LLC Company Formation in Dubai
Setup business in Dubai was never easy like this before. The Department of Economy and Tourism (DET) is the License Registration authority in Dubai. DET will ensure the process of company formation in Dubai become quite easy and affordable. The DET License is one of the most flexible options to start up a company in Dubai. An LLC Company gives a huge scope to do business all across the world.
What is a LLC Company
LLC stands for Limited Liability Company, which is a popular legal structure for businesses setup in Dubai. An LLC company is a separate legal entity from its owners, which means that the liability of its owners is limited to the amount of capital they have invested in the company. LLC companies are regulated by the Department of Economy and Tourism and are required to have at least two shareholders and a maximum of 50.
100% foreign Ownership in LLC Company in Dubai MainlandNo need for a local sponsor for LLC company in UAE.
As per new company law implemented from 1st June 2021, there is no more requirement of UAE national to hold the 51 % share of the LLC Company, now investors can own 100% share of a mainland trading company in UAE.
How to setup an LLC Company in Dubai Mainland
Setting up an LLC company in Dubai mainland involves several steps and requirements. Here are the general steps to follow:
- Trade name registration a company name to be registered by the Department of Economy and Tourism (DET).
- Finalize the business activities which fulfill your business needs.
- Prepare the Memorandum of Association (MOA) and submit it to the DET for approval.
- Apply for NOC & additional approval, in case of additional approval from the relevant authorities is mandatory. For example Dubai Municipality Approval, RTA Approval, Civil Defense Approval
- You can choose either Instant license (do not need an office space for first year) or Rent an office space to have a proper office or shop as business address.
- Make the final DET payment and get a trade license copy same time.
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Advantage of Limited Liability Company
As the name implies, members’ liabilities for the debts and obligations of the LLC are limited to their own investment. This is one of the key advantages of a limited liability company. In other words, if your company gets sued, your personal assets, like bank accounts and real estate, are protected. At most, you can only lose the money you put into the business and nothing else.
Keep in mind that this protection is not all-encompassing. Members can still be held liable for criminal behaviour or if they neglect to follow certain rules about business management. Consult with a lawyer to make sure you are not violating these rules and exposing yourself to personal liability.
No Income tax:
Enjoy the freedