It’s paramount to choose the ideal business structure for your dream venture to succeed in Dubai’s competitive marketplace. LLC company formation in Dubai continues to gain popularity, thanks to its low barrier to entry, business flexibility, and allowance for 100% foreign ownership.
The best-in-class working ecosystem and advanced infrastructure facilities in the UAE also have a key role in developing the country as a premier business hub. Furthermore, opening an LLC doesn’t consume much time if you follow the right steps and submit the correct documents. You don’t need to worry about any legal procedures related to LLC formation in the Emirates when you collaborate with the business experts at Shuraa that take care of everything for you.
What do you need to Know about a Limited Liability Company?
A limited liability company is the most popular legal business structure in the UAE. You can have up to 50 shareholders under an LLC, and the minimum criteria you need to meet is 2 partners. Earlier, an LLC company formation in Dubai mainland required you to partner with a local sponsor (UAE national) who was designated to have 51% ownership of your company.
However, with the amendments in the Companies Law, you no longer need a local sponsor. Expatriates can now enjoy complete ownership of their businesses in the UAE by partnering with a reliable local service agent (LSA). The LSA won’t have any shareholding in your LLC and would only help you with the paperwork, translation, etc., needed for company incorporation.
Business owners get access to the world-famous local market of Dubai by launching an LLC in the mainland region. This is an exclusive privilege that free zone establishments can’t enjoy. Moreover, LLC formation is also beneficial on the financial forefront as you get several tax exemptions, and company formation is also affordable.
What are the Various Benefits for LLC Company Formation in the UAE?
An LLC has several benefits from a business standpoint that differentiates it from other legal structures in the Emirates. Here, we list down a few of the many advantages of LLC company formation in the UAE:
1. Low Barrier to Entry
You can set up an LLC in Dubai at very affordable costs. If your business activities don’t require any external approvals or certificates from other authorities, you can form an LLC for as low as AED 20,000. The best part about company formation in the UAE is the sheer transparency with regard to all the payments and procedures.
Everything’s well documented, and all the government fees are communicated to business owners well in advance. Furthermore, there aren’t any hidden charges and additional costs that might disrupt your financial plans. All of this makes the establishment of a limited liability company a very safe and affordable option.
2. Limited Liability Protection
Financial security is a bliss to have, especially when you’re a new-age investor or a budding entrepreneur with limited funds and limitless aspirations. That’s exactly what you get when you open an LLC in Dubai. Limited liability protection applies to all the shareholders in the company and it separates the finances of the shareholders from that of the legal entity.
It becomes easier to manage personal funds with limited liability protection since each shareholder is only liable to the extent of the capital that they’ve invested in the business. The legal advisors at Shuraa are always there to help you with anything related to LLC formation, liability protection, documentation, and much more.
3. Diverse Business Opportunities
Each legal business entity in the UAE must have a valid trading license. This license is your legal confirmation to carry out all the business activities covered in the document. The Department of Economic Development (DED) maintains an exhaustive list of more than 2,000 permissible business activities.
Therefore, you don’t have to confine your business model. In case any activity isn’t covered, you can apply for external approval to the concerned authority and get legal permission to carry out that activity too.
4. Multiple Shareholding
You can have individuals, corporate entities, etc., as your legal business partner in an LLC structure. Moreover, it’s suitable for businesses of all sizes – be it a budding startup or a large enterprise since you can have up to 50 shareholders in an LLC company formation in Dubai.
Business owners looking to analyze the market conditions in partnership with other stakeholders can launch their LLC with just 2 members. You can always expand your business once you’re confident to make an educated decision regarding your corporate stay in the UAE.
5. Hassle-Free Visa Management
An LLC also provides you a residential visa that legitimizes your legal stay in the UAE for an agreed term of 3 years. The best part is that the visa application process is straightforward, and you can easily apply for visas for your family, relatives, and domestic staff too.
The rules regarding visas clearly state that you’ll get an additional visa allowance for every 100 sq. feet of business area that you acquire for your venture. Hassle-free visa procurement empowers you to focus on your business activities and growth without worrying about your stay in the UAE.
What Paperwork is Involved in Setting Up an LLC in Dubai?
The UAE’s government is very vigilant when it comes to the documentation and compliance of all the businesses operating in the country. Here’s all the paperwork you need to take care of:
Pre Initial Approval
The list of documents required for initial approval:
- Passport copy of applicant (with visa copy)
- Registration application form from DED
- Receipt of trade name reservation
- Photocopy of applicant’s naturalization identification (confined to UAE nationals only)
- NOC letter for applicant’s current service agent/sponsor (not applicable for GCC nationals)
- Approvals granted by other governing bodies depending on the business type
Post Initial Approval
Following documents are needed once you get the initial approval:
- Receipt of initial approval
- Office/warehouse tenancy contract attested by the Dubai municipality’s planning and civil defense department along with location plan
- Original, duly validated copy of the MoA by the notary public
- If the partner is an existing corporate organization in the UAE or abroad, the MoA and the commercial registration certificate should be certified and subsequently translated into Arabic by the concerned authorities (UAE Embassy, Ministry of Foreign Affairs, etc.)
Launch Your LLC in Dubai
LLC company formation in the UAE opens the doors for several lucrative business opportunities within and outside the mainland. You no longer need a local sponsor to form an LLC in the mainland region if your business activities meet the required criteria. So, what’s the wait for? Launch your LLC in Dubai today and enjoy the various business benefits offered by the government.
