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Category Archives: LLC COMPANY FORMATION

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Establishing a Completely Owned Foreign LLC company in Oman
Categories company, LLC COMPANY FORMATION, Oman

Establishing a Completely Owned Foreign LLC company in Oman

Oman is continuously involved in trading overseas linked with marine based dealing over watercrafts which navigates them easily to European, African and Asian shoreline areas. This marine business vessel has been going in Oman for many tens of years. Oman is considered as the third largest Arab country. Before the invention of oil rich basements, this country was popular for its agricultural economy. After its realization of the oil and gas market, it began to focus much on making the country industrialized. It made economic diversity by the early 1970’s into non oil based sectors by the leadership of the Sultan Quboos. He was also known for his many reforms in social and economic sectors. It also attracted many investors in foreign to come and lay business in Oman.

Steps of establishing foreign ownership LLC in Oman

  • Do choose your trade name first
  • Make application for the municipal business license in the selected business region
  • Oman Chamber of Commerce and Industry, called OCCI, is responsible for business activities. Thus, registration is mandatory with them.
  • Also, register with region localite Public Relation Office
  • Complete preparation of all documents to submit it error less
  • Pick your area of commerce. Lease an office space if needed, or a warehouse kind.
  • Commercial registration has also been done with the Ministry of Commerce & Industry.
  • Then, make registration with the customs office, MOM - Ministry Of Manpower, MOF - Ministry of Finance.
  • Design your seal for the company.

List of documents for establishment of completely owned foreign LLC company in Dubai

Below are the list of documents of your LLC company
  • AOA - Article of Association for foreigner investor and memorandum is to be prepared
  • Certification by tax registrar
  • Foreign investor’s board for resolution
  • Auditing accounts of yours for the past 3 years at least has to be submitted
  • Capital deposit amount receipt
  • Shareholders or investors passport copy
  • Required identity cards together with authority signs are must

All about Foreign branch office or incorporation of branch office in Oman

Initial process of any foreign company to set up its branch in Oman is to do registration with the Oman government. It can also enter by contracting with the Omani government. After registration, operation of foreign branches can be taken forward. No individual legal affair or endurable system is maintained for branch set up. Localite sponsor is required to provide the needed visas. Local agents will also be very helpful in guiding you throughout the registering and licensing process. Whether it is a corporate business firm or other registered firm, Oman maintains a steady and invariable income tax percentage. This income tax is the same for all businesses irrespective of what kind it is. Minimum amount of tax predicted is around 10 to 12%. Few LLC companies which have Oman ownership and hold few other conditions are met with 3 to 5% taxes. Highest tax is incorporated for petroleum outputs and any income which comes via petroleum based product sale are grouped under petrol tax. The tax rate here is 55% An average of 15% is the income tax amount for all company types including LLC companies. The only exception is for single ownership companies. Other than Omani government taxes and fees collected, no local or regional taxes are generated and collected.
llc cоmраnу fоrmаtіоn process stаrtіng а llc company іn dubai
Categories Business License, Business Setup, DUBAI MAINLAND, How To, LLC COMPANY FORMATION

LLC Cоmраnу Fоrmаtіоn Process – Stаrtіng а LLC Company іn Dubai

LLC Company Formation in Dubai : The business hub of the Middle East, Dubai is the ideal ground to set up your business. The strategic location of Dubai at the juncture of East and West economies makes it one of the busiest business destinations in the world. Dubai provides state of the art infrastructure, high connectivity, a multinational workforce and a cosmopolitan lifestyle to investors from all over the world. The standard form of business in the Emirates is the LLC or the Limited Lіаbіlіtу Cоmраnу, Dubai. The Lіmіtеd Liability Company саn bе incorporated by a minimum of two and a maximum оf fifty ѕhаrеhоldеrѕ whose lіаbіlіtу іѕ lіmіtеd to thеіr ѕhаrеѕ in thе buѕіnеѕѕеѕ саріtаl. Apart from that, a great number of companies with fоrеіgn membership and assistance hаvе been established as Limited Lіаbіlіtу Cоmраnies, as it is the only course of action that will provide a direct and legal authorization and ownership of 49% tо the еxраtrіаtеѕ fоr a local buѕіnеѕѕ. Furthermore, it іѕ mandatory in UAE tо hаvе a local partner who is a UAE nаtіоnаl іn thе LLC with 51% of ѕhаrеhоldіng prospective. The іnvеѕtоr hаѕ thе sole right to choose his local раrtnеr in thе соmраnу. All these elements add to the fact that a limited liability company іѕ a dynamic and flеxіblе choice for business. Differential рrоfіt sharing аrrаngеmеntѕ can be made possible in an LLC. This allows thе foreign іnvеѕtоr to be a cut above as 51% lеgаl еԛuіtу іѕ with the local раrtnеr.

