LLC Company Formation in Dubai : Dubai LLC Company Formation Guide. Your ultimate guide to Limited Liability Company Formation and Registration in Dubai for investors and businessmen. Explore LLC company formation various options, procedures and requirements. Discover LCC company formation procedure cost, price, Dubai LCC company formation agents & consultants. LLC company formation in Dubai has many opportunities for investors and businessmen. Limited Liability Company (LLC) is the most common form business in UAE. A Limited Liability Company can be formed by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the businesses capital.
Most companies with foreign partners have opted for the Limited Liability Company, due to the fact that this is the only option that’ll give maximum legal ownership i.e. 49% to the expatriates for a local business. As it is mandatory to have a UAE national as a partner in the LLC (51% shareholding) prospective investor has the option to choose the one UAE national (sponsor) as a partner in the company. LLC is flexible and differential profit sharing arrangements also possible. This permits the foreign investor a great edge as 51% legal equity is with local partner.
LLC Company Formation in Dubai
Over the past decade, Dubai has emerged as one of the top business destinations in the world and attracts millions in LLC Company Formation in Dubai. Dubai has continued to be a favorite location for investors around the world for Company Formation- LLC as it remains tax free and diverse in its policy. Most of the investors prefer to setup Limited Liability Company or LLC Company formation in Dubai.
The Limited Liability Company can be formed with minimum of 2 and a maximum of 50 shareholders and the liability of shareholders are limited to their own share in the company capital. The LLC Companies are restricted to perform some kind of business activities like banking, insurance or money investment. A Limited Liability Company requires an Emirati local partner or silent partner with 51% of share in the company and the expatriate investor will hold 49% of share. After all legal procedures are done, this local partner or silent partner will make an agreement in the court that he has no involvement in the company.
REQUIREMENTS FOR LLC COMPANY FORMATION IN DUBAI
CAPITAL REQUIREMENT FOR LLC COMPANY FORMATION DUBAI
On 10th August 2009, the capital requirement law was cancelled and in Dubai a Limited Liability Company can be registered without having Bank Deposit Certificate and Auditor Certificate. Thus making LLC Company Formation in Dubai less burdensome for the expirates.
LLC COMPANY SETUP PROCEDURES IN DUBAI
- Choose appropriate legal structure of the business
- Select the name and the activities involved in your application.
- Choose proper location for your llc company formation.
- Compile & Submit the required document to get the license from Deportment of Economic Development of UAE
- For some special business activities, get approvals from relevant regulatory & Government authorities.
- Get office / Virtual Office/ Warehouse / Land for the company formation operations
- Obtaining Trade License, Certificate of Incorporation, Memorandum of Association, Share Certificates, Tenancy Agreement for your LLC Company Setup
- Processing visas, labour cards and other legal documents
REQUIRED DOCUMENTS FOR LLC COMPANY FORMATION IN DUBAI
- Investor’s passport copy
- Local Sponsor’s passport copy
- Manager’s Passport copy
- NOC letter from the sponsor if the partner or the Manger has a residence visa in the UAE
- Registration application form from Dubai Economic Department
- Trade name reservation
- Initial approval from Dubai Economic Department
- Tenancy contract for the Office/warehouse attested by planning department and civil defense department of Dubai municipality along with location plan
- Memorandum of Association duly attested from public notary
LLC company formation agents and consultants in Dubai closely interact with clients to handle their LLC incorporation from starting point to finish line and assist with strategic ideas, work with their business plan : Getting approvals and clearances from various departments, Drafting Memorandum of Association and other necessary agreements; Help to bring local equity; Finding local partners; Helping to open bank accounts; Assisting to find proper office location; Handle other documentation formalities. The span of time to form a Limited Liability company will be approximately 1-2 weeks from the date of receipt of all required documents.
LLC company formation agents and consultants in Dubai can provide complete assistance for clients who are interested in LLC company formation in Dubai. LLC company formation consultants in Dubai clearly understand your requirements, your budget, nature of your business activity, complete details of your partners and gives complete assistance in LLC Company formation in Dubai. LLC company formation agents in Dubai can also help you to find proper location for setting up llc company and can provide reliable local sponsor for your llc company formation Dubai. LLC company formation agents and consultants in Dubai can take care of the entire incorporation process and obtain trade license and all other legal documents of the company within the shortest period of time.
Dubai LLC Company Formation Cost & Prices
Dubai LLC Company Formation Cost & Prices : Cost Breakup for LLC Company Formation in Dubai. Explore company formation procedure cost and prices.
- Initial approval from economic department cost & prices : 110 AED
- Trade name approval cost & prices : 210 AED – One time Expense
- Notary fees for court (depend on company share capital) : 900 AED
- Typing LLC contract (Arabic & English) cost & prices : 1250 AED
- Ministry of economic fees and expenses : 3000 AED
- Trade license fees and cost : 200 AED
- Owner accommodation fees (per partner) 1000 – Cost Per year
- Government cultural cost & prices : 10 AED Per year
- Trade Name Advertisement cost & prices : 500 AED Per year
- Commercial license – Tejari fees: 150 AED Per year
- Chamber of commerce Cost : 1200 AED Per year
- Waste fees municipality: 1000 AED Per year
- Commercial services improvement fees: 400 AED Per year
- License fees & Cost : 550 AED Per year
- Administrative Services Fee & Cost : 50 AED One time Cost
- Chamber of commerce fees AED 1200 per year is for normal trading company. If it is an industrial company then this fees comes to AED 2200.
