Do you wish to venture your company over the land of Dubai? Well, the establishment of business in Dubai mainly goes ahead in three ways – LLC, Free zone and Offshore.
However, here we will be focusing on LLC in particular and all things essential about it. It is a popular type of business structure that several entrepreneurs adopt. The involvement of lowered risks and potential benefits makes this business structure popular.
Now before you jump forward for LLC company formation in Dubai , it is important for you to learn about its essentials. So without further ado let’s begin with it shall we?
What is LLC exactly?
Limited Liability Company (LLC) is basically a category of business structure that provides limited liability security and opening taxation. For corporations, the LLC is present as a separate legal entity from the owners.
Hence, owners cannot really be held responsible for the said business’s liabilities and debts personally. This is the prime reason why most of the entrepreneurs prefer opting for this business structure while establishing their company in the foreign lands.
LLC merges several characteristics of partnership and corporation structures. However, it cannot be deemed as a partnership or corporation. Thus, comes in the apt terminology for it as ‘Limited Liability Company’.
The owners are known as ‘members’ rather than shareholders or partners.
Why shall you form a LLC in Dubai?
If the priority for your company lies in making sale within the zone then it would be a smart choice for you to opt for LLC company structure in Dubai. With the formation of mainland LLC company you will be able to trade across UAE and in extended states of Gulf Cooperation Council (GCC).
The company must have the presence of a single local sponsor that would hold at least 51% of the company shares. An important criteria that needs to be fulfilled by all LLC companies as per the UAE Commercial Companies Law (CCL).
Benefits of forming LLC in Dubai
The foreign investors get to avail following benefits upon holding company registration in Dubai for LLC –
Ø The owner is free to conduct any business activity except insurance, investment and banking.
Ø Requirement for a fixed minimum capital is non-existent for establishing LLC Company in Dubai.
Ø There is no restriction in obtaining the number of visas.
Ø The owner gets the privilege of having a minimum number of two and maximum fifty shareholders for the company.
Ø The owner gets the advantage of the entire UAE market once they establish an LLC in Dubai.
Ø Assets earned are entitled as company property and do not actually fall in the ownership of the local partner.
Ø The investor is the direct partner and possesses the maximum amount of legal rights and security.
Ø Restriction on real estate ownership is non-existent.
Ø the LLC company gets the perk of tax exemptions from the Government itself and the process is as well facilitated.
Requirement of Essential Documents for LLC Registration
Now that you are well aware of the advantages offered by the formation of LLC, let’s have a look at the essential documents required for registering.
Ø The original registration application form duly filled and signed.
Ø All the company Managers and Shareholders passport copies.
Ø The local sponsor’s passport copy.
Ø No Objection Certificate or NOC from the local sponsor (if partner or manager has acquired residence visa in UAE).
Ø A duly attested Memorandum of Association from the public notary.
Ø Initial approval and registration of trade name from DED (Department of Economic Development).
Ø Company’s location plan and contract of tenancy duly attested by the Civil Defense Department and Dubai Municipality’s Planning Department.
Ø Copies of bank reference letters from all Shareholders.
All of the documents listed above must be notarized and attested from the applicant’s origin country along with the UAE’s consulate.
Since the process of notarization takes an ample amount of time. The applicants are recommended to initiate the process as soon as the decision for the company set up in Dubai is finalized.
The completion of the entire process generally takes up to a few weeks’ time right after the submission of entire documents.
If you are in the lookout for trading and aiming for sales in Dubai then going in for LLC company establishment is the right choice. As we see from the above discussion that the level of risk is impressively low for LLC business structure.
We recommend you to conduct a feasibility study in Dubai before you proceed for the LLC registration. Also, for registering your company successfully for LLC you can seek help from reputed private agencies.