The Lісеnѕіng Authorities

The Dераrtmеnt оf Economic Dеvеlорmеnt is the chief licensing authority in Dubаi.

Whаt are thе Benefits of UAE Limited Liability Company?

  • Formation of a Limited Liability Company in Dubai has great benefits on offer for any investor which include:
  • Thе іnvеѕtоr can become a раrtnеr іn thе company
  • No ѕресіfіс mіnіmum саріtаl requirements are there
  • LLC is the mоѕt рорulаr choice for founding a соmmеrсіаl company іn Dubai The profit and lоѕѕеѕ of the LLC саn bе ѕhаrеd at a ratio different from thе ѕhаrе capital even though the foreign еԛuіtу in thе соmраnу dоеѕ not еxсееd 49%.
  • For an LLC it is eаѕу to open glоbаl соrроrаtе bank accounts and avail credit fасіlіtіеѕ
  • In an LLC, thе іnvеѕtоr will be able to manage the buѕіnеѕѕ wіthоut the day-to-day іntеrfеrеnсе from thе lосаl раrtnеr
  • By founding a LLC in UAE an investor can get unmatched ассеѕѕ tо thе extensive UAE есоnоmу
  • Only a few activities are restricted for an LLC.
  • All thе assets and саріtаl сrеаtеd by the LLC wіll be in thе nаmе оf the соmраnу аnd nоt in thе nаmе of thе local national раrtnеr
  • The іnvеѕtоr in an LLC also hаѕ thе option tо open separate branches in UAE.

LLC Inсоrроrаtіоn Services

Black Swan BSS works сlоѕеlу in coordination with clients to help in establishing their LLC right frоm the beginning to the end. We support our clients wіth strategic іdеаѕ and wоrk according to your business рlаn. It is to be noted that the time span of forming an LLC wіll bе about one to two wееkѕ frоm thе date оf receipt of all required dосumеntѕ. Black Swan provide assistance in:

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how to start a construction-company in dubai
Categories Business Setup, CONSTRUCTION COMPANY, DUBAI MAINLAND, FREE ZONE COMPANY, LLC COMPANY FORMATION, Tips

How to Start a Construction Company in Dubai

Setting up of Construction Company in Dubai is a Great Idea. Dubai is a land of opportunities! It has witnessed an immense growth and its skyline is dotted with eye-catching buildings including the tallest building in the world - the Burj Khalifa! As Dubai is racing ahead with a rising GDP, tax-free environment and a high standard of living, there is ample scope for many flexible business opportunities. Many new mega building projects are coming up in Dubai along with the economic boom and there is no better time than now to start a construction business in Dubai!

Steps for Construction Business Setup in Dubai

  1. Step 1: Determine whether you want to go for a company formation in Mainland or in the Free Zone.
  2. Step 2: Apply for registration at the Department of Economic Development (DED). A commercial license is required as construction business comes in the commercial sector category,  Read More
View all steps : https://bss.blackswanbss.com/construction-company-setup-in-dubai/
LLC Company Incorporate in Dubai UAE
Categories Business Setup, How To, LAUNDRY BUSINESS, LLC COMPANY FORMATION

LLC Company Incorporation in Dubai – UAE

LLC Company Formation : Today we can see many business professionals working independently as contractors. This is because technology has advanced a lot and communication across the world has become very effortless enabling more people to do business easily. A major chunk of these business ventures is being run as corporate entities. There are many advantages that go with operating as a corporate entity. It brings the simple home-based ventures at par with larger companies so that they can enjoy the same benefits too. You will find that your business is in a location that is acknowledged worldwide as being at an advantage both strategically and legally when you choose Dubai or the UAE for the incorporation of your business. Dubai holds within its ambits, many attractions for a modern entrepreneur. The development seen in various economic sectors and banking have got the investors making a beeline to Dubai and the UAE from across the world to establish their business.

