A LLC Company Formation in Dubai is one of the most commonly adopted forms of business for establishments seeking to enter business away from a UAE’s Free Zone.
A LLC Company Formation is a firm where the shareholder’s liability is restricted only to the magnitude of their shareholding in the capital.
A minimum 51% of the total shares in an LLC must be held by an Emirati national or a firm wholly owned by UAE nationals. A few other exceptions and rules apply to certain industries that vary from Emirate to Emirate.
There are numerous benefits to LLC setup in Dubai:
GCC Solutions would appear as the corporate sponsor holding 51% of the shares as a beneficiary guaranteeing that our clients keep 100 percent control of the LLC’s operations. GCC Solutions’ Managing Partners, Mr. Omar Fikree and Mr. Ali Fikree are both qualified Civil Engineers and possess Masters Degrees (with honours) from the University of Bristol in Engineering. GCC Solutions can expedite the beneficial corporate sponsorship of firms seeking Professional Licenses in certain commercial activities. These business activities include Architecture, General Contracting, Interior Design, Engineering Consultancy and other professions that require the majority shareholding of the LLC to hold a professional qualification in Engineering as stipulated by the Municipality requirements i.e. Dubai Municipality.
UAE’s new Commercial Companies Law (CCL) was announced in July 2015 as Federal Law No. 2 (2015) on Commercial Companies. The CCL has replaced the old Federal Law No. 8 (1984) about Commercial Companies.
The New UAE CCL has brought in several new changes to the previous legislation.
Here are the new laws applied to LLCs:
A corporate entity or an individual can be the only shareholder of a Limited Liability Company. The previous law had a minimum requirement of two shareholders for LLC company formation in Dubai, UAE.
The Shareholders’ date of birth should be enlisted along with other details in the articles. The shareholders are also required to disclose their mobile numbers to the Department of Economic Development of Dubai. It was not a requirement in the former law for Limited Liability Companies.
LLCs will now have to adhere to the International Accounting Standards. The previous CCL had permitted to use any standard in the past.
Shareholders in Limited Liability Companies are allowed to pledge their shares. The commitments must be made by the establishment’s memorandum and articles of association, and be notarized.
It is now possible for Limited Liability Companies to assign more than five Managers / Directors. They should also modify the Articles according to the increase in governance positions.