LLC company formation in Dubai is the best business idea, thanks to the economy and strategic location of the country. In addition, it has a commercial structure, which is very popular among entrepreneurs and investors. Likewise, for this and many more reasons, you should think about starting this type of business in Dubai.
In this article, you will learn from the initial steps to the final formation of this type of company. Thus, continue reading and you will be able to know the Dubai LLC company registration cost.
Benefits of Setting up an LLC in Dubai
The benefits of LLC company formation in Dubai combine the protection of limited liability with the simplicity of a partnership. Likewise, it is a very flexible structure that companies usually use for different commercial activities. Below are the benefits of this type of commercial structure:
- The regulations for forming LLC companies are permissible regarding the establishment of the same. Similarly, it can be started individually and with a maximum of 50 shareholders.
- With an LLC you can choose the business activity from a wide range of activities.
- Forming this type of company is simple because all processes are digital. In addition, it makes it easier for you to do business because the country has improved simple rules for business, as well as property rights that will benefit you.
- Likewise, the law will allow you to obtain 100% ownership of the company, if you are a foreigner.
- LLC licenses are quick to obtain as they are covered by the instant licensing initiative.
- To establish an LLC company in Dubai, there is no minimum capital requirement. However, it is the DED that will decide whether the capital contributed by shareholders will be sufficient to start the project.
- It has fewer commercial restrictions.
- You will be able to market your company legally within the Emirates without the need for a non-active sponsor.
- You may apply for any number of visas without restrictions.
- LLC company formation in Dubai will allow you to operate as a legal entity in the UAE, removing responsibilities from the members. More specifically, regarding obligations, as well as business operations.
Step-by-Step Guide
To start the LLC company setup Dubai, you will need to plan and carry out various legal processes. Next, follow the steps that we will indicate to open this type of company in the country.
Choosing a Business Activity
There are around 2,000 commercial activities to choose from, permitted by the Emirati government. Hence, you are sure to find the business you want to carry out in the corresponding list. Likewise, when you are going to choose the said activity for your company, first, do market research.
With this method, you can obtain information about potential clients and active rival companies. In addition, you can have a competitive advantage and can become the USP of your commercial brand.
Company Name and Ownership
The next step in LLC company formation in Dubai is registering the company name with the authorities. Likewise, to find it, you can consider the type of services, products, objectives, and niches, among others. Also, try to give them original and morally acceptable names that customers can easily remember.
In this case, you will need to submit at least 3 preferred business names for your business during the registration process. We also advise you to have several options for company names on hand as they are subject to availability.
Commercial location
Choose your business location based on your budget, type of business, workforce, and space required. Also, determine what infrastructure requirements you need, as well as what technology, nearby ports, and transportation are available. In the same way, a physical space is necessary to locate offices for the registration of the LCC Company in Dubai, which must be rented.
Document Preparation and Trade License
For the preparation and documentation of the business license for the LLC company formation in Dubai, you will require:
Prepare and submit your Memorandum of Association
MOA is a document that describes the business of the company and the ownership of shares. It will also include information about the authority and rights of your business. Similarly, it will define what the relationship of the company with shareholders and objectives is like. Also, keep in mind that you will need to appoint a maximum of 5 managers.
The LCC must comply in detail with the terms described in the MOA; otherwise, it will be considered a breach of the legal agreement. Additionally, the government offers many licenses such as commercial, industrial, and professional. Likewise, for certain activities, you will need licensing, approval, additional permits, and payment of the cost of LLC company formation in Dubai.
Get the license
Once the documents are verified, you can apply for the business license, which is an important step since your company will be part of the Emirati business ecosystem. Jointly, you will be able to legally take part in government initiatives and take advantage of them.
Before establishing your LLC Company, you will need the UAE visa, work card, and IDs. You will also need them for your partners, employees, and family members and you will be able to apply for the investor visa in the UAE with your family.
Manage and expand your business
Once you have acquired the licenses to the LLC company formation in Dubai, you can now begin operations. In this way, you can start hiring qualified labor, and sell and buy basic products among other things.
Why is it convenient to invest in an LLC company in Dubai?
Nowadays, businessmen and investors want to ensure their decisions when investing. Otherwise, if they make a mistake, it will cause great losses of resources and time. Consequently, below are the advantages of investing in an LLC company:
Affordable companies
When we think about forming a business in Dubai, the last thing we think about is accessibility. However, if you understand the business dynamics and what the jurisdiction of the region is, you will be able to reach an agreement regarding a profitable model for it. Hence, an LLC company meets the affordable requirement as there is no general application fee.
