Limited Liability Company (LLC)in UAE

Limited Liability Company (LLC)
In Dubai

Prices starting fromAED 5,750

Shams Location

What is a Limited Liability Company?

The mainland UAE legal entities are required to be licensed by the DED or Department of economic development and governed by the commercial companies’ law or CCL. Foreign investors would prefer establishing a business in the mainland because it’s similar to the free zones, where there is no territorial restriction on business activities or location of the office or premises. A mainland company is free to trade anywhere in the UAE including all the free zones in the Emirates. Limited liability Company in Dubai is a most common form of business with a minimum of 2 shareholders and maximum of 50 shareholders, where their liability is limited to their shares in the business capital.

Legally Limited Company (LLC) in Dubai

LLC or limited liability Company in Dubai is the standard type of company in the UAE mainland. DED is the concerned government authority to issue the entire license for LLCs. It’s responsible to classify and regulate the types of economic activity that may be undertaken.
LLC company formation in Dubai is not restricted on the place of trade like free zone companies or GCC. Further, there is no limitation on the real estate ownership or the number of visas. The company doesn’t require any minimum capital investment. The mainland companies are not required to pay 5% standard customs duty on the imported goods.
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UAE Foreign Ownership Restrictions

The primary limitation of foreign investors setting up a Dubai LLC company registration is the UAE foreign ownership restrictions. While initiating a LLC, the commercial companies’ law requires at least 51% of the shares to be registered in the UAE or GCC
national sponsor often referred as a local partner.. The sponsor is either registered to a GCC or UAE national sponsor.

If your business is expected to trade on UAE mainland with local companies, then, get a DED license and obviously, it requires a local partner. Most of the foreign investors are concerned with the ownership restrictions and highly uncomfortable about the control of their company to a local partner. To support these concerns, A & A Associates created a corporate shareholder model. This allows clients to maintain 100% foreign ownership control and control in business while remaining in full compliance with UAE companies’ law.

Corporate shareholder model

A & A associate has created a number of UAE owned LLCs; these companies are fully managed and controlled through legal agreements and power of attorney. The companies act as 51% local partner through a suite of management control, risk mitigation documentation, financial control, and day-to-day running of the business back to 49% shareholder in return for a fixed annual sponsorship fee.

A & A associates will not take any commercial role in your new company and we estimate a fixed annual fee, without any variation depending on the increased turnover or profitability
of the business.

Corporate Sponsorship model prevents investor from dealing with individual person as a shareholder, but rather with an international, licensed and fully regulated company, free
from emotional ties and local vested interests.

A & A associates allocate multiple signatories for the whole year. Our company offers perpetual succession, where business will not get affected by the bad health or death of a local individual partner.

Corporate shareholder model also acts as a local service agent where they don’t require 51% of local share. For example, professional license, representative office or branch.

Steps to setting up an LLC:

Most of the documents are required to be notarized and attested in the applicants’ home country as well as in the UAE consulate. The notarization process commence as early as possible, because it takes significant time

Note: Corporate documents listed above including,

The corporate documents will be further attested by the Ministry of Foreign Affairs, Dubai.

All the corporate documents should be translated into Arabic should be attested by the Ministry of Justice, Dubai.

Major Advantage of setting up an LLC in Dubai:

Disadvantages of Limited liability Company in Dubai/UAE:

LLC Company Formation in Dubai– FAQs

According to the new UAE commercial companies Law, LLC can be formed with either a single shareholder or multiple shareholders. In most of the case, foreign investors have a minimum of 2 shareholders to meet the UAE foreign ownership restrictions.

We don’t require a registered agent but due to UAE foreign ownership restrictions, it’s essential that foreign investors should seek advice and use a firm with extensive experience in setting up UAE mainland LLCs.

Yes, it offers tax benefits. LLC is permitted to trade anywhere within UAE and GCC. LLC can
obtain tax residence certificate from the UAE ministry of economy.

LLC operate under following license types,

  • Commercial license including all kind of trading activity
  • Professional license covering professions, services, and crafts
  • Industrial license cover industrial and manufacturing activities.

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MD Abrar Mulla
Mohammaed Abrar
Company Formation Specialist
Solve out the crucial procedures of business setup with MOHAMMAED ABRAR, passionate and efficient member of our team working hard to achieve customer satisfaction and obviously, he exceed your expectations. Having around 3+ years of experience, he identifies the best approach based on your business sector.

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