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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