There are various types of business setup options in Dubai. However, the most common form of business structure in the UAE is a Limited Liability company, or LLC.
Seeking help from a business setup consultant in UAE can starting an LLC company in Dubai very easy. It is also important to know the steps of LLC business setup in Dubai, to avoid confusions or complications.
What is Limited Liability Company (LLC) in Dubai?
A Limited Liability Company (LLC) is the most common type of business structure in the UAE. Its key characteristic is that it can be formed by a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their shares in the business capital.
Expatriates often choose an LLC for their business setup in Dubai because it allows the maximum retention shares to the expatriate for the local business, which is 49%. This is because of the UAE law which states that foreigners must have a local investor in order to legally start and run a business in the Emirate.
llc company in Dubai mainland
Steps for LLC Business Setup in Dubai, UAE
An LLC company is established in the mainland. The Department of Economic Development (DED) has the authority to issue a license for Limited Liability Company (LLC) business setup in Dubai.
The steps for setting up an LLC company are as follows:
- Register commercial name and determine business activities that will be conducted
- Find an Emirati Local Sponsor who agrees to hold at least 51% shares
- Choose location for the registered company and obtain tenancy contract
- Register the company with the Department of Economic Development
- Drafting and notarizing the company’s Memorandum and Articles of Association
- Submit all required documents and business license application form to DED
Moreover, depending on the industry and business activities that the LLC intends to operate in, you may be required to obtain approval from the relevant authorities.
Documents Required for LLC Business Setup in UAE
The Department of Economic Development (DED) will ask for certain documentation before granting the license for LLC business setup in Dubai.
You may be asked for following documentation:
- Application form of registration from Dubai Economic Department
- Passports copy of expatriate investor
- Passports copy of local sponsor
- Passports copy of managers and shareholders of the company
- No Objection Certificate (NOC) from sponsor if the shareholder or manager has residence visa in UAE
- Copy of Emirates ID (for UAE nationals)
- Registration of trade name and initial approval from DED
- Location plan and tenancy contract of office by the Dubai Municipality Planning Department and Civil Defense Department
- Memorandum of Association (MOA) duly attested from public notary
- Bank Reference Letter for all shareholders
This is the process for LLC business setup in Dubai, UAE. Establishing an LLC can present great business opportunities and benefits in the Emirate. We recommend assistance from a company setup consultancy, for speedy and efficient registration. Contact us to learn more.
For further information and assistance on how to register your LLC company in the Dubai, UAE, speak with our experienced consultants. Book your FREE consultation today at +971 558654072, +97143827780 or drop us a line on info@test.companysetup.ae
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