Setting Up a Limited Liability Company in Dubai, UAE

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Limited Liability Company Dubai is amongst one of the most popular choices for entrepreneurs to setup business in Dubai. People from all around the globe are attracted to the business opportunities in Dubai and the benefits that come along. One of which is a hundred percent ownership of the company. Other benefits of a Limited Liability Company Dubai include various tax benefits, excellent infrastructure, ease of business setup, constant governmental support, advanced technology, and much more!

All of this makes the idea of doing business in Dubai even more tempting.  If you are interested in company formation in Dubai, you should read ahead. You can learn all there is to know about a Limited Liability Company in Dubai, its formation cost, and required documents. But first, let’s take a look at the significant advantages of a Limited Liability Company Dubai.

What Are The Major Benefits of a Limited Liability Company Dubai?

If you’re wondering why LLC formation is one of the most popular choices among entrepreneurs for doing business in Dubai, you will get the answer as you read further. Several benefits come along with the LLC formation in Dubai, some of which are as follows:

1. An LLC can be formed with up to fifty shareholders.

2. As per the laws, you can get 100% ownership of the company.

3. Apply for as many visas as per the size of your company.

3. According to the recent laws, there is no need to collaborate with a local service agent or a national sponsor to form an LLC in Dubai, UAE.

4. Moreover, you can choose from a large pool of business activities – up to 10 per license.

5. You can also sponsor your family.

6. If you form a Limited Liability Company Dubai, you can trade in local as well as global markets.

7. Furthermore, easily open a corporate bank account with increased credibility.

8. Hire foreign staff without any hassle through the visa quota.

9. No requirement for fixed minimum capital.

10. The liability of the shareholders is limited to the shares they own in the company.

Also Read: What is UAE Mainland Company Formation?

What is the Process to Form a Limited Liability Company?

For those who are not familiar with the process of forming a Limited Liability Company, it is straightforward and easy to follow. You can complete the registration process within 6 to 7 working days. To reduce the time further, you must get in touch with a business consultant to help you speed up the process. You must go through the steps given below to complete the registration process of your LLC in Dubai: 

1. Select Business Activities

The first step is to decide what business activities you want to conduct in the country. The Dubai government offers more than 2000 activities as per various business sectors to choose from. Select from the options provided and plan accordingly. You can also apply for external permission for an activity not on the list.  

2. Register Your Company Name With DED

Now, you must select a suitable name for your company. You need to keep in mind a few things while deciding your company’s name. You are not allowed to use any foul language or mention any religious word in the name. Also, you must avoid using any abbreviations. Once you decide on the name, register it with the DED. Get your trade name registration certificate for future reference.  

3. Apply for Initial Approval

Apply for initial approval by submitting an application with a few other documents. They include national ID, passport copies, visa copies, trade name registration slip, and business activities selected along with the business plan. Initial approval from officials means that they have no problem with you forming a company in Dubai. 

4. Rent an Office Space

Rent office space in a suitable location. Choose a location from where you can easily reach your target audience. Make sure the office space meets the dimension and equipment space terms and conditions. Furthermore, register it online with Ejari to secure your tenancy contract and unique Ejari number for future references.

5. Draft MoA and AoA

Draft and sign MoA and AoA with all the stakeholders. The MoA must include the name of your company, physical address of your office, name of the shareholders, along with their nationalities and residential address.  

6. Contract Establishment

Sign a contract of establishment in the presence of a notary, open a local bank account and obtain a certificate for verification of the share capital deposit. 

7. Wind Up the Paperwork

Complete all the paperwork and apply for a business license. Once you submit all the required documents along with the application form, the government officials will thoroughly examine them. If all is in place, the DED will send you a confirmation mail.  

9. Complete the Payment for License Fee

Finally, complete payment for the one-time license fee through the payment voucher shared by DED through email. Remember, it is vital to pay the required fee within 24 hours of the license issuance. If you fail to do so, it may be canceled.  

10. Get Labor Cards

Register your employees with the Ministry of Labour and General Authority for Pension and Social Security. Get the visas processed, get the labor cards and submit other legal documents.

What is the Cost of Limited Liability Company Formation in Dubai?

The cost of forming a Limited Liability Company in Dubai can vary depending upon the size, nature, industry, and location of the company. Best part? There are no hidden costs involved in LLC company formation. It cost you anywhere between AED 24,000 to AED 27,000. This includes:

1. Trade name registration fee.

2. Initial approval fee.

3. Office rent and Ejari registration fee.

4. Business license fee.

5. Membership fee for Chamber of Commerce.

6. 5% of the office rent to be paid to the government.

7. Waste material fee to be paid to the Dubai municipality. 

Connect With Shuraa

Now that you have all the necessary information about Limited Liability Company Dubai, you can start planning to open one of yours. Although the process is simple to follow, we suggest you connect with company formation professionals to avoid any mistakes with the paperwork. It can be tedious to collect and submit the documents if you haven’t done that before. You can seek help from the experienced business consultants at Shuraa Business Setup. We will walk you through the registration process, assist you in the paperwork and get your business license at a low cost. You just need to do is call us, let us know your requirements, and leave the rest to our business consultants.

Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message on +971 50 777 5554. You can also write to us at info@shuraa.com.