LLC Company Formation in Dubai – Setting up a company anywhere in the world can be daunting, and the UAE is no different. While the business landscape here in the Emirates is certainly accommodating, the various types of companies that may be set up here can seem a little confusing, particularly for first time entrepreneurs. It is the most common type of business in the UAE with an independent legal entity owned by multiple shareholders.
If that sounds like you, here’s everything you need to know about LLC company formation in Dubai and the UAE.
- Quick and easy setup: One of the major reasons why LLCs remain the most popular type of business setup out here is the incredible ease of LLC company formation in Dubai and the UAE. New initiatives have made the setup process so easy that, providing you meet the entry criteria, you could be registered with the Dubai Department of Economic Development (DED) within just 90 minutes, without having to commit to a lease agreement.
- Affordable company formation: The cost of forming an LLC is comparable to setting up in a free zone. The starting price for license applications is around AED 17,000 and, depending on the exact nature of your business, costs are unlikely to rise above 100,000.
- The chance to apply for multiple visas: The beauty is that it allows entrepreneurs to apply for unlimited visas. The general rule of thumb is 100 sq. ft. of office or warehouse space per visa. Having said that, in some cases, this may be negotiable with the DED.
- Set up anywhere: In Dubai, LLCs are required to take on office space. As an LLC business in Dubai,you are able to take on office or warehouse space anywhere throughout the UAE unlike other methods of company formation.
- Option to trade with the larger UAE market: Perhaps the number one reason why LLCs are the most popular company type in the UAE is that they allow you to do business with the whole of UAE market.
- Carry out a wide range of business activities: Unlike some free zones, LLCs have no restrictions on the type of business activities they can carry out. Companies are permitted to trade in any of the thousands of activities listed by the DED – across industries as diverse as agriculture, manufacturing, construction, hospitality, and finance.
- No requirement for paid upfront share capital: LLC company formation in Dubai and the UAE is incredibly affordable. As well as minimal application costs, there is also no requirement to put forward paid upfront share capital.
- Open branch offices: If you want to open your company in LLC your business will expand and grow more rapidly. You can even open branches of your company all over UAE.
- Set up company with multiple shareholders: At least two shareholders in any LLC and while there is not an official upper limit, the generally accepted shareholder cap is 50 – these can be either individuals or corporate entities.
A local sponsor is required by any foreign investor wishing to the business set up in Dubai mainland. Local sponsors own 51% of the business with the other 49% owned by the investor (or investors). However, profits are not split down these lines and full control almost always remains with the foreign investors.