LLC COMPANY SETUP IN DUBAI

The most common type of company that is created in the UAE is the LLC or Limited Liability Company. Chances are you might've received advice to setup your business in the form of LLC. Although it might appear that an LLC formation in Dubai is a protracted process, it can be made easier and smooth if you get the right people to do it for you. Exsolution will help you get the company started by soliciting with the government and other authorities to get the necessary approvals and resources so that the company can be setup in a smooth and efficient way.

LLC

An LLC is a company that has a minimum shareholder count of 2 people and a maximum shareholder count of 50. Each partner and their liability will be only to their share of the capital in the company and not to anything of their personal wealth. To have an LLC company setup in Dubai you will have to a minimum share capital of AED 300,000. The same rule applies to expats as in with the mainland company type, where in they will only be entitled to 49 % of the share.

Silent Partner

This is what most expats nowadays are doing when they are required to setup an LLC in Dubai. They will be choosing a UAE national as the local service agent and then will be paying that person a monthly amount to have them remain absent in their business and relinquishing the control to the expat although still possessing the share of the company. When setting up an LLC company, you can decide with other shareholders how the profits and losses will be distributed. A management agreement has to be formed between you and the national detailing how the shareholding is beneficial, and with regards to the profit sharing. For the formation to happen, you will need to reserve a trade name and get an initial approval from the Department of Economic Development.

The Documents for an Initial Approval

Once you have received the initial approval, then you are able to apply for other certifications and related documents from the government departments, which of course will differ according to the type of company that you want to setup in Dubai. A Contract of Establishment should be signed in front of a notary, and subsequently, you'll have to submit the document to the Department of Economic Development along with other documents for the final approval.

The details that should be definitely there on the agreement that you submit are Trade Name, Primary Business Activities, Office, Office Address, Shareholder Names, Permanent Address and Nationality, Residence, Details of profit sharing and loss, Investment Capital, Address of the office managers, the notification method of the office.

Documents for Final Approval of Company Setup

Here in Dubai, the capital requirement law was scrapped and now there is no need to get a certain amount deposited in the bank. Moreover, there is no requirement to have an auditor certificate. Although, in other Emirates, the rules will be different and there is a capital requirement that you must meet before you can setup an LLC company.

The manager of an LLC company in Dubai will be responsible for managing the account and it can be one person or five. A shareholder can transfer his share and completely liquidate it.

Benefits of an LLC Company Setup in Dubai

What Exsolution can do for you