When you look to set up a new business in Dubai as a foreign investor, you have mainly three options for company formation – free zone company, offshore company, and limited liability company (LLC) or mainland company. The formation of a Limited Liability Company in the UAE comes with many benefits that usually investors don’t get with free zone and offshore company formation. An LLC company is the right entity type if you want to get the advantage of mainland business setup in Dubai with flexible and differential profit-sharing arrangements.

Main Advantages of LLC Company Formation in Dubai

• An LLC company in Dubai can operate its business and trading activities anywhere in the mainland and free zones in UAE. Also, it can operate trading activities in GCC (Gulf Cooperation Council) states.
• An LLC company owner is not accountable for any LLC’s debt in Dubai.
• There are no mandatory regulations to conduct annual meetings and keep records of meeting minutes and company resolutions.
• Very quick and easy business setup with a little paperwork as compared to other business setups in Dubai.
• Business loans and credit facilities are easily available to LLC company owners.
• There is no limitation on the number of Visas you can get for resource management in an LLC company.
• LLC company owners are allowed to set up their offices anywhere in the country.

Requirements for LLC company formation in Dubai

Unlike the free and offshore companies where 100% ownership of the company lies with foreign investors, there is a foreign ownership restriction with the LLC company structure in the country. To set up an LLC company in mainland Dubai as a foreign investor, it is necessary to understand the entity structure, shareholder structure, and profit-sharing arrangements as per the company laws in the country. For foreign investors, the primary requirements to set up an LLC company in Dubai include:

• To register and operate an LLC company in Dubai, there should be a minimum of 2 and a maximum of 50 shareholders in the company’s managing board.
• Every shareholder is liable only for their own funds in the business capital.
• It is a mandatory requirement to have a local partner or sponsor in the UAE, who must own at least 51% of shares of the companies in his name. A foreign investor can have 49% of the share.
• LLC companies are not allowed to operate banking, insurance, or investment-related business activities in the country.

Limited Liability Company (LLC) Formation in Dubai

When you are ready to meet all mandatory requirements and have a local partner to sponsor the business, you can apply for the LLC company registration as per the UAE Commercial Companies Law (CCL). Department of Economic Development (DED) is the government-authorized body that is responsible for the LLC company registration process and issuing of the business licenses for mainland business activities.

It is very easy to set up an LLC company in Dubai through a tailored process. You will need all the mandatory documents along with the company’s Memorandum and Articles of Association with shareholders and ownership details for the company registration. When you are ready with all the documents, you can easily register your business with the Dubai Commercial Register and Department of Economic Development (DED).

Documents required for the LLC company registration

• Certified copies of all the shareholders’ passports
• UAE residence visa copy, if applicable
•  NOC from UAE residence visa sponsor
• Two copies of Certified address proof for each shareholder
• Sovereign Application Form
• Shareholders’ CVs and professional reference letter

These are the basic information that every foreign investor must know if they are looking for a mainland business setup in Dubai. It gives them an added advantage of business operation within the UAE and GCC (Gulf Cooperation Council) states. As Socialite Consultancy Services, we offer complete assistance to our clients for LLC company formation in Dubai through the registration process. A team of professional business consultants and experts will help you understand the whole LLC structure and its operations as per the company laws and regulations in the UAE. We ensure a quick and easy registration process by following all the legal procedures so that you can set up and run your business in no time.