How to set up LLC company in Dubai 2022

LLC Company Formation in Dubai 2022

LLC Company Formation in Dubai: Limited Liability Companies are a major trend right now. They are one of the most common and preferred business structures in Dubai. It is important to understand what a limited liability company is and how you can set it up on your own.

A Limited Liability Company is the one where you need at least two shareholders to start with. The maximum number of shareholders it can have are fifty. Setting up an LLC in Dubai or UAE means you need to have at least one local resident as the shareholder of your business.

Setting up an LLC in a free zone permits 100% foreign ownership. Therefore, many foreign investors set up their Limited Liability Company in the free zones.

Many, however, do not possess clarity about this business structure. Entrepreneurs tend to face hardships in launching a company due to the lack of knowledge of the procedures and/or facilities and amenities. This causes disorder and distress for them. They face questions like, “Is it a lot of documentation?” or “How do I set this up smoothly?” etc.

With proper awareness and consultancy, you can launch your limited liability company. Below is a list of why you require consultancy services.

Why do individuals set up LLC Company Formation in Dubai 2022?

There are several reasons why a limited liability company is beneficial:

• The biggest aim of starting a business is to provide solutions while gaining maximum profit. LLCs are preferred by people for the minimum loss pay structure offered to the partners of such a company. Each member must pay the loss amount based on the number of shares owned by them.
• Another great benefit of this type of company formation is the zero percent restriction on the number of visas it offers.
• Allowance of conducting almost any activity by a limited liability company.
• There is less hassle in forming a limited liability company resulting in fewer documents, less paperwork, and easier execution of actions. This makes it simpler than any other business structure.
• A limited liability company can easily escape the ownership restrictions placed on owning any real estate.

LLC Company Formation in Dubai:

So how does one set up a limited liability company in Dubai?

Limited liability companies require basic documentation and clarity, as listed below:

• In any business, the first step is to come to a suitable name. Choosing a name makes it easier to register further details.
• Next, is to choose the location. Dubai has a lot of suitable locations for several types of businesses. Choose the best for you.
• Review the agreement between all the partners of the company and local sponsor.
• The fourth step is documentation. Collecting all the necessary details and then submitting it to the DED - Department of Economic Development of Dubai falls under this step.
• Every business deal has its own specific activities and hence requires licenses and permissions related to it. The fifth step involves acquiring these with the help of the respective departments.
• General documents like trading license, Memorandum of Association, agreement of tenancy, visas and more also need to be considered.

Documents required for setting up an LLC:

There are some major documents that need to be submitted to the Department of Economic Development of Dubai. They are listed below:

• Registration form to apply for LLC formation.
• Copy of passport of each partner, sponsor, manager, and the company shareholder.
• MOA- Memorandum of Association.
• No Objection Certificate by the sponsor is needed.
• Early approval by the DED of Dubai.
• Registration form for trade name.
• Office location and contracted tenancy which must be DMPD- Dubai Municipality’s Planning Department attested.
• Bank reference holder of every shareholder of the company.

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LLC Company Formation in Dubai : FAQs

1. What is the minimum number of shareholders in a limited liability company?

In a limited liability company, you can begin with a minimum of 2 shareholders.

2. What are the types of licenses under a limited liability company?

There are several licenses in an LLC; they are:
Commercial license: this is a license related to trade and commerce.
Professional license: this is a license related to all the professional aids or services.
Industrial license: this license falls under the category of manufacturing and factory related activities.

3.What is the amount of equity percentage allotted for the local sponsor?

The amount of equity percentage allotted to a local sponsor is 51%.

4. What are the expenses for LLC setup?

Expenses of any company formation depend on its individuality. The location you choose, the business activities involved in the company, requirements of visa etc. affects the cost of a company on various levels.

5. Are there any benefits related to taxes for LLC?

Any LLC gets a certificate regarding tax residence which allows it to do trade in any part of UAE.

Business Setup HQ focuses on providing the best consultation with all the details regarding any business setup in Dubai. On the very first call itself, you will gain clarity to launch your business smoothly.