The majority of the business man like to form their business in Dubai; which is in a local market. In Dubai there is plenty of scenarios for business setup. So, many business men are interested to set up their business in Dubai. If you are scheduling to form a company in Dubai; then you must select a best an appropriate composition for your business. At this time let me tell you one more thing; that is LLC company formation in Dubai is one of the best choice for company setup.
A local sponsor is required to setup an LLC company Dubai. That is he will perform as a co-owner of the business. But, expats has full control in terms of the income sharing; as well as accomplish on his business tasks. Also note that shams consultant provide full support for LLC company formation in Dubai. So, you only require providing us full information of your partners and about the nature of your business. And then, we will look out of rest of the set up procedure. We will provide you a trustworthy local partner for your LLC Company.
LLC Company formation in Dubai
An LLC company formation in Dubai needs minimum 2 and maximum 50 shareholders. For an LLC company setup Dubai you need at least one local partner. That is Local partner will hold at least 51% of share in the company. There for, an obverses partner will hold 49% of share in the company. Dubai LLC may continue all kind of business except; that is an insurance and an investment as well as banking.
Capital requirement for LLC Company setup Dubai
An LLC company formation Dubai do not wants any capital also no bank deposit. Thus, in Dubai an LLC can be form without a Bank Deposit. But in Abu Dhabi the requirement of capital rule is still exist. That is a 150,000 Dhs share of capital requires to establish an LLC Company. The GM of an LLC is accountable to run the bank account; which is for an LLC Company formation Dubai. LLC Company can have manager from 1 to 5. Thus, Manager can exercise all financial and administrative powers. A share holder in LLC Company may permit to transfer his share or part of it to another shareholder.
MOA for LLC Company setup Dubai
Memorandum of association must include the following:
- Trade name of the company,
- Head office,
- Duration, also its objectives,
- Nationalities of shareholders and places of residence details.
- Names of shareholders along with their addresses,
- Distribution of profits and losses as well.
- Adopted method of notification.
- Capital amount and also share of all shareholders.
- Company managers and a statement of capital paid in kind (if any).
Benefits of LLC Company formation in Dubai
- LLC offers access to the wide range of UAE market
- IT is the most general technique of setting up a company in Dubai.
- In LLC the investor become the partner in the company
- No restriction on staff visa; and allow rent an office in mainland too.
- The investor has the choice to start branch of his own company.
- The assets and capital will belong to company. And also, assets are not associated to a local Sponsor.
- There is no capital requirement for LLC Dubai.
- The investor will obtain the investor visa under which he or she can support his family.
- The investor can manage the company without the intervention of local partner
- Allow a wide range of activities.
- Allow to open global / local bank accounts and gain credit facilities.
Can a non-UAE national open LLC Dubai without a local partner or local services agent?
The answer is No, all LLC Dubai require a local partner. At this point let me tell you one more thing; that is a Local partner will hold 51% of share in a company assets. However, in the case of professional licenses a UAE national can either be a partner or a local service representative.
What kind of trading activities a Dubai LLC Company can conduct?
In principle, there is no limitation on LLC Dubai to carry out trading activity. However, LLC company setup Dubai is not allows to carry out ban activities; in the areas of banking and investment as well as insurance. Industrial activity requires a special licensing method. However, they can operate as a LLC Dubai and enjoy exemptions and subsidies in particular; as different to pure trading enterprises.
Are there legal possibilities for the controlling stake position of a local partner in a Dubai LLC company?
The MOA perform as constitution for LLC Dubai Company formation. It is leading the internal organization belongs to its partners. Moreover, MOA regulates the rights and duties of the partners usually. Thus, it creates right and farm duties between them and LLC Company respectively. The rights describe in MOA are directly enforceable on all partners. Therefore, a care full well written MOA will make stronger the position of partner from abroad. A company contract will fix the distribution of earnings and loss. Thus, Deviations of a ratio of up to 80:20 for the assistance of an obverses partner are permitted. It is not possible to keep out a partner entirely from the appropriation of the financial results.
However, a partner from foreign can take part of the profit in term of a salary. The partner from abroad can manage the entire business. Each partner will attend the general meeting of the company.
Is it possible to establish an LLC for professional activities?
No, LLC Company in Dubai can only perform trading and as well as an industrial activity. Professional activities are allows only to civil companies.
Does a foreign company require a “sponsor” for all types of LLC?
As a rule, a local person will work as a partner in Dubai LLC. However, a local sponsor will act; like an inactive partner of the company. Some time, we also called a sleeping colleague. As per U.A.E Law, an expat can only hold 49% share in LLC company formation Dubai. So, a local sponsor should hold at least of 51% of the company capital. In a representative office, a branch office in Dubai as well as in a professional license expat can hold 100% of share. But, it still requires a service mediator to represent them in Legal departments.
how to set up an llc company in Dubai?
To set up an LLC Companies in Dubai you require the following main steps.
- First of all decide the form of an LLC.
- Choose the nature of business works for an LLC Company in Dubai.
- Define all the business work. Because, a Dubai LLC can take no more than one activity; that is subject to a maximum of 10 activities.
- Choose your business legal form taking into concern the desire business activity.
- Define all necessities and also define all conditions need for an LLC company formation in Dubai.
- Choose the trade name for an LLC Dubai.
- Submit an application for an initial approval. Which you can submit application in the DED offices; or you can use the internet and online form to submit request too. You can also use document clearing service; or you can also use legal consultant’s office for submission of documents.
- Next stage is to register a trade name; that is after receiving an initial approval.
- Lease a business premises. We suggest visiting the Planning Dept of Dubai Municipality. So that, to verify that premises is appropriate for the business. You can also take the assist of business set up consultants before leasing premises.
- Prepare all the documents. For example, MOA and other approval, that is essential in all cases. Such as, to carry on media activities; an approval requires from Ministry of Information and as well as Culture. You will obtain documents through a mail. If you have paid the required fees directly through Internet.
- Submit an application to the Department to get a final license.
- Pay the require fees and collect your license.
Can a foreign company choose LLC formation in Dubai for their commercial activities?
The LLC formation in Dubai has 7 types of commercial entities; that is provide by the Company Law. Most of expat prefers LLC set up structure; which is because of, its flexible composition. However, LLC Dubai has restrictions to an activity; such as, trade as well as to an industrial works. A legal definition of “trade” is defined in a Civil Code. Trading does not include services and consultancy for instance, a medical services; An education services or An academic services as well as a skill profession. There are other types of company that can carry out such activities.