Additionally, there are no government fees and you will not have to pay anything additional when forming your LLC company in Dubai.
Limited Liability Protection
Your LLC Company will be considered a separate legal entity. Likewise, the business structure divides the finances of the business partners from those of the company. Consequently, none of the shareholders is directly responsible for any losses that the LLC could incur.
Thus, everything will come down to the capital invested in the company and no personal assets of the shareholders will be shipped under the LLC agreement. Furthermore, it is because of this protection of partners that has driven the growth of LLC companies in Dubai and the rest of the UAE. Likewise, investors will be responsible only for the amount invested in the business.
A large set of legal business activities
Unlike other business structures, the limited liability company in UAE has a wide range of activities available. That is, the DED, or Department of Economic Development, has a list of various activities for forming an LLC. However, the commercial activity will be of different natures and jurisdictions depending on the commercial location of the company.
These fields range from agriculture, and finance, to technology and many others. In addition, the process to register the LLC is perfected. Thus, submit the required documents and you will get the business license quickly.
Allows you to select your preferred business location
When you do the LLC company formation in Dubai you will be able to select any location for your business. For example, if your company was dedicated to the local market, form your company on the continent. You can also compare several office spaces and choose the most suitable one for your business.
If you wish, you can hire an experienced business advisor in Dubai to help you find the ideal location for your company.
Opportunity to apply for multiple visas
You will be eligible to obtain an investor visa when starting an LLC company Dubai. With it, you will obtain investor status in the UAE. Likewise, it will give you the right to remain in the country as a residents for 3 years and you will be able to request visas for your employed family members, among others.
However, to comply with the standard rule, you must have 100 feet square of trading spaces per visa. Additionally, it is recommended that to apply for multiple visas, you contact the DED. Therefore, you will have the opportunity to have a stable work and personal life by having visas for your employees and family members.
Costs Involved in LLC Formation
The LLC license cost in Dubai is around AED 1800 to start. In contrast, for additional charges, in non-Arabic business name, you will have to pay additionally AED 2000. Furthermore, for license renewal for LLC, you will pay from AED 8000 up to AED 15000 maximum.
Similarly, the cost for LLC company registration in Dubai is generally the same. Likewise, the only thing that will change the cost will be the number of visas you apply for, health insurance, and any additional government approvals. Additionally, you may also be able to modify the cost of the international commercial name that you assign to your company.
Required Documents for Dubai LLC Formation
Dubai seeks investment from trustworthy people to boost its economy. Therefore, documentation is a fundamental factor in LLC company formation in Dubai and the other emirates. Therefore, below you will see some documents that you will need to have on hand to formalize the creation of an LLC:
Individual and Corporate Documents
The individual documents for LLC company formation in Dubai are:
- Presentation of the three commercial names. In this particular, you must send the 3 name proposals for your company during the registration process. Likewise, the names must be unique and comply with the regulations of the DED or Department of Economic Development of Dubai.
- The valid copy of the passport of each shareholder. These copies must be very clear, and must clearly show the passport number, date of birth, full name, and signature.
- Present the Residence Visa or a copy of the tourist visa with proof of entry to the UAE. This copy of the page will be for each shareholder involved with the company. In addition, a legible copy of the tourist visa along with proof of entry to the Emirates. Also, a copy of the page with the entry stamp on the passport.
- Lease contract or Ejari. Present an Ejari, which is a system for rent registration. This way, you can verify that you have a physical space for your company office in Dubai. However, the document must be submitted certified and must include information on the location of your office. Additionally, the rental period and the rental conditions of the space.
- Additional documents. As for corporate documents, these will depend on the economic activity you choose. These additional documents will have to do with the chosen line of work, but if you have doubts about it, ask for expert help.
How Connect Middle East can Assist You
The LLC company formation in Dubai is a well-defined process that when carried out correctly can lead to success. Concerning this, if you follow to the letter all the guidelines established previously, you will be able to establish yourself without any problem
Business Consultation and Local Regulations
Hire expert services Connect Middle East will save you time, and money, and ensure total success. Likewise, our professionals can help you manage each process for the LLC company formation in Dubai and the other emirates. In addition, we can provide advice regarding local regulations, which we are fully familiar with.
Therefore, contact us and you can find solutions to any circumstance that warrants it, and thus be successful in this important country.
