Telephone Numbers
Telephone Numbers
LLC – Limited Company Formation in Dubai
For detailed information +90 542 381 3868 'Call.
An LLC, or Limited Liability Company, is a popular business structure that offers a blend of personal liability protection with flexibility in taxation and management. LLCs are a favored choice for small businesses and entrepreneurs because they are designed to shield their owners/shareholders from personal responsibility for business debts and liabilities. In addition to this protection, an LLC provides greater flexibility in management and taxation compared to other corporate structures. An LLC can be owned by a single individual or multiple members and can be used for any legitimate business purpose.
In Dubai, you can establish an LLC with a minimum of one member and a maximum of 100 shareholders. The liability of each member is limited to their share in the company's capital, which fully protects shareholders from liability under Dubai's corporate regulations.
Limited Liability Partnerships (LLPs) and Limited Liability Companies (LLCs) both combine elements of partnerships and corporations. These two business forms differ in terms of management, liability, insurance, tax benefits, and other factors. The distinction between an LLP and an LLC is minimal; however, Asian countries tend to use the term LLP more frequently than LLC.
The free trade zones located in the UAE make it exceptionally easy to start and run a business. With 100% ownership, no income tax, and first-class infrastructure, there is no better environment for conducting business. The International Monetary Fund (IMF) correctly predicted that the UAE's economy would soar in 2022. Dubai's economy has grown tremendously since then, making it an ideal time to invest in the region. Businesses in Dubai experienced massive growth throughout 2022.
For example, Savills estimated that the Dubai real estate market would see $35 billion in transactions in 2022. The UAE welcomed 7.12 million tourists in the first half of 2022 alone, an increase of over 183% from the 2.52 million tourists in the same period of 2021.
LLC companies have become the most popular business structure in the UAE due to their outstanding advantages. With a minimum of one and a maximum of one hundred shareholders, LLC companies can trade anywhere in Dubai and other GCC countries and can also hold shares in any other company. Furthermore, an LLC has no applicable income tax and no fixed capital requirement. You must first register your business name, after which the Department of Economy and Tourism will issue you a business license. You will also need to submit several documents. Once the visa application process is approved, you are finished and can then open a corporate bank account. Later in this guide, we will explain the entire step-by-step process of setting up an LLC company in Dubai.
An LLC (Limited Liability Company) can trade anywhere in the UAE and GCC countries and has no fixed capital requirement. While there is no personal income tax, the corporate tax landscape has evolved. A limited liability company registered in a free zone and conducting business outside the UAE will not have to pay tax. However, companies registered on the UAE mainland and doing business in the local market will be required to pay a 9% corporate tax on profits exceeding AED 375,000. This still benefits entrepreneurs and businesses looking to establish a business in the UAE, as they save significantly on taxes and retain most of their profits. LLCs also benefit from incentives like double taxation agreements with other countries.
There is no general application fee for LLC company setup in Dubai. You only need to pay the LLC formation cost. Thanks to the UAE's Instant License initiatives, you can obtain a license quickly. Registering an LLC company in Dubai takes only about ninety minutes to register with the DED (Department of Economic Development). The only potential delay could be issues with government certifications.
You do not need to have a minimum capital to form an LLC in the UAE. The shareholder will need to show a registered capital, for instance, of AED 100,000, in the Memorandum of Association, which will not be required to be paid up or deposited.
UAE LLC companies have a broader range of business activities to choose from, with few to no restrictions. Without the intervention of a UAE national sponsor, your LLC firm can conduct legally independent business within the UAE. The UAE offers over 2,000 business activities across industrial, commercial, professional, tourism, agricultural, and vocational sectors. You can also establish an LLC firm with various commercial ventures, provided a DED permit is obtained.
UAE entrepreneurs can get an unlimited number of work visas when they form an LLC. You also receive an investor visa, which is valid for two years. This allows you to obtain visas for your family members if you wish to bring them to the UAE. After one year of successful business operations, having equity, and earning over AED 2 million, a foreign national can obtain the long-term, prestigious Golden Visa for themselves and their family.
Most business activity license types no longer require a UAE National Sponsor. This allows for 100% foreign ownership of businesses outside of free zones. Therefore, various types of LLPs in Dubai are permitted to have 100% foreign ownership under the Commercial Companies Law.
Dubai offers a world-class infrastructure that is unrivaled anywhere else on the globe. From some of the world's tallest buildings to the most luxurious hotels, Dubai has it all. With its growing population of millionaires and billionaires, Dubai is rapidly becoming the go-to destination for the rich and famous.
The UAE government offers over 2,000 business activity options for an LLC, so you can easily find what you are looking for. However, it is crucial to conduct market research before selecting an activity. This will help you analyze whether there is potential to develop your business idea. Making the right choice during business registration in Dubai is critical. World Company Setup can help you find and plan the best commercial activities for your venture.
When opening an LLC company, your location affects both your income and your legal responsibilities. To make the most of your office, you should choose a place that is accessible to your market. You must consider various factors when deciding on the business location, such as budget, space, employees, technological requirements, etc. You will need a lease or tenancy contract to acquire office space. Decide on the location and get the initial approval certificate from the DED. You cannot get this certificate if your trade name is rejected. Many companies are registered in the UAE without leasing office space for the first year, which saves costs for the foreign national and provides the advantage of testing the waters in the market.
After deciding on the types of operations your company will be involved in, choose a name for your firm. You need to reserve your business name to avoid violating naming convention laws. You can list potential names for your company, considering its products, services, objectives, target market, and more. Business owners must adhere to the UAE government's company naming rules. World Company Setup can help you with your naming and ensure your business name is legitimate.
You must create a Memorandum of Association (MOA) for your company, outlining its commercial activities. You need to include details about your company's legal position and rights. After that, you define its connection with your company's shareholders and its original objectives. You must then submit your MOA with the lease or tenancy contract to the authorities.
Once the required authorities approve your company's activities, you can receive the MOA and other legal documents, including the trade license.
The price of an LLC license in Dubai generally starts from AED 18,500. Foreign trade names that are not in Arabic will incur an additional fee of AED 2,000. To renew an LLC license in Dubai, approximately AED 10,000 to AED 15,000 is required. Your limited liability business registration in Dubai will cost between AED 18,500 and AED 35,000. However, prices vary depending on the services and industries.
To learn more about the costs of setting up an LLC company in Dubai, connect with our experts at World Company Setup.
When you establish an LLC in the UAE, the Department of Economic Development (DED) requires certain documents. You can submit these directly, but you can also hire a representative to streamline the paperwork.
Are you a business owner concerned about your personal assets being at risk from business debts and lawsuits? You can protect yourself from these risks with an LLC company setup in Dubai.
We keep your assets secure. We guide you in filling out the correct paperwork, help you prepare legal documents like operating agreements, and provide advice on tax management and other crucial financial aspects of running an LLC. Our process is fast and straightforward. You can have an LLC established in Dubai within a few days. Our team of business setup experts also helps you decide if an LLC is the right choice for your business.
An LLC or limited liability company is one type of business structure. It offers personal liability protection and flexibility with taxes and management. LLCs are popular among small businesses and entrepreneurs. They are designed to protect owners/shareholders from personal liability for business debts and obligations.
+90 542 381 3868
+971 58 5204103