LLC Company formation in UAE
Business Setup
SKM International Chartered Accountants is one of the top professional firm with regional focus and having global representation. We cover all aspects of doing business in the UAE and the GCC countries. While based in the UAE, we offer comprehensive services for doing business in the Middle East including all the Free Trade Zones, including offshore company formation.
Legal Structures for Setting up Business in Dubai
The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organizations, which can be established in Dubai. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures.
LLCs and Free Zone company formation are more commonly chosen by the foreign investors.
Type of companies &/or investments are usually made through
* LLC Company formation
- Branches and representative offices of foreign companies
100% foreign owned professional firms
Free Trade Zone
* Limited Liability Company
UAE allows LLCs to flexible, differential profit sharing arrangements. This permits the foreign investor a great edge as the 51% local equity rule is in most cases.
Limited Liability Company can be formed by a minimum of two and a maximum of fifty shareholders whose liability is limited to their shares in the businesses capital. Most companies with foreign partners have opted for the Limited Liability Company, due to the fact that this is the only option that'll give maximum legal ownership i.e. 49% to the expatriates for a local business. As it is mandatory to have a UAE national as a partner in the LLC prospective investor has the option to choose the one UAE national (sponsor) as a partner in the company.
The span of time to form a company will be approximately 1-2 weeks from the date of receipt of all documents.
* The licensing Authorities
- Dubai : Department of Economic Development.
- Shariah: Economic Development Department.
- Other Emirates: Municipality/ Chamber of Commerce.
* Benefits of LLC Company
- While foreign equity in the company does not exceed 49%, profit and losses can be shared at a ratio different the share capital.
- The most popular method of establishing a commercial company in UAE.
- UAE LLC offers access to the wider UAE economy.
- No specific minimum capital requirements.
- The investor becomes the partner in the company.
- The investor gets the investor visa under which he/her enjoys an investor’s status in the Emirates along with his/her family.
- The investor has the option to commence branches.
- The investor can manage the business without the day-to-day interference the local partner.
- The assets and capital created will be in the name of the company and not in the name of the local national partner.
- Few restrictions on the activities of an UAE LLC.
- Easy to open global corporate bank accounts.
