Limited Liability Company (LLC) is the most common type of company setup in Dubai. For an LLC, the number of shareholders may range from 2 to 50, with the liability of a shareholder being limited to one’s share in the capital. An LLC may conduct any type of business activity except banking, insurance, or money investment. An expatriate shareholder may own a maximum of 49% of the shares of an LLC ion Dubai, with the company requiring an Emirati local sponsor, also referred to as a silent partner, with 51% of share in it. However, profit and losses can be shared at a ratio different from the share capital. Trading LLCs are allowed to carry out business in their local emirate as well as to export and import freely.
In Dubai, the Department of Economic Development (DED) is the government body authorized to issue licences for LLCs and is responsible for classifying and regulating the types of economic activities that may be undertaken by such a company.
To set up an LLC in Dubai, the following details are required:
- Trade name of the company
- Registered office location
- Names, nationalities and addresses of the shareholders
- Share capital of each shareholder
- Names and nationalities of the company managers
- Scheme of distribution of profits and losses, which may not necessarily be in the same proportion as the share capital
When it comes to company incorporation in Dubai, an LLC is the commonly preferred option, suiting most businesses. Commitbiz Management Consultants helps corporates and entrepreneurs set up their business in Dubai. Our team of business consultants can help you out with company registration, licensing, taxation, accounting, bookkeeping, and company secretarial services. If you are looking to start a company in Dubai, do get in touch with us – for any guidance or advice.