Dubai, today defines itself as a prosperous city on the global platform, teeming with endless possibilities for growing businesses to invest and partake in the new heights of economic success. And while many big players like to support by setting up offshore companies or import-export companies, the method of setting up an LLC Company in Dubai is slowly catching on and gaining the global attention of businessmen.
In this article, we will be talking and learning about what is an LLC Company and what is the scope in the entirety of setting up a Company in Dubai.
LLC means Limited Liability Company, and the Department of Economic Development regulates the formation of these kinds of companies in Dubai. Limited Liability Company (LLC) is the most common form of business in the UAE. An LLC Company in Dubai can be formed by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the business capital. Attaining a registration license for setting up an LLC Company in Dubai is known to provide a broad scope to businesses worldwide. It is not only flexible in terms of management but also allows differential profit-sharing arrangements.
However, specific legal provisions are required to be followed while establishing LLC in Dubai, such as local nationals, need to invest at least 51% in LLC. While that individual owns that 51% share in the company but that’s not his investment. Therefore, company formation in Dubai requires the professional services of legal consultants that ensure compliances on various fronts and guide about structuring shareholding distribution and selection of the best legal entity for the business.
Moving on, let’s get to know the scope of LLC Company formation in Dubai and the various advantages it entails-
> An LLC formation in Dubai can make any type of business activity operational in the UAE’s mainland, considering it does not include insurance, banking, or investment. LLCs can also not practice law, auditing, accountancy, or any other type of consulting service. Moreover, there is no cap on the number of visas obtained from the administration regarding the technical services LLC in Dubai.
>The stakeholders and the investors of an LLC company in Dubai can avail of the investor’s visas under which they can get investor status in the UAE.
>An LLC is exempted from paying the standard 5% customs duty on imported goods. Also, restrictions are not imposed on real estate ownership.
What remains a constant benefit to investors and businessmen with entrepreneurial plans surrounding LLCs, Import-Export Business, and Offshore Companies is the ease with which Dubai administration services grant the low-cost license to conduct stress-free business within the mainland of UAE and globally.
Stated below is a breakdown of LLC license cost as provided by the market to the LLC Company formations in Dubai.
FOR COMMERCIAL LICENSE, DUBAI (LOCAL+1 EXPAT)
- License and Sponsor Fees
- Initial Approval: AED 120
- Name Approval: AED 620
- Notarization of MOA: AED 1500
- License Fee: AED 10,000 p.a. (approx.)
- Additional Fees as per the requirement
- 2.5% of the premises’ annual rent levied as market fees (now exempted): AED 250 p.a.
- Trade name charges: AED 2,000-AED 3,000 p.a.
QUOTATION FOR PROFESSIONAL LICENSE, DUBAI (SOLE PROPRIETORSHIP)
- License and Sponsor Fees
- Initial Approval: AED 120
- Name Approval: AED 620
- Notarization of MOA: AED 900
- License Fee: AED 5600 p.a. (approx.)
- Additional Fees as per the requirement
- Foreign name charges: AED 2,000 p.a.
These are some of the most commonly paid fee amounts for anyone interested in setting up an LLC Company formation in Dubai. Therefore, the total cost for setting up an LLC Company in Dubai would be somewhere around AED 28000 approximately.
Compared to the amount garnered in terms of fees in setting up businesses elsewhere globally, UAE offers comparatively low fee rates along with a booming market for LLC owners to be a part of. Even though the realization of potential for LLC formations in Dubai is nascent, there have been massive players who have already settled down and made profitable businesses with the world and mainland UAE in recent years. Some of these have been mentioned below for you to look at the empire built on the prosperous grounds of Dubai, under the blanket of setting up an LLC Company.
With big names like those mentioned above, their involvement in the LLC market should be a testimony enough for interested entrepreneurs to target the economic wealth that UAE boasts globally and be a part of it through forming an LLC Company in Dubai.