Business setup in Dubai

Setting up a business in Dubai is a simple task if you abide by its law. While setting up a corporation in Dubai one of the first things you have to decide upon is the type of legal entity you want to establish. This is one of the most important aspects as you set up. The decision on the type of entity, will depend on the type of product, geographic location, strategic objectives, and scope of business operations such as locally or internationally., A company can be formed under 3 jurisdictions in the UAE. The three are, Mainland, Free Zone, and Offshore.

Limited liability Company Incorporation

The expanded form of LLC is Limited Liability Company. As the name itself suggests, incorporation as an LLC reduces the business owner’s legal responsibility and the financial obligation will be limited to responsibility for the corporate assets. This means that it is the corporate entity that will be held accountable for the activities of the business and not its owners or employees. But let’s be clear, this does not imply that they will not be probed for their actions in case of any legal problems. Limited Liability Company (LLC) is the most popular form of commercial enterprise for businesses that want to setup in UAE. This is because you will be guaranteed of flexibility in terms of structure. The icing on the cake is that there are no residency requirements involved. A Limited Liability Company can be formed by a maximum of 50 and minimum of 2 shareholders whose liability is based on their contribution by way of shares in the business capital. One condition that needs to be fulfilled is that for LLC company incorporation in Dubai a minimum of 51% shareholding by UAE nationals is required. We can assist you by finding interested UAE national (s) which will help fulfill this mandatory condition. For an overseas business entity to possess up to 49% shares of an LLC there are certain prerequisites. The requirements include various legal documents of the foreign corporate entity like Certificate of Incorporation, Memorandum and Articles of Association and Board Resolution resolving to hold shares in LLC. The Power of Attorney in the name of the manager at the LLC has to be notarized for legal acceptance in the country of incorporation of the parent company. In addition, the documents have to also be translated into Arabic and legalized at the Ministry of Foreign Affairs in UAE. These additional conditions make the process of incorporating business in Dubai or UAE a little bit more complex than otherwise as it can increase the cost of setting up an LLC and also increase the time taken.

Steps To Set Up an LLC in Dubai

  • Choose the appropriate legal structure for your company
  • Select the name and the decide the scope of activities under the company
  • Choose the right location for your business, like easy transportation, proximity to the market and such matters which are considered important for the success of your LLC
  • If your business involves certain kind of activities, you will need to get an approval from the relevant regulatory and government authorities
  • Get a proper office, warehouse and land for the operation of the company
  • Obtain a Tenancy Agreement, Trade License, Share Certificate and Certificate of Incorporation, Memorandum of Association (MOA) for setting up your LLC company
  • Get the labor cards, visas and all other relevant legal documentation completed
  • Collect all the necessary documents and submit them to the Department of Economic Development (DED) of the UAE

Documents Required to Start an LLC in Dubai

  • Registration application form from the DED
  • Trade name reservation
  •  Initial approval from the DED
  •  Location plan along with Tenancy contract for the office/warehouse attested by the Planning Department and Civil Defence Department of Dubai municipality
  • Memorandum of Association (MOA) duly attested from the public notary
  •  NOC or No objection letter from the Sponsor if the partner or the manager has a residence visa in the UAE, as applicable
  •  Professional/Bank reference letter for each shareholder
  •  Certified passport copies of all the shareholders and managers

Advantages of setting up LLC Company in Dubai

  • Apart from insurance, banking, and investment an LLC can conduct any business activity
  • The investors, along with their family can get investor’s visa because of their investor status in the Emirates
  • The number of visas that can be obtained is not limited
  • There are no restrictions on real estate ownership for an LLC
  • They also have the option of opening branches
  • It is easy for LLC to open international and corporate bank accounts and to get the benefit of credit facilities
  • A mainland company can also save costs as the LLC does not have to pay the standard 5% customs duty on imported goods
An LLC is exempted from many restrictions like on real estate ownership or on number of visas. Investors in the LLC company can avail investor’s visa under which they can get investor status in the Emirates along with their family. Not paying the standard 5% customs duty on imported goods also improves the bottom line. As you can see there are many advantages to starting an LLC and is a good investment option as it can conduct all types of business activity except, banking, investment and insurance.

