One way of setting up a business in Dubai is through a Limited Liability Company or LLC. An LLC is the most prevalent company type in UAE. It can be created by a minimum of 2 shareholders and a maximum of 50 shareholders, whose liability is limited to their business capital shares.
Many companies opt for an LLC with foreign partners because this is the only choice that gives maximum legal ownership to an expatriate for a local business, i.e. 100 percent. The latest amendments to the companies law have empowered expatriates to enjoy complete business ownership.
LLC is versatile and provisions for mutual profit sharing are feasible, too. It gives the international investor a huge edge as they have 100 percent legal equity of their LLC.
In case one is interested in LLC setup in Dubai, Knack Intl provides all the necessary assistance from document registration to finding the investor-friendly zone.
Setting up LLC company Dubai
The following steps mentioned below are required to set up LLC in Dubai.
- Company registration in Dubai with the Department of Economic Development.
- Drafting and notarizing the company’s Memorandum and Articles of Association.
- Submitting all the required documents and business license application forms with the Department of Economic Development.
Registering with the Dubai Commercial Register. - Upon incorporation, registering one’s employees with the Ministry of Labour and General Authority for Pension and Social Security.
Dubai LLC Formation Cost
- Commercial license fees
- General trading activity Fees
- Non-Arabic trade name fess
- Market Fees
- Name board fees
- Service fees
- Partner accommodation fess
- Chamber of commerce fees
- Economy ministry fees
- Local fees
Above are some of the most common fees to be paid, if anyone wishes to set up an LLC in Dubai.
LLC registration Dubai
Compliance is made with the DED by filling the application form for the trade name and the application form for the warrant. If one or both members are corporations, then the LLC Subscription is approved by a copy of the Certificate of Incorporation along with an Association Memorandum and a Board of Directors resolution. It will also be appropriate to have a Power of Attorney authorizing a person to act on behalf of the shareholders having formed the LLC.
Furthermore, copies of shareholders ‘ passports and suggested general manager and directors. The DED will then issue an initial approval to this effect. Supplementary approvals may be required depending on the activities proposed by the LLC.
The 2011 Licensing Law officially referred to as the “Law of the Organization of Economic Activities Practice in the Dubai Emirate” simplified the licensing process where the DED obtains approvals from the ministries and/or departments needed.
Once the initial approval and approvals are received from the appropriate ministries and/or agencies, the Power of Attorney holder must sign an LLC formation contract before a notary. Once the contract is fully completed the above-mentioned documents need to be obtained for LLC registration in Dubai.