Are you, too, wondering why there has been a rise in LLC company formation in Dubai? If yes, you should first know that Dubai witnessed a 58% growth in new business licenses for the first quarter of 2022. But what’s commendable is that, among all the legal forms of the new licenses issued, 19% were allocated for LLCs. So, an LLC company formation is a good option if you want to start a new business in Dubai.
But if you’re not familiar with the process, worry not. This blog will walk you through everything. It covers the benefits, the process, the necessary documents, and the costs involved. Let’s dive in.
What does LLC stand for in the UAE?
The Limited Liability Company (LLC) is the most popular business structure in the UAE, offering flexibility and legal protection. An LLC requires a minimum of two shareholders and can have up to fifty shareholders. Each shareholder’s liability is limited to their share in the company’s capital, providing risk protection for all owners.
Why Choose an LLC in the UAE?
- Limited Liability: Each shareholder is only responsible for their share of the capital.
- Access to UAE and GCC Markets: LLCs can trade freely across the UAE and GCC, offering expansive business opportunities.
- Versatile Business Activities: LLCs can participate in various sectors, including trading, services, and manufacturing.
By choosing an LLC in the UAE, businesses can enjoy extensive market access, legal protection, and the ability to scale operations locally and regionally.
What Are the Benefits of LLC Formation in the UAE?
There are numerous benefits of mainland LLC company formation in the UAE. However, here’s a list of the most prominent ones you must know.
1. Affordable Setup
Even though many people think that LLC company formation in Dubai is expensive, it is not. It is affordable, especially if you set it up in a free zone.
2. Straightforward Registration Process
The registration process for an LLC company formation in Dubai is straightforward. That’s why most entrepreneurs prefer an LLC company formation in the UAE. Moreover, government policies are highly beneficial. Besides, there’s also an option to set up a company via an instant trade license within an hour. Also, there is little paperwork and formalities in comparison to corporations.
3. Renting an Office Space is Not Compulsory
You must rent an office in the respective emirate for other business types. But, regarding an LLC in Dubai, you can rent an office anywhere in the UAE.
4. High Security
When it comes to security, the Dubai government always ensures that it’s always up to the mark. Moreover, assets and capital are formed in the company’s name during the business. There isn’t any national partner that you need now to create a company in Dubai. Thus, it ensures the foreign investment’s long-term viability.
5. Permit for Conducting Multiple Activities
Unlike various other business licenses, an LLC license allows you to conduct various business activities through one license. Hence, you can trade in thousands of business categories provided by the DED. What’s best is that you can do business anywhere in the UAE with the mainland LLC company formation in UAE.
6. Apply for Multiple Visas
An LLC owner is allowed to apply for multiple visas. But, they must have big enough office space. So, the bigger the office and the number of employees, the more the number of visas you can apply for.
Documents required for LLC Formation in Dubai
So, now that you know the benefits of an LLC formation in Dubai, you must also know the documents you need to gather.
- Certified passport copies of all the shareholders and managers.
- NOC letter from the sponsor if the partner or the Manager has a residence visa in the UAE, if applicable.
- Registration application form from the DED.
- Trade name reservation.
- Initial approval from the DED.
LLC Company Formation in Dubai: A Simple and Systematic Process
1. Determine the Nature of Your Business Activity
The first step in forming an LLC in Dubai is to decide on the business activity your company will undertake. Dubai allows a broad range of business activities, from trading and manufacturing to services and consulting. It’s important to define your activities clearly as they will be listed on your trade license.
2. Determine Your Company’s Legal Structure
After identifying the business activity, you’ll need to decide on the legal structure of your LLC. In Dubai, an LLC can be formed with 2 to 50 shareholders, and the liability of each partner is limited to their share capital. This structure offers flexibility and legal protection for business owners.
3. Register the Trade Name
The next step is to register a trade name for your LLC. Ensure the chosen name adheres to UAE naming regulations, which means it must be unique and not conflict with existing registered names. The trade name should also avoid any offensive or religious references.
4. Select Business Space and Location
To complete the LLC registration process, you’ll need to select a business location. In Dubai, a physical office space is mandatory for all companies. You can choose between options such as business centers, co-working spaces, or leasing your own premises depending on your needs.
5. Obtaining the Initial Approval
Once you’ve completed the previous steps, submit your initial approval application to the Department of Economic Development (DED). This approval confirms that the government has no objection to your business activities. Some activities may also require additional approvals from external authorities.
6. Registration and Payment of Fees
The final step in the LLC formation process is registering your company and paying the relevant licensing fees. Once registered, you will receive your Dubai trade license, allowing you to legally operate your business in the UAE. You may also need to submit the Memorandum of Association (MOA), which outlines the ownership structure and operational details of your LLC.
Cost of an LLC company formation in UAE
The cost of registering an LLC license in Dubai typically ranges from AED 15,000 to AED 30,000. For LLC license renewal, the fees generally range between AED 10,000 and AED 12,000.
But, to be precise, for a mainland LLC company in UAE, the price may start from AED 14,500. You can connect with the company formation experts at the Bizinvestfirm to learn about all the costs involved.
Do Your LLC Company Formation in Dubai Through Bizinvestfirm
Now that you’ve read everything there is about LLC company formation in Dubai; you can easily start the registration process. All you need to do is gather the required documents and submit them on time. However, it is best if you consult with company formation experts. The company formation experts at Bizinvestfirm are well-versed in LLC company formation in UAE. Therefore, they can help you with everything from helping you with the business plan to gathering documents.
Moreover, they also get the necessary permission from the concerned legal officials on your behalf. What’s more, they can get your LLC license in Dubai at pretty reasonable rates. All you need to do is call us, sit back, and we will take care of the rest while you attend to other important business matters.