One of the most cosmopolitan and wealthy cities in the Middle East, Dubai has elements of both Eastern and Western cultures. Many business owners view this location as the most desirable and cost-effective place in the world for doing business since it gives start-ups a decent revenue percentage. The most popular type of business in the UAE is a number of Limited Liability Companies, which is exactly why they are. Let’s examine these businesses in detail, along with the price of forming an LLC in Dubai, the definition of an LLC there, how to set up an LLC in Dubai, how to obtain an LLC license there, and other topics.
What is an LLC Company in Dubai?
A company form that provides the same level of personal responsibility protection as a corporation is a limited liability company, or LLC Company, in Dubai. Only the company or the firm’s shareholder capital is subject to the company’s liabilities. According to the new amendment of law no. 2 of 2015, it can be founded by a minimum of one shareholder and a maximum of 100 shareholders in UAE commercial entities. Their financial obligations are restricted to their capital investment shares. A foreign national, any individual person, or a corporate entity may now, as of June 2021, become a 100% owner of an LLC company without designating a UAE national as the company’s 51% shareholder in such businesses.
The Department of Economic Development (DED) government issues an LLC license in Dubai and is responsible for regulating the types of all activities. It also provides LLC licenses. These businesses don’t require to have a certain amount of share capital. These corporations offer a simple corporate structure that will secure your personal belongings. They give liability protection, have a flexible management structure, and can have a few tax benefits.
Why Set Up An LLC Company In Dubai?
A Dubai LLC license comes with a number of benefits for business owners. The advantages increase when such businesses are established in Dubai. Due to the following benefits, many shrewd businesspeople choose LLC company creation in Dubai:
1. The benefit of limited liability is offered to the capital stock shares by a limited liability company.
2. With the exception of banking, insurance, and investment, LLCs can engage in any type of business activity.
3. LLCs are permitted to conduct business in the UAE, including the Freezones.
4. There are no limitations on where the business can purchase or lease office space.
5. There are no limits on LLCs, thus they can apply for a variety of visas.
6. The DED has officially exempted LLCs from the requirement for paid-up capital.
7. Opening a bank account is easier
8. You can apply for maximum visas under the company with a small or virtual office.
9. The company gained a reputation internationally.
Requirements for LLC Company Formation in Dubai
One of the requirements for forming an LLC firm in Dubai is documentation. The documents needed to create an LLC are listed below. As the standards greatly vary based on the type of business, we have only included the common ones.
- Clear passport copies for all shareholders and managers
- Copy of the UAE residence visa or visit visa (if required)
- NOC from current UAE residence visa sponsor
- Confirm Trade Name
- The owner of the business must additionally provide the following papers if a corporate entity wishes to become a shareholder.
- Certificate of incorporation
- MOA/AOA of the company
- Board of resolution of the company
- Appointment of manager in the proposed company
- All the above documents must be notarized in the country of origin and get attested by the UAE Embassy of that country.
How Does the Formation of an LLC in Dubai Operate?
The benefits of establishing an LLC in Dubai for business owners are numerous. The procedure takes time, though. It’s a long and involved process that requires investors to communicate with numerous departments and prepare numerous documents.
Here are the crucial actions that must be taken to complete the entire LLC Company formation process in Dubai.
Step No. 1: Select a Name
The LLC’s name and the kinds of operations it will engage in must be chosen by the investors.
Step No. 2: Choose a Location
After choosing the trade name, choosing the location is another prerequisite. The location should be chosen to suit the sort of business. The company’s operations must be managed through a physical or virtual office/warehouse.
Step No. 3: Choose a Business Activity
Selecting the appropriate activity is crucial for the registration of any company in Dubai. Get help choosing the correct business activity for the planned firm by contacting WeServe Business Consultancy
Step No. 4: Submit All Documents to DED
After selecting a name, activity, and venue, submit the necessary paperwork to DED so that it can provide the requested approval.
Step No. 5: Process of Approval for Activities
If you want to create an LLC business that engages in particular activities, you will need the consent of other pertinent authorities.
Step No. 6: Obtain Licenses
You can receive a Memorandum of Association, Trade license, Tenancy agreement, Share certificates, Labor cards, Visas, Certificate of Incorporation, and other legal documents from the authorities once they have approved the business activity.
How to Start an LLC Company in Dubai?
In Dubai, forming a company is a difficult process. The following procedures are necessary for its formation:
- The LLC company must be registered with the Department of Economic Development in Dubai.
- Combining and validating the business’s Articles of Association and Memorandum
- Making sure that the DED department receives the necessary paperwork and business license application forms.
- Adding an LLC to the Dubai Commercial Register.
- After the LLC company is formed, register the employees with the appropriate agencies.
What Are the Different Types of LLC Licenses in Dubai?
Business owners need to be aware that forming an LLC in Dubai requires a license, which must be obtained. A corporate document that attests to a company’s legal standing is an LLC license. Additionally, these licenses preserve, arrange, and classify the firm’s legal matters. A business or trade license is required if you want to conduct legal business. Your company’s operations will be compliant with the Commercial Firms Act of the United Arab Emirates thanks to this certification. The types of licenses that the LLC in Dubai may obtain are as follows.
Commercial License
Companies that engage in various trading activities including goods, services, and other commodities are given these kinds of licenses. Car rental, logistics, and real estate brokerage are some of the businesses covered by the commercial license category.
Professional License
Such permits allow company owners to operate in a particular field. Individuals can create a business entity in which they are qualified and have expertise by obtaining this business license. Repair services, computer graphic design services, medical services, printing and publishing, beauty salons, artisanship, consultation services, carpentry, security services, and many other types of work frequently call for a professional license.
Industrial License
For the establishment of manufacturing or industrial activity in the UAE, certain types of permits are necessary. With the use of this license, business owners can assemble and process locally produced or imported goods utilizing raw materials. This industrial license is necessary for business owners who want to set up an LLC in Dubai for the production of textiles, food, petroleum products, paper, metals, machinery, and engines.
Tourism License
As the name suggests, this tourism trade license is required for companies that provide tourism services like tourist camps, hotel rentals, restaurants, cruise boat rentals, guest homes, and travel agencies.
What is the Cost of an LLC Company Registration in Dubai?
The price of an LLC license in Dubai ranges from AED 15,000 to AED 30,000, and it may change based on the type of business you operate and the types of activities you intend to engage in.
It costs a lot to create an LLC, both in Dubai and elsewhere in the world. There are other procedures that cost money, such as registering a corporation, applying for an investor or employment visa, opening a corporate account, and paying additional taxes and government fees.
Investor’s Visa Cost for a Dubai LLC Company
The investor visa costs for a Dubai LLC vary between AED 4500 to AED 5500.
The employment visa cost for an LLC Company in Dubai
The cost to issue an employee visa ranges from AED 5000 to AED 7000, depending on the type of company and the employee’s classification.
How can WeServe Business Consultant assist you in forming an LLC company?
Our expertise in forming LLC companies combined with our extensive understanding of the sector and global network allows us to assist our clients in starting their businesses quickly and easily. In order to obtain an LLC license in Dubai and provide you with knowledgeable guidance, Team WeServe approaches the process with honesty.
