is one of the most affluent and global cities in the Middle East, blending both the East and the West components. It is one of the most flattering business locations all over the globe. One of the ways to start a business in Dubai is through a Limited Liability Company or LLC for short. Limited Liability companies are the most renowned types of business entities registered by overseas entrepreneurs in Dubai, as this is the only choice allowing them maximum ownership. If you are wondering how to start a Limited Liability Company in Dubai, then here we highlight all the procedures to set up an LLC.
The Limited Liability Company (LLC) is the most common form of business in the United Arab Emirates (UAE). These types of companies can be formed by a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their shares in the business capital. The establishment of a limited liability company in Dubai is quite simple, requiring a few steps to be performed. Another advantage of the Dubai limited Liability company is that it can be registered for any commercial motive.
Limited Liability Company (LLC), as a name suggest, is a kind of company structure where members of the company are not personally liable for any loss. Rather than, the company is liable as per its capital share. In Dubai, Limited Liability Companies (LLC) permits overseas citizens to own 49% of its shares, while 51% must be brought up by a local partner/ sponsor. LLC is versatile, and differential profit-sharing arrangements are also possible. This offers the oversea traders an excellent edge as 51% legal equity is with a local sponsor/ partner.
Advantages Of A Limited Liability Company (LLC) In Dubai
- The most manifest and essential feature of Limited Liability Company (LLC) is the protection from personal liability to members of this particular company. In case of debt or any court ruling, the company is only needed to pay as per its share capital. It saves members of the company from paying from their personal assets like cars, homes, etc.
- The vital benefit of a Limited Liability Company (LLC) that distinguishes it from primary company structures is the freedom to employ a number of shareholders in a Limited Liability Company (LLC). The LLC can have an unlimited number of shareholders that can advantage of the development of business.
- There is less paperwork needed for the setup of a Limited Liability Company (LLC), as compared to most of the other business structures. This reduction in paperwork is mostly due to less strict needs to follow. This makes Limited Liability Company (LLC) not only easier to create but also can smoothly stay in good legal standings.
- A limited Liability Company (LLC) can also one or more owners. In the case of multiple owners, a Limited Liability Company (LLC) has the versatility to distribute profits among owners appropriately.
- Limited Liability Company (LLC) has another vital benefit considering taxation. These companies are free to select the tax status of any business structure as per their own needs and liking. These companies can also ignore double taxation. As compared to the other business entities, they are also known as the finest entity for tax motives.
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Steps To Register A Limited Liability Company (LLC) In Dubai
- Registering the company with the Department of Economic Development (DED).
- Drafting and notarizing the company’s Memorandum and Articles of Association
- Submitting all the needed documents and business license application form with the Department of Economic Development (DED).
- Registering with the Dubai Commercial Register
- Upon establishment, registering one’s workers with the Ministry of Labour and General Authority for Pension and Social Security.
Documents Required To Set Up Limited Liability Company In Dubai
There are numerous documents that must be submitted in the Department of Economic Development (DED) and other officials to the kind of LLC to be set up in Dubai. All these documents must be attested and notarized from the applicant’s country and United Arab Emirates (UAE) consulate. The notarization procedure takes relevant time, and it should be done soon after the decision about setting up a company in Dubai. The following are the documents required for starting a limited liability company in Dubai.
- Duly filled registration application form
- Passport copies of all shareholders and managers of the company
- Passport copy of sponsor/partner
- Registration of Trade name an initial approval from the Department of Economic Development (DED)
- Memorandum of Association (MOA)
- NOC from sponsor (if manager or partner has residence visa in the United Arab Emirates)
- Destination plan and tenancy contract attested by Dubai Municipality’s Planning Department and Civil Defense Department
- Bank reference letter for each shareholder
The Limited Liability Companies (LLC) is perfect for a business seeking to provide consulting services with an Emirati national as a suitable joint enterprise partner.
Also read, How To Start A Online Business In Dubai