LLC company formation in Dubai, UAE: Process

If you want to set up an LLC company formation in Dubai, you have chosen the perfect city. The city of Dubai has become one of the best places in the world to establish a business. Setting up a limited liability company in Dubai is simple if you work with a professional company formation specialist, one of the best LLC company formation in Dubai, who can quickly get you up and running.

In this article, we are going to discover how to do LLC company formation in Dubai, the Benefits of starting an LLC in Dubai, LLC company formation cost, Steps to open an LLC in Dubai and Documents needed to start an LLC in Dubai. Knowing the basics of LLC formation in Dubai can streamline the process, making it more efficient and simpler for entrepreneurs.

Understanding LLCs in Dubai

The Limited Liability Company (LLC) is the preferred business structure in the UAE. It is a separate legal entity owned by several shareholders operating in the mainland jurisdictions of the UAE. Is an attractive option for both experience professionals and beginners.

Besides, LLC company formation in Dubai is the most common business structure in mainland UAE. The SSC is a state agency responsible for classifying and regulating the types of economic activities that can be carried out. It also has the authority to grant any license to the LLC.

So, unlike free zone companies, LLC company formation in Dubai is not limite to where they can operate in the UAE or the GCC. There are also no restrictions on ownership or the number of visas it can apply for. And, for the minimum authorized capital, there is no limit.

Benefits of LLC company in UAE

Some of the main advantages of incorporating LLC company formation in Dubai are 100% foreign participation, accessibility to a wide range of industrial operations when forming the company, and many more. By forming a limited liability company in Dubai, members can gain a greater presence and operate more efficiently in local supermarkets in the UAE.

Also, this means that you can use the company name to invest in the projects in Dubai, participate in the licenses and in the projects and obligations of the public. This means that all benefits can do the same.

Tax benefits

The UAE is popular for its tax-free environment. LLC company formation in Dubai is exempt from 100% taxation on profits. LLC company formation in Dubai in the UAE are 100% tax-free and do not pay taxes on any income.

As well, one of the significant advantages of forming an LLC in the UAE is the favorable tax environment. A tax in the UAE is very low comparing it to many other countries. This makes it an attractive option for entrepreneurs and companies seeking to maximize their profits.

Low import duties

LLC company formation in Dubai is one of the most attractive setup options for first-time entrepreneurs, with license costs starting from AED 8,000. Talk to one of our Business Setup Advisors to find out the process on how to set up a LLC company formation in Dubai.

Easy Setup

Forming an LLC company formation in Dubai is quick and easy. You can register your business with the Department of Economic Development (DED) in less than 90 minutes. It typically takes four to five days to get it up and running. However, there are several issues that can delay the procedure, such as government certifications.

Capital requirement

No minimum capital is generally required to form an LLC, making it accessible for startups. You are not required to have minimum share capital to set up an LLC company formation in Dubai. The shareholder will have to show the authorized share capital of AED 100,000, which will not be paid up.

Limited company

Share holders of an LLC company formation in Dubai are only liable to the extent of their share in the capital, protecting personal assets.

So, as the name suggests, an LLC company formation in Dubai offers limited liability protection to its owners, meaning that their personal assets are protected in the event that the business is sued or faces financial difficulties.

Foreign ownership

Several categories of UAE business licenses no longer require a UAE state sponsor. This allows 100% foreign ownership in non-free zone enterprises, making it an attractive option for foreign investors and businesses.

Opportunity to apply for multiple visas

LLC company formation in Dubai can readily obtain investor visas for themselves and employment visas for their staff.

Also, UAE entrepreneurs can get unlimited work visas when they form an LLC. You also get an investor visa that stays valid for two years. This allows you to get visas for your family members if you want to bring them to the UAE.

Besides, the foreign national can get a long-term prestigious golden visa for him and his or her family after successfully completing one year of business, having equity, and retaining earnings of more than 2 million AED.

Dubai LLC company formation cost

The cost of LLC company formation in Dubai usually ranges between AED 20,000 and 30,000. However, it is important to note that these fees may vary depending on factors such as the type of industry and the specific services required by your company.

In addition, to registration fees, there is other associate cost to consider. For example, the cost of obtaining an investor visa typically ranges from AED 4,000 to AED 5,500. It will depend on the category of employee you want to hire; the cost can vary between AED 5,000 and AED 7,000.

Also, final payment voucher fees go according to the type of business activity, third party approvals/registrations, as well as the cost of your annual lease (market share is 5%). Therefore, the price of certain activities can vary widely and result in higher costs.

In addition, all payments from Public Administrations are actual and backed by the original receipt. License fees are annual and payable upon expiration of the license for business license renewal.

Steps to open an LLC in Dubai, UAE

• Choose a business activity: Explore the various business activities listed by the Dubai Economic Development Department and select the one that suits your preferences. Our experts can help you determine the most suitable business activity for your needs.
• Reserve your company name: When selecting your company name, follow specific criteria. Offensive words and religious references are not legal. If you use your personal name, a both first and last name is requiring.
• Apply for initial approval: Once your company name is approved, apply for a certificate of initial approval from DED. Once approved, your company will be registered in the commercial registry.
• Prepare the MOA and LSA Agreement: To formalize your Dubai LLC, draft and sign a Memorandum of Association, which must be formally translated and notarized by a Notary Public. To obtain a professional services license, sign a local services agent or corporate agent agreement with a UAE national.
• Finding the perfect location: A commercial office is mandatory for the incorporation of an LLC in Dubai. Choose a location anywhere in the UAE and have your lease certified by Ejari, the essential registry of leases, for the business license application.
• Collect your business license: Submit all required documents to the Dubai Economic Department. If you meet all the requirements, you will receive your Business License, Certificate of Incorporation, Memorandum of Association and Share Certificates for your company.

Once you have started your business, set up and furnish your office according to your company’s needs. Make the necessary arrangements for visas, work cards and other legal documents and open a bank account for your business operations.

Documents required to start an LLC in Dubai, UAE

It is important to note that specific requirements may vary depending on the jurisdiction and specific circumstances. It is advisable to consult with us to ensure that you have all the necessary documents. Consequently, complying with the latest requirements for LLC formation in Dubai, UAE.

Also, whether through a company formation agent or by filing the application yourself, the DED requires certain documentation and some basic information. The documents required to form an LLC are

• Copy of the investor’s passport
• Copy of the local sponsor’s passport
• Certificate of no objection if the shareholder is working in a UAE company
• Copy of the UAE ID card
• DED registration application form
• A certified lease of the office premises
• Deed of incorporation certified by a notary public

So, if you have any questions, please contact one of the company set up managers who will be able to guide you through the detailed requirements. They will help you set up quickly, fulfilling all the requirements.

Eligibility for LLC company in Dubai

In order to know how to establish an LLC in Dubai, you should know the following requirements for eligibility:

• An LLC must have a minimum of 2 and a maximum of 50 shareholders.
• Also, the liability of the shareholders is limited to their shares in the capital of the company, which means that they have protection against the debts and obligations of the company.
• As well, when establishing an LLC in Dubai, it is mandatory to partner with a local (UAE national) sponsor who owns 51% of the ownership of the company.
• Besides, the expatriate (you) would have control over the remaining 49%.

If you want to know more about this and other articles, we invite you to view our insights here. If you want to hire our servicesfor LLC company formation in Dubai UAE, you can contact us now.