Advantages of Setting Up An LLC In Dubai

Advantages of Setting Up An LLC In Dubai

by Zaara 03, Jun 2020

UAE is famous for activities like launching new businesses. The Department of Economic Development (DED) proceeded a staggering 21,146 new business licenses in 2016 in Dubai alone. The most favored company type is the tried and believed Limited Liability Company, or LLC, among these new businesses and the 125,000+ license renewals issued every year.

Any business activity, eliminating insurance, banking, and investment, can be conducted by an LLC. You can obtain any number of visas; there are no restrictions on the number of permits obtained. The investors can avail Investor's visa of an LLC company in Dubai under which they can receive investor rank in the Emirate along with their family.

Limited Liability Company (LLC)

The most common form of Onshore entity used by foreign investors for setting up a Company in the UAE and is a standard kind of company in the UAE mainland. Because of the ease of formation and freedom of business practice, this method of incorporation is popular. The government body authorized to issue all licenses for LLCs is the Department of Economic Development (DED), which is responsible for and classifying regulating the types of economic activity that might undertake.

The Individual Emirates or activities require the LLC to have registered in the Emirate where it would make supplies or provide service, although the LLC can conduct business anywhere. There is no restriction on the number of visas that can be obtained or on real estate ownership. The standard 5 percent customs duty on imported goods is not required to be paid by a mainland company.

Capital, Partners, And Profit Sharing

At least two and an utmost of fifty partners can an LLC have. The liability of each partner relies on the extent of his share in the capital. An LLC can also have a single owner who should be a legal citizen, following the new law that came into effect during 2015. Out of the total capital, foreign ownership is restricted to 49 percent. The capital investment ratio can, however, be different from the profit-sharing rate. An LLC, except banking, can conduct any lawful activity, investment of money for others, and insurance. Specific actions are restricted for foreign ownership additionally.

Document Incorporation

An LLC has to prepare a document during incorporation, which is commonly called the Memorandum of Association. This document is executed between the partners and is notarized in UAE courts which essentially specifies, among other things,

  • The nationalities, names, and addresses of the partners
  • The amount of capital, each partner's share and the profit sharing ratio among the partners
  • The name, objectives and principal office of the company
  • The method of management of the company, titles, and addresses of managers

LLC Management

The Memorandum of Association sets out the management method of the LLC. The administration shall be assumed by one or more Manager (s). The Manager has to be a natural person and can be one of the partners or a non-partner. A corporate entity cannot be named as the Manager. All such individuals designated as managers in the incorporation document are named on the License of the LLC.

Unless the Manager's powers are specified in the Memorandum of Association, the Manager shall have full authority to manage the company, and his acts of disposition shall be binding upon the company. The Manager shall be liable towards the company, its partners and third parties for all acts of fraud or abuse of power and any violation of the Law or the Memorandum of Association, and all errors in management. Any clause or condition can not limit such liability.

Advantages Of Setting Up An LLC In Dubai:

An LLC can direct any business activity, eliminating investment, insurance, and banking. There aren't any constraints on the number of visas that can be acquired. The investors of an LLC company can take advantage of the Investor's visa under which they can get an investor positions in the Emirate accompanying their household.

An LLC is spared from paying the standard of 5 percent customs duty on buy-in goods. Also, limitations are not imposed on real estate ownership.

  • The accountability of the shareholders is limited to their divisions in the company's funds;
  • An LLC may direct any type of pursuit except for banking, investment or insurance;
  • An LLC can legally market anywhere in the UAE, counting the Free Zones;
  • No cutbacks on the number of visas that can be obtained;
  • No limits on the location where the company can rent/buy office establishment;
  • The government has permanently waived any post capital requirements.

Company Incorporation Requiring Special Approvals and Licenses

  • Tourism activities
  • Health Care activities
  • Architectural and engineering consultancy
  • Shipping, freight forwarding, and logistics activities
  • Companies in Dubai World Communities (Trakhees)
  • Educational services

LLC Incorporation Services

Commitbiz closely interacts with clients to help them form their company in UAE, from the initial to the final phase and also assists them with strategic ideas. We support in;

  • Getting agreement and clearances from numerous departments
  • Drafting Memorandum of Association and other compulsory agreements
  • Finding local partners
  • Opening bank accounts
  • Finding a proper office location
  • Handling other documentation formalities

The time to form a Limited Liability Company will be approximately 1-2 weeks from the date of receipt of all required documents. Contact us today!


How many partners can a Dubai LLC hold?

Maximum of 50 partners.

Can an LLC be formed by a single owner in Dubai?

Yes, for which the owner needs to be a UAE citizen.

What should the Memorandum of Association contain for a Limited Liability Company Dubai?

It contains

  • Partners details

  • Investment and profit-sharing ratio

  • Company details

  • Manager details

Is LLC difficult to set up?

No, it is easy and less complex compared to corporations. Stockholders and owners hold no restrictions.

What are the benefits of setting up an LLC company in Dubai?

The primary benefits include –

  • An LLC can conduct any type of business activity, excluding insurance, banking, and investment.

  • There aren't any restrictions on the number of visas that can be obtained.

  • The investors of an LLC company can avail investor's visa under which they can get investor status in the Emirate along with their family.

  • An LLC is exempted from paying the standard 5% customs duty on imported goods. Also, restrictions are not imposed on real estate ownership.

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