An essential step when setting up a company in Dubai is selecting the appropriate business structure. The business structure is the backbone of any company as it determines how the business operates and things like its financial obligations, taxation and liability.
Over the years, Limited Liability Company (LLC) formation in Dubai has emerged as a popular choice among entrepreneurs for various reasons. Read this article to understand the details of the LLC formation in Dubai.
Back to topWhat is a Limited Liability Company?
A Limited Liability Company (LLC) is a type of business structure in which the partners are liable only for the amount invested in the company. This legal entity offers asset protection, complete foreign ownership and tax incentives, among other things. Starting an LLC in Dubai is simple and requires a minimum of two and a maximum of fifty partners. The partners can be individuals or companies.
Back to topWhich License to Avail for LLC Formation in Dubai?
Entrepreneurs like you can conduct various business activities in Dubai such as trading, manufacturing, tourism, agriculture and more by setting up an LLC. However, the appropriate license must be availed to start operations. Some of these are commercial, industrial, professional, agricultural and tourism licenses. In Dubai, the Department of Economic Development (DED) or the relevant free zone authorities are responsible for issuing these legal documents.
Back to topHow to Start a Limited Liability Company in Dubai?
To successfully incorporate an LLC in Dubai, the process mentioned below must be followed:
Step 1 - You must decide on a trade name for the business setup in Dubai and obtain approval from DED. Ensure the chosen name is unique and abides by UAE’s naming conventions.
Step 2 - Select a business activity you wish to conduct in the Emirate.
Step 3 - As choosing the right jurisdiction is essential for company setup, you must assess the appropriate one as per your business needs and budget. You can pick between Dubai mainland and the freezones.
Step 4 - Draft the Memorandum of Association (MoA) and Articles of Association (AoA) before submitting them to the relevant authorities with the required documents and application.
Step 5 - Apply for the appropriate business license by paying the fees. Business setup consultants from Commitbiz can help you determine the relevant one and guide you through the entire process.
Back to topDocuments Required for LLC Company Formation in Dubai
Some of the necessary paperwork that must be submitted are passport copies of all partners, copies of Emirates ID, lease contracts, board resolution, power of attorney, bank statements, and reference letter.
Commitbiz is a pioneer in business registration, having assisted over 10,000 entrepreneurs in setting up their businesses across UAE and the Middle East. We guarantee company formation in a smooth and hassle-free manner. Ready to get started on your business journey in UAE? Contact us!
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