Dubai is a city with a cosmopolitan touch and combines the best of the Middle East and the West. And in the last two decades, it has emerged as one of the most favoured business hubs in the world. As a result, you will find many investors seeking to learn about LLC Company Formation in Dubai.
The Department of Economic Development (DED) is the regulatory authority for an LLC company formation in Dubai. Here, we will discuss the process of starting a Limited Liability Company (LLC) for those who plan to start a business in Dubai.
Steps to LLC Business Setup in Dubai
- Decide on a Trade Name
Find a suitable name that is unique and relevant for your business.
- Choose a Location
Select a location (physical/virtual office or warehouse) that suits your business needs.
- Get a Local Sponsor
Find a local sponsor who will own 51% of your company shares, and the remaining 49% will be yours.
- Get Require Documents
Collect all the necessary documents and submit them to the DED along with your application.
- Pay Fees and Obtain Your Documents
Obtain trade licence, share certificates, tenancy agreement, certificate of incorporation, Memorandum of Association (MoA), visas, labour cards, and other legal documents (that you will need to run your business smoothly) from concerned departments and authorities.
Documents Required for LLC Formation
- Duly filled registration application form
- Passport copies of all shareholders and managers of the company
- Passport copy of the local sponsor
- NOC from sponsor (if manager or partner has residence visa in UAE)
- Memorandum of Association (duly attested from a public notary)
- Registration of trade name and initial approval from DED
- Bank reference letter of each shareholder
- Location plan and tenancy agreement attested by Dubai Municipality’s Planning Department and Civil Defence Department
Ensure you have got all your documents attested and notarised from your home country and the UAE consulate. But, the notarization process takes a little time. But a business setup company can try to do it soon.
Benefits of a Limited Liability Company (LLC) in Dubai
Setting up a limited liability company in Dubai has several advantages:
- Access to the broader UAE economy.
- No specific minimum capital is needed.
- No day to day interference from the local partner in managing the business.
- Easy to open corporate bank accounts.
- Easy availability of credit facilities.
- Dubai LLCs are internationally recognised.
- The UAE has a double taxation avoidance treaty with many countries. So, your profits and capital gains are not taxed twice.
- 100% foreign ownership available for selected business activities.
- An unlimited amount of money can be transferred in or out of the country.
- No restrictions on the type of business an LLC can undertake.
- The Dubai government offers a wide range of support services.
The Company Setup Cost in Dubai
The costs associated with a company formation in Dubai vary depending on the type of company you want to form. For an LLC, the cost includes registration fees, various business activities, location, size of the office and other government charges. For branches or representative offices, the cost may increase. And, a professional business setup consultant can give an idea about accurate cost. Moreover, they can also ensure that you are doing everything correctly and avoid repeat work or mistakes.
Finding Business Premises in Dubai
After your LLC company formation paperwork is complete, you will need to start finding suitable office premises. Dubai offers a wide range of office and commercial spaces to meet your business within your budget. In addition, many business setup consultants also provide offices for rent services to make the process convenient for investors. With their help, you can find an office with specific requirements, and they can help you negotiate the best deal. Moreover, if you have a tight budget, several coworking spaces are available in Dubai to cater to your requirements.
