Dubai has emerged as the top class business destination in the middle east. Every year Dubai drives the attraction of millions of the investors who eagerly waiting for the opportunities to invest their capital in Dubai. Limited Liabilities Company (LLC) formation has always been a favorite form of the company formation for the businessmen because of the tax-free policies. Being a cosmopolitan city Dubai is ranked as the commercial hub for business investors all over the globe.
For a Limited Liability Company, Formation a minimum of 2 shareholders and a maximum of 50 shareholders can be required to own the company's share capital. LLC is tax flexible, and differential profit-sharing arrangements are also possible through this type of company formation. For maximum legal ownership, i.e. 49%, to an expatriate for a local business, many companies with foreign partners choose for an LLC. As it is compulsory to have a UAE national as a partner in the LLC of shareholding 51%, the prospective investor has the option to select the one UAE national (sponsor) as a business partner in the company.
This provides the foreign investor with a significant edge as 51% legal equity is with a local partner. Insurance, Banking, and money investment are some of the business activities that are restricted to perform the LLC formation.
The requirement of Setting up an LLC
The formation of an LLC company in the UAE is less troublesome for businesspersons. The capital requirement law in Dubai has canceled that eased the LLC company formation registration without the auditor's certificate and without having a bank deposit certificate. There are some benefits of LLC company formation in the UAE.
- For LLC company formation no minimum capital is required.
- Easy accessibility of the corporate bank account and credit facilities.
- Without interruption from the local partner, investors can manage their business.
Documents Required for LLC Company Formation
- Passport copy of the manager of the company
- Passport copy of the local sponsor
- Investor’s passport copy
- If the partner has a residence visa in the UAE, the NOC letter from the sponsor.
- Application form for registration from the Dubai Economic Department (DED).
- Trade name registration form
- Tenancy contract for the warehouse or office attested by the planning and department and civil defense department of Dubai municipality.
- Initial approval of the Dubai Economic Department
- A memorandum or article of Association attested from the public notary
Steps to Register The LLC Company Formation
There are certain steps that you should follow for the company formation under LLC.
- The first step includes Registering the company with the Department of Economic Development, the governing authority of Dubai.
- Notarizing and Drafting and the company’s Articles of Association and Memorandum.
- Submitting all the business license application form and required documents and with the Department of Economic Development
- Registering with the Dubai Commercial Register
- Upon incorporation in the UAE, enrolling one’s employees with the Ministry of Labour and General Authority for Pension and Social Security
Benefits of LLC Company Formation
- An LLC can trade or incorporate business legally anywhere in the UAE, including all the Free Zones.
- There are no restrictions on the location where the company can buy or rent office premises.
- The liability of the shareholders is limited to their shares in the company’s capital.
- An LLC may conduct any type of business activities except for insurance, banking or investment.
- The number of visas that can be obtained of any amount. There is no restriction on the number of visas.
- The government has permanently waived any paid-up capital requirements.
The management system of the company shows the polished structure of the organization, so a minimum of one or more with no maximum number manager can be appointed. The Manager does not have to be citizens or residents of the UAE but can possess all the financial powers and administrative structure. Without being a shareholder. Every company must maintain accounting and bookkeeping services that maintain records at their head office at a regular interval. International accounting practices and standards should be followed by the organization, providing an accurate and precise view of the estimation of profits and losses.
We at Commitbiz provide every kind of assistance for your company formation in any zone. Registration, Licensing, Document verification are some of our prime services. Our business expert will guide you at each step of your business incorporation. The necessary consultancies will be provided by our professionals. Contact us today to avail of all the services provided by our company. We will be glad to help you with your company incorporation.