25 Feb How to start a limited liability company in Dubai?
Limited Liability Company in Dubai provides Indian businesses with flexibility and protection. Moreover, Limited Liability Company formation in Dubai is hassle-free and allows Indian entrepreneurs to have 100% ownership. In fact, over 12,000 LLCs have been granted instant licenses through the Instant Licenses initiative in Dubai.
So, if you want to start an LLC in Dubai, read on. This blog will guide you through the process, cost, and paperwork needed for a Limited Liability Company formation in Dubai.
What is LLC in UAE?
The Limited Liability Company is the most common business structure on the UAE mainland. The DED is the government agency in charge of classifying and regulating the kinds of economic activity that may be engaged in. It is also authorized to grant all licenses for LLCs.
In contrast to Free Zone companies, LLCs are not limited to where they can conduct business in the UAE or the GCC. They are also not constrained in terms of real estate ownership or the number of visas they can apply for. There are no restrictions on the minimum share capital.
What Are the Benefits of Starting a Limited Liability Company in Dubai?
Here are some of the benefits of Limited Liability Company formation in Dubai:
- The norms for LLC Company Formation in Dubai allow one-person LLC establishments and having a maximum of 50 shareholders in the company.
- Limited Liability Companies in the UAE can choose from a wider pool of business activities.
- With all processes digitized, forming a company in Dubai is easy as it involves minor paperwork. Furthermore, the country has better and simpler rules for businesses and favorable property rights, thus easing business activities.
- The UAE’s revised Commercial Companies Law allows many categories of businesses 100% ownership by foreign entrepreneurs.
- Under the Instant Licenses initiative, your LLC can get a license more quickly.
- There are no minimum share capital requirements for setting up LLC company Dubai, but DED makes the final call on whether the capital pledged by the shareholders is adequate for the projects they plan.
- There are fewer restrictions on business activities in an LLC Company set up in Dubai.
- Your LLC company can legally trade independently within the UAE without interference from the non-active sponsor.
- Entrepreneurs can acquire any number of visas without any limitations.
- Your LLC company will exist as its own legal entity in the UAE, safeguarding members from being held personally responsible for the company’s operations and obligations.
What Documents Do You Require to Start a Limited Liability Company in Dubai?
The UAE seeks to have reliable investors contributing to its economy. Thus, documentation is an essential step to be followed for LLC company formation in UAE. Here are a few documents needed for Limited Liability Company formation in Dubai:
- Copies of passports and visas
- Two passport-size photographs
- Entry visa and stamp pages
As your LLC can choose from a wide range of activities, you may need a few more documents depending on your desired line of work. Our specialists can help you arrange all the required paperwork.
How to Setup a Limited Liability Company in Dubai?
To open an LLC Company in Dubai, you must plan, make critical business decisions, and wrap up several legal processes.
Below is a detailed step-by-step guide to know how to form an LLC in Dubai:
1. Select a Business Activity
The UAE government allows an LLC to choose from over 2000 business activities. So, you’re more likely to find your desired business activity on the list.
To decide on an activity, research your market. If there is a chance to develop your ideas into a profitable business, market research will reveal it. Using this method, learn more about potential clients and rival companies in your industry. Additionally, you might find a competitive advantage for your company, which can later become your brand’s USP.
2. Register the Company Name
Once you’ve selected a business activity, the next step is the LLC company registration in Dubai. So, name your company and get it registered with the relevant authorities.
To name your company, you can jot down some names of your choice, considering your products, services, future goals, niche, business values, USP, etc. Then, shortlist unique and decent names your customers can easily remember. Having more than one option for naming your company is a good idea as company names are subject to availability.
Note: Entrepreneurs must follow the UAE government’s company naming guidelines. Our consultants can help you with naming, ensuring your company name is legal.
3. Find a Business Location
Your location may affect your legal obligations and income when starting a physical or an online store.
Select your business location based on your budget, business activity, space needed, workforce size, infrastructural and technological requirements, accessibility, proximity to ports and transportation services, and so on. Moreover, if you need physical office space, you’ll need to enter into a lease or rent contract. Company formation experts can help you with the legalities of the contract.
4. Create and Submit MOA.
Make a Memorandum of Association (MOA) for your company. Describe the range of business activities your company engages in and the ownership of its shares. Include information regarding your company’s authority and rights as well. In addition, define your company’s relationship with its shareholders and founding goals. Your LLC must nominate at most five managers.
Note: Your Limited Liability Company must strictly follow the terms outlined in the MOA. Otherwise, it will be regarded as a breach of agreement when or if it happens.
Then, submit your MOA with the lease/rent contract to the concerned authorities.
5. Apply for a License
Maintaining legal compliance will help your company run effectively. The UAE government offers many license types, such as commercial, industrial, and professional. Moreover, your LLC can also get an instant license in the legal form of a Limited Liability Company
Moreover, certain activities may need additional licenses, approvals, and permissions. So, depending on your chosen business activity, select a license and pay the fee.
6. Obtain the License
After document verification in the above steps, you can acquire your trade license. A licensed company is lawfully a part of the UAE’s business ecosystem. Moreover, you can legally be a part of government initiatives and leverage them.
Before you launch your LLC, you and your partner may need visas, labor cards, and Emirate ID for your employees and family. Moreover, you can avail an investor’s visa and get investor status in the UAE with your family. Our professionals can help you apply for them.
7. Launch Your Limited Liability Company
Once you’ve acquired the mandatory licenses and approvals, your company is officially open. Now, concentrate on running and expanding your business. You can start hiring a workforce, buying and selling commodities, etc.
What Is the Cost of LLC company formation in Dubai?
Your Dubai LLC formation cost depends entirely upon your specific business and industry, including factors like Dubai LLC company registration cost, business location, number of visas you’ve acquired, additional approvals, and so on. It makes the final expense of Limited Liability Company formation in Dubai highly variable. So, as an estimate, starting a Limited Liability Company with an investor visa in Dubai starts from AED 25,500.
Going meticulously through your business activities and requirements can determine an accurate number. Thus, our experts provide you with the exact LLC license cost in Dubai.
LLC company formation in Dubai follows a simple step:
- Determine the type of legal entity
- Choose a trading name
- Apply for an LLC license
- Choose an office space
- Get pre-approvals, register your business, and get your LLC license
Start Your Limited Liability Company with Shuraa
Shuraa India branch professionals can help you sail through the complete process of setting up your Limited Liability Company in Dubai. You can trust our expertise with company documentation, LLC registration Dubai, adequate licenses and approvals, and even your specific business requirements. We can tweak our business packages as per your need for an LLC company setup in Dubai. Get in touch with us right away!