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what-is-foreign-branch-limited-liability-company-in-uae-company-structures
Categories Business Setup, LLC COMPANY FORMATION

What is Foreign Branch & Limited Liability Company in UAE – Company Structures

The right structure of a Company and its location in the UAE depends on its business activities. This depends on the target customers and where they are located. If your company's business activities necessitate that you need to establish a company in the Mainland UAE entity, then a Foreign company like yours is left out with two options; To set up as an LLC (Limited Liability Company) as a Foreign Branch. You will be interested on: LLC Company Formation

Differences between an LLC and a Foreign Branch

  • A Foreign branch is owned 100% by the Mother Company. It will require an NSA (National Service Agent), also known as LSA (Local Service Agent), who is a local UAE individual/ company, owned by UAE Nationals alone.
  • An LLC has a UAE National (Company/individual) as the major shareholder (51%). In comparison, the foreign investor can hold no more than 49% of shares.
  • As the Foreign branch is a direct extension of the Mother Company, it does not bear separate legal standing. The Mother Company bears the full financial, legal, and technical liability for the Foreign branch office.
  • An LLC is considered a separate legal personality. For a Foreign Company establishing a new LLC in UAE, the liabilities are separate from the Mother Company. The shareholder Liability in an LLC is limited to the value of a subscription to the Share Capital.

Can A Foreign Branch be Converted into an LLC?

Processes for conversion of Foreign Branch into an LLC is available. This involves the DED and other UAE government departments. The process involves the reconstitution of new legal documents (MOA), termination of NSA, and a local UAE partner engagement. To know more about this process, please do Contact Us.

Cost differences between a UAE Foreign Branch and an LLC

Government fee: The government fee for a Foreign Branch is marginally higher than that of an LLC, as the Foreign Branch needs to register with the Ministry of Economy. Ministry of Economy Deposit: A bank guarantee of AED 50,000 needs deposition with the ministry of Economy in the case of a Foreign Branch. This guarantee needs to remain during the whole lifetime of the branch and is returned only upon deregistration.

Tax differences between a UAE Foreign Branch and an LLC

  • As the Foreign Branch accounts for the profits to its Mother Company, its income is taxable under the Mother Company's local tax jurisdiction.
  • LLC s are taxable under UAE tax, which is currently 0% Income Tax and 0% Corporation Tax.
  • Income from an LLC repatriated by a foreign shareholder as part of the group may be subjected to the foreign country's prevailing tax rate in case the income is the dividend. Profits generated in the UAE are 0% taxed. They will not be taxed again if a double taxation treaty exists between the two countries.
  • Expert advice is advisable on your tax position before you commit to either structure.

Setup your Business Today!

Process-of-setting-up-of--LLC-company-in-Oman
Categories Business, company, LLC COMPANY FORMATION, Oman

Process of Setting up of LLC Company in Oman

In Oman, an Omani LLC is the most frequently used business entity for foreigners who wish to do business in Oman for trading and manufacturing various business activities. To start a business in Oman, you should go through the setup process by the Omani authorities. The Oman company registration process are stated as follows:

The Reservation of Name

The Ministry of Commerce and Industry (MCI) must first approve the name of your company. Under the Omani law, a new company should not have the same name as the existing company. The MCI do require a higher starting share capital for the companies with certain words, such as “Oman”, in their name.

MCI Application

MCI application involves preparing and submitting the following documents as stated below:

The Foreign Shareholder Documents

Each shareholder having a corporate entity must substantially provide their constitutional documents, board resolution, certificate of incorporation, and power of attorney

Omani Shareholder Documents

Every shareholder must provide certificate of registration for the company, an MCI computer printout, authorized signatory form, Oman Chamber of Commerce and Industry (OCCI) certificate and shareholders’ resolution. A constitutive contract along with an authorized signatory form, frames a part of the constitutional documents of an LLC.

Bank Certificate

The bank certificate is obtained from a bank in Oman and it uses as evidence of compliance with the LLC’s capital requirements

The OCCI Registration

The essential step of the registration process is mainly obtained immediately after the MCI completes the registration examination of your registered company and thereby approve the certificate.

Other types of Approvals

Approvals depending on the LLC’s intends on business activities, and further governmental approvals may be required accordingly.

Post-Registration

Once the LLC registration gets approved and you get all the necessary Certificates from the Ministry, you need to organize and obtain the below documents as follows :
  • A municipality license for the registration.
  • Tax registration of the company.
  • Registration with the Ministry of Manpower for applying for visas and labour clearances.
  • The Registration of business with the Royal Oman Police.
  • Import or export license that depends on the nature of the business
  • Industrial, Environmental, other essential permits and licenses, depending on the nature of the business are required.
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