Dubai, with its thriving economy, strategic location, and business-friendly environment, has become a magnet for companies who want to start operating in the Middle East. Among the various business structures available, the Limited Liability Company (LLC) is a popular choice for those looking to set up a business in Dubai.
In this guide, we break down the perks of an LLC company set up, before providing a comprehensive overview of the steps involved in establishing an LLC company in this dynamic and prosperous city.
The perks of LLC company set up
Dubai's strategic location makes it an ideal hub for businesses looking to expand into new markets. With world-class infrastructure, transportation systems, and business-friendly policies, many companies opt to move their operations to the city every year.
The city's central location between Europe and Asia makes it a crucial link between these two continents, offering a prime location for companies looking to establish a presence in both regions.
LLC companies benefit from a flexible business structure that combines elements of both partnerships and corporations. In Dubai, an LLC can be formed with a minimum of two and a maximum of 50 shareholders. Each shareholder's liability is limited to their share in the company's capital, providing a level of protection for personal assets.
One of the significant advantages of LLC company formation in Dubai is that it allows 100% foreign ownership of the company. This means that entrepreneurs from all over the world can set up their business in Dubai without the need for a local partner. This policy has been put in place to attract foreign investment and promote economic growth, contributing to the country’s advancement.
LLC companies in Dubai can also enjoy tax exemptions on profits and capital gains, making it an attractive option for entrepreneurs looking to maximise their earnings. The UAE does not have a federal income tax system, and Dubai has implemented a zero-tax policy on personal and corporate income, making it a tax-efficient jurisdiction.
Our guide to LLC company set up in Dubai
Before initiating the LLC registration process, it is crucial to determine the business activities the company will engage in. Dubai has specific regulations regarding the type of activities allowed, and obtaining the necessary licences depends on these classifications. Our PRO agents can assist you in the process, understanding what your exact needs and requirements are before advising on the best approach.
Once you have a clear understanding of the type of business activities you will be conducting, you can move on with the process of a LLC company set up in Dubai.
Capital requirements
LLCs in Dubai are required to have a minimum share capital, which varies depending on the business activity and location. It is essential to define the shareholding structure, specifying the percentage of ownership for each shareholder. Drafting a clear Memorandum of Association (MOA) that outlines the company's objectives, capital, and shareholding structure is a mandatory part of the registration process.
Sponsors
Until recently, a local sponsor was mandatory for LLC company formation in Dubai, UAE, however the rules have recently changed. Foreign investors are now offered 100% ownership on UAE mainland if they meet a certain criteria. For those that do, a local sponsor is no longer required.
Legal approvals
Several government approvals are required before finalising the LLC registration. This includes approval from regulatory bodies such as the Department of Economic Development (DED), the Ministry of Economy, and any industry-specific authorities.
Office space
LLCs are required to have a physical office space to operate in Dubai. A lease agreement for the office space is a prerequisite for completing the registration process.
Once all approvals are obtained, the authorities will review the documents to ensure compliance with regulations before issuing the commercial licence, allowing the LLC to commence its operations.
How can Time & Motion help with your LLC company set up in Dubai?
Establishing an LLC in Dubai offers entrepreneurs the opportunity to tap into a thriving market with a strategic global location. At Time & Motion, we make the process of setting up and registering a Limited Liability Company in UAE fast and efficient for entrepreneurs, whether they are situated in UAE or overseas.
If you are thinking of setting up a Limited Liability Company in Dubai, then you can save yourself time and efforts by contacting one of our agents. Among other things, they will be able to tell you more about the criteria - and the exact course of action you need to take.
Get in touch now and a friendly member of our team will be happy to assist you.