Dubai is one of the most business-friendly cities in the world with cosmopolitan flavours, combining the elements of both the East and the West. The ever-growing business sector proves it is also the most favourable business destinations the world over.
In the last two decades, Dubai has seen a sea of transformation that brought hundreds of foreign investors to the city, most of whom has made it their second home. Among many options for business setup in Dubai, a Limited Liability Company or LLC is fast becoming the first choice for many investors.
In UAE, LLC is the most common form of business setup. One needs only a minimum of 2 and a maximum of 50 stakeholders (shareholders) for the formation. The liability of the shareholders is limited to their shares in the capital of their business. Enterprises with foreign partners settle on LLC because it provides 49% of the total shares to an expatriate for a local business, which is the maximum legal ownership for a company. Investors have to appoint one UAE national (sponsor) as their business partner in the company. Having a UAE national as a partner in an LLC company with 51% shareholding is mandatory.
LLC companies are flexible and there is also a possibility of differential profit-sharing options. Due to this option, foreign investors see a considerable advantage as 51% legal equity stays with a local partner.
LLC Company Formation in Dubai Formalities
Here are the steps to register an LLC in Dubai:
- Registration of the company with the Department of Economic Development of the respective emirates of UAE. In the case of Dubai, it has to be DED Dubai
- Draft the company’s Memorandum and Articles of Association and get them approved by a notary
- Submission of all the necessary documents and business license application form with the Department of Economic Development
- Registration with the Dubai Commercial Register
- After formation, register the employees with the Ministry of Labour and General Authority for Pension and Social Security (only for Emiratis)
Key Benefits of an LLC Formation in Dubai
Why should you opt for an LLC company in Dubai? Here are some of the benefits of Company Formation In Dubai, UAE:
- Dubai LLC allows unequalled access across the UAE economy
- No need for any specific minimum capital
- Business owners can manage their business without regular involvement of the local partner
- It is easier to open corporate bank accounts along with the easy availability of credit facilities
- For investors looking forward to starting a consultancy service with an Emirati national as a trustworthy joint venture partner, an LLC in Dubai is an ideal option
If and when you plan to start a business in Dubai, consider hiring a professional business setup consultant, preferably one with vast experience in establishing businesses, and companies in the UAE. They will make the process much easier and smoother than if you were having a go at it yourself. Whatever is the size of your business, the process of company registration and formation is not easy, especially for the first-timers. Professionals in the field can not only be of great help in the company formation but also in finding you the right office location and other business setup related factors. When you come to Dubai, make sure you contact some of the top business setup firms to make your process quick and smooth.