LLC Company Formation in Dubai | Limited Liability Company in Dubai

Limited Liability Company in Dubai

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What is Limited Liability Company in Dubai?

Dubai, owing to its business-friendly policies and fast-growing economy is the top choice of entrepreneurs to establish a business. While there are many business structures that are available to choose from, the Limited Liability Company (LLC) has emerged as the popular choice among businessmen.

Advantages of LLC Company Formation in Dubai

What sets this structure apart from the rest others is that an LLC is a legal business entity where the liability of the shareholders is only limited to their investment in the company. In case of any business failure, debts or liabilities, they are not entitled to pay from their personal assets.

Apart from the protection of personal assets, in this business structure, entrepreneurs can choose from a range of business activities. The company can have one or more managers, which makes it flexible to conduct business operations. An LLC company in Dubai can also operate in the UAE without any restrictions. So if you want to capitalize on the growing market in UAE, this business structure will be the right choice.

LLCs in Dubai are also exempted from many taxes with respect to import and export duties. Also there is no personal income tax and minimal corporate tax. Another significant advantage is you can have 100% ownership of the business as against the earlier law which required the

The Process for the LLC Company Formation in Dubai

Determine the business activity that you would like to conduct in Dubai.

There is a list of business activities that are permitted to conduct in Dubai. You can check the list from the Department of Economic Development (DED) and select the one that you want to go for.

Choose the appropriate company name

Choose a unique company that aligns with your business activity. Also ensure that it does not resemble any existing company names of trademarks. There are also some regulations to adhere to when naming a company, like it should not have any inappropriate words, or denote any references to religious entities.

Create an MOM (Memorandum of Association)

You will need to draft an MOM that outlines the distribution of shares, rights and responsibilities of different stakeholders and the entire company’s operating structure. This is one of the crucial documents that you will need to submit to the DED.

Obtain the Initial Approval from DED

Submit the basic documents such as passport copies of the shareholders and company’s description (including the company name, structure) along with the application form to the DED to obtain the initial approval.

Lease an Office Space

Once you obtain the initial approval, the next step would be to get an office on lease. Leasing an office is mandatory for LLC company formation in Dubai. The tenancy contract which is also called as the Ejari has to be submitted along with your final application.

Obtain Additional Approvals

You may need to obtain additional documents from other government departments and regulatory bodies, depending on the nature of your business activity. For instance, healthcare, food services and education related activities require specific licenses and approvals.

Submit Final Documents

After obtaining the necessary approvals, submit your final documents to the DED. The documents should typically include:

Initial approval receipt
MOA
Trade name reservation certificate
Lease agreement (Ejari)
Additional approvals, if required
Required fees
Receive the Business License

Post scrutinizing your documents, DED will issue you the business license, which once the DED verifies and approves your documents, you will receive your business license. This license authorizes you to start operating your LLC in Dubai. It is essential to keep the license updated and renew it annually to ensure continued legal operation.

Set the solid foundation for your Limited Liability Company in Dubai

Whether you are a local entrepreneur or an international investor, with the right company formation consultancy, your business can become a thriving venture. By entrusting your company formation requirements to us at Corpin Consultants, you can be assured that your company formation is compliant and seamless. Get started on the right note by getting on a free consultation with us right away!