LLC Comany Formation in Dubai : In Dubai, rules stipulate that the minimum number of shareholders for a limited-liability company (LLC) is two and the maximum 50. The liability of shareholders varies depending on their shares in the capital. All Business activities exempting insurance, banking, or money investment can be conducted by the LLC.
The Department of Economic Development (DED) is authorised to issue licenses for all mainland (onshore) UAE legal entities which are also governed by the UAE Commercial Companies Law (CCL). Foreign investors setting up businesses in mainland UAE have an edge over businesses in Free Zones as there is no territorial restriction, business activities or the location of offices/premises. A mainland company has the freedom to trade anywhere in the UAE or wider Gulf Cooperation Council (GCC) states, including all the Free Zones & an extensive range of real estate options to choose from. Business Setup in Dubai dose’t take much time while dealing with Black Swan.
Limited Liability Company (LLC)
The Limited Liability Company (LLC) is the standard type of UAE mainland company licensed by the DED to function in UAE. DED also classifies and regulates the types of economic activity by the LLCs.
Advantages of LLC over Free Zone companies:
- Can trade anywhere in the UAE or GCC
- No restriction on real estate ownership
- No restriction on the number of visas that can be obtained.
- No minimum share capital requirements
- Need not pay the standard 5% customs duty on imported goods
Silent Partner in LLC Company
The local UAE sponsor in many Dubai Limited Liability Companies remain as a “silent partner”. An annual “sponsorship fee” is paid to the local UAE sponsor for giving up management control of the company to the foreign investor.