- Waste fees for municipality AED 1000 per year is for normal trading company. If it is an industrial company then this fees comes to AED 2000.
- For foreign trade name there is an extra fees of AED 2000 per year.
- For the formation of General trading company one-time fees of AED 15,000 is required.
- For Contracting License one time fees of AED 10,000 is required.
- For Real Estate Brokers Company fees for Economic Department of AED 5,000/- is required.
- 5 % of Amount premises rent to be paid to Government.
LLC Company in Dubai
Limited Liability Company (LLC) is the most common form business in UAE. A Limited Liability Company can be formed by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the businesses capital. A Limited Liability Company (L.L.C) set up in Dubai can be formed with 49% shareholding of expatriates whereas 51% shareholding has to be in favor of a local U.A.E resident. An Onshore Company is one that is incorporated within the jurisdiction limits of a country, with the aim of accomplishing business by fulfilling all of its legal formalities. In UAE, onshore companies require a UAE national to act as an agent or company shareholder. LLC set up in Dubai is the most popular type of business entity registered by the foreign investors in UAE.
You can hire company formation consultants in Dubai to form independent or branch/representative offices of registered foreign companies in any part of the Emirates with reasonable Dubai LLC set up costs. In certain situations, in order to abide by the UAE legalities, company formation consultants in Dubai can provide you with the best locally accessible resource to set up an LLC in Dubai. The Limited Liability Company allows the foreign citizens to own 49% of its shares while 51% should be brought up by a local sponsor or a partner.
Professional business consultants for LLC set up in Dubai provide a comprehensive range of business management services to individuals and companies. Adhere to the highest international standards of quality, and provisions of the existing regulations for your LLC set up in Dubai and the United Arab Emirates.
Benefits of LLC Company in Dubai
- Dubai LLC offers an unrivalled access to the wider UAE economy.
- No specific minimum capital needed.
- The investor has a choice to commence branches.
- The investors get investor visa under which they enjoy the investor’s status in the Emirates along with their family.
- Investors can manage the business without any day –to-day interference from the local partner.
- Easy to open corporate bank accounts along with easy availability of credit facilities.
LLC Company Formation Dubai
If your are an investor and wish to incorporate in Dubai, then you need to know about sponsorship for Dubai.
Every foreigner in the country must have a Sponsor. Every business must have a Sponsor or a Service Agent. If you want to visit Dubai, then you need sponsorship for Dubai. Sponsorship for Dubai and in the UAE is very important.
If you are in a free zone, the free zone is your sponsor.
A Sponsor or a Service Agent in Dubai is any UAE national, man or woman, or any UAE owned company who is willing to take on the responsibility of bringing you into the country – as an investor, or as an employee, or even if you are a Tourist. Some Professional categories only need to have a ‘Service Agent’.
A Sponsor normally is a 51%+ owner of the business on paper if it is a local LLC company. He does not invest any of his own funds, and you are obliged to put 51% of your capital in his name. In most cases he will not partake of the profits of the business, but will take either an annual fixed fee or a percentage of revenues.
Many investors do side agreements with the UAE nationals offering sponsorship for Dubai, where the Sponsor agrees that the 51% is not his, but this point is not necessarily upheld by the Dubai Courts.
A Service Agent is generally only attached to Professional category companies where the professionals are entitled to own 100% of their companies e.g. Doctors, accountants, carpenters.
The official language of the UAE is Arabic yet in the majority of the trade and commerce activities of Dubai the English language is applied. But many government documents are in Arabic so they need to be typed by a typist who can do so in Arabic. The Sponsor or the Service Agent, most of the times, signs these documents, and if you trust him, interprets them for you.
Sponsorship for Dubai is how the Government of Dubai, UAE, persuades the local population to welcome these large numbers of foreigners, who outnumber them 1:10, by allowing the former to make money from every foreign investor who comes into Dubai.
The Government itself makes billions of Dollars as visa and company registration fees. The banks keep billions of Dollars in security deposits for the employment visas that the companies pay before the visas are issued. The typical annual Sponsorship fee can run from US$ 4,200 per year for a small shop to several millions US Dollars for a large multinational company. In the years up to 2000, the government was eager to have small and medium size businesses from wherever they could get investors.
Then, with real estate appearing as a lucrative opportunity, the focus shifted to bigger, branded, UAE businesses and the market changed forever – especially for the small and medium business owners, as did the sponsorship fees
It is much easier now to obtain a license to do business with the several Free Zones springing all across the UAE, but the visa costs have gone up 8 times in the last 12 years as have the Trade License annual fees. Free Zones – at last count 28, act as UAE business centers and make life easier for the foreign investor and provide excellent world class facilities.
In addition, foreigners can own 100% of their companies in the Free Zones as opposed to only 49% when they incorporate a UAE business in the country. But there is still a Sponsor – The Free Zone Authority where you are incorporating. Many multinational companies have set up shop in the free zones. UAE business is simple after the first year of getting your ‘Sponsorship Agreement’, office space, your ‘Trade License’, ‘Labor and Immigration computer cards’, your own ‘Investor visa’ stamped in your passport, your ‘Driving license’ and your bank account.
Dubai Company Formation Online Resources
Free Zones in the UAE – UAE Interact
Statistical surveys in the UAE – Dubai Statistics Center
Why invest in Dubai – Dubai Health Authority
Dubai for business – Dubai International Finance Centre
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