Setup a limited liability company in Dubai, UAE
Currently, it is very common for entrepreneurs to want to develop their company under the Limited Liability Company in the UAE structure. This is because it provides Indian or foreign companies with protection and flexibility. Also, this type of economic structure is ideal for Indian entrepreneurs because it is simple and allows them to have 100% ownership of the company. In this article, we will give you all the information you need to know about the Limited Liability Company in Dubai. The first thing will be to explain the LLC meaning in UAE. Subsequently, we will show you the differences that exist between free zones and LLC Companies. Additionally, you will see the benefits of starting a Limited Liability Company in UAE and the entire process that you must follow. 1. Do you know what is a Limited Liability Company in UAE? If you want to start a business, it is important to know that there are different business licenses in the UAE. So, here begins our question: What is LLC in UAE? The Limited Liability Company or LLC meaning in UAE, is translated into the most frequent commercial structure in the continental UAE. The government agency in charge of classifying and regulating the different types of economic activities that can be carried out is the DED. For this reason, it is also authorized to grant all the corresponding licenses for LLCs. As mentioned above, this is the most common business structure in the UAE due to the benefits it provides. However, it is always important to be aware of all the challenges of doing business in the UAE. For this reason, keep reading the article to learn more about this business structure. 2. What are the differences between free zones and LLC Dubai? It is important to know why creating a company in the UAE is beneficial. This is because those entrepreneurs who wish to open a business in Dubai will have affordable and fast installation options. Additionally, they may choose to set up a business in a free zone or simply obtain an LLC license. The Limited Liability Company or LLC is the most common type of company in the mainland UAE. This has a structure that presents complete protection against responsibilities such as judicial conjunctions or debts. In addition, you can carry out any commercial activity that is allowed by the DED, from agriculture to finance. On the other hand, a free zone is an economic area that is special in the UAE. Either attached to the various ports or industry-specific, being designed to boost international trade. Thanks to this, in these areas the process of starting a company is simple and practically without complications. Throughout the UAE there are 45 free zones and many more are under construction. Thanks to these business structures that make it easy for any entrepreneur to start, it is part of the reasons why the UAE is considered the place for entrepreneurs. 3. Learn the benefits of this type of business structure Forming an LLC offers many significant advantages. For this reason, we will now see the benefits you will obtain by forming this structure: 3.1 A quick setup Forming an LLC is quick and easy. You can easily register your company in the DED, it will only take 90 minutes. This process typically takes four to five days to set up. However, various issues can occur that delay the procedure, including all government certifications. 3.2 Tax benefits In the UAE, LLCs are 100% tax-free. In addition, they do not have to pay taxes on any type of income. 3.3 A wide range of business activities There are many possibilities, from agriculture to the same trips. You will be able to request a DED license so that you can participate in any of the 2000 economic activities that are allowed in the country. 3.4 100% foreign ownership Many of the business license categories will no longer require a sponsor who is a UAE national. In this way, 100% foreign ownership is allowed in companies that are not part of the free zone. 4. Some tips to choose the best commercial structure for your company Certain criteria will help you make the best decision regarding the commercial structure of your company. Here are some tips to help you decide between free zones and Limited Liability Companies in UAE. 4.1 Ownership structure When you apply for a free zone license it allows foreigners to have 100% foreign ownership. Also, you are not required to have one or more business partners who are citizens of the UAE, while you are applying for the document. On the other hand, if you want to open your company under the modality of a Limited Liability Company in UAE; you need a partner who is a citizen of the country. Depending on the type of license that you are going to obtain the property of the company, can vary. If you are going to opt for an industrial or commercial license, 51% of the shares belong to the local shareholder; the other 49% of the shares belong to the foreign partner. However, if you apply for a professional license, the foreigner has 100% ownership of the company, but; likewise, you need a local partner. 4.2 Business scope If you decide to have company setup in UAE Freezone, the authorities set their own rules and regulations. For instance, the most common restriction is that all companies that do business in a particular free zone can only operate in that zone. Generally, this is for commercial licenses. So far, professional licenses are still free to serve the local market. Limited Liability Companies in UAE have the freedom to trade in the local market, in all free zones, and outside the country, without limitations. This is valid for all commercial and professional licenses. 4.3 Office or workspace In the case of free zone licenses, you can apply without having to have an office. In addition, you can choose the one
