Dubai LLC Company Formation: A Detailed Step-by-Step Process

Dubai is one of the most sophisticated and prosperous cities of the Middle East, which has attributes of the western and eastern countries. Various business owners consider Dubai to be an extremely economical and alluring place in the world to set up a business. This is the reason why we can see a continuous surge in the number of Limited Liability Companies in Dubai.

Documents Required To Register an LLC in Dubai

A Limited Liability Company (LLC) is a form of business that offers protection to the business owners from personal liabilities. It also provides resilience in management and taxation as compared to other business structures. The special feature of an LLC is that it can be formed with a minimum of two members and with a maximum of 50 shareholders. Each member will be held liable for his/her share of the company’s capital. So, the shareholders are completely protected from any liability. Some of the documents that are essential for starting an LLC in Dubai are:

• Application certificate from the Department of Economic Development(DED) in Dubai
• An elaborate business plan
• A copy of the Emirates IDs
• Passport or identity cards that are valid
• A Memorandum of Association
• Passport of a local sponsor
• A No Objection certificate if one of the shareholders is working in a firm in UAE

Benefits of Forming an LLC in Dubai

If you wish to set up an LLC in Dubai, your choice is undoubtedly the perfect one. UAE boasts of free trade zones, which offer zero income tax and complete ownership with the added advantage of amazing infrastructure. Several important decisions related to business and many legal procedures are involved in setting up an LLC in Dubai. The free zone LLC company is an attractive feature that allures most business owners towards setting up an LLC in Dubai. Some of the benefits of starting an LLC in Dubai are:

• One of the most prominent benefits is that an LLC is extremely easy and quick to set up. You just need to register your business with the DED, which takes approximately 90 minutes. Usually, an LLC is set up within four to five days. But, in some cases, it might get delayed due to delays in issuing government certifications.
• The best part about setting up an LLC in Dubai is that they are completely tax-free in the UAE and do not have to pay any taxes on income.
• A minimum share capital is not required to start an LLC in Dubai.
• Setting up an LLC in Dubai means that you can trade anywhere in the UAE which includes the GCC region and also the free zones.
• The Dubai economy is popular for its distinctiveness which ranges from tourism, finance and technology to real estate. After obtaining a license from DED, an LLC can operate the business in any one of these sectors.

Steps To Form an LLC in Dubai

The cost of forming an LLC in Dubai begins at AED 18,500. In case you choose a name for the company that is non-Arabic or foreign, an additional charge of AED 2000 will be incurred by the company. The fee for renewal of the LLC license is somewhere between AED 8000 to AED 15000. The costs may differ according to the steps involved in the process – the setting up of some businesses could require some additional charges. Some of the steps involved in the process of setting up an LLC in Dubai are:

1. Selecting a Business Name

   Selecting a trade name is the most important step for setting up a company. The name throws light on the goals of the business and the objectives of the company. The name should be unique and should not have any similarity with any existing business name. It should comply with all the regulations set by the government and it should not be vague.

2. Engage With A Local Sponsor

   Engaging with a local sponsor is an extremely important step if you wish to start an LLC in Dubai. This will be of help to the foreign investors of the company. According to the laws of the UAE, a sponsor should hold a minimum of 51 percent share in the capital of an LLC. They are also known as the local service agents.

3. Documentation

   This is the next step which is of utmost importance as it gives a detailed insight into the objectives and goals of the company. Essential documents, such as Memorandum of Association and Articles of Association should be submitted to the authorities in charge.

4. Business License

   Obtaining a business license from the DED is the next step in the process of setting up an LLC in Dubai. If you opt for trade in Dubai, you should know that a trade license is highly essential for the process.

5. Registration With Chamber of Commerce

   Registering the LLC with the Chamber of Commerce in Dubai is the next vital step. It provides recognition to the business in the market and also helps in increasing networking.

6. Starting a Bank Account

   Opening a bank account with a local bank is extremely essential for the owner of an LLC in Dubai as it helps in conducting finance-related operations, managing various business transactions and maintaining the accounts books.

7. Receiving Certification

   Once all the above steps are completed and all the necessary laws have been complied with, the government and the authorities in charge will issue a certificate giving approval for setting up an LLC in Dubai.

The process of setting up an LLC in Dubai requires a lot of research, continuous follow-up of legal procedures, professional guidance from a consultancy company and a lot of planning. Even though the process of setting up an LLC in Dubai seems simple, the assistance of qualified professionals is needed when it comes to taking care of all the government-related work. They ensure that the process of setting up the company is a smooth process. LLC company formation in Dubai is an extremely amazing idea to vouch for as Dubai is slowly transforming into the hub of business activities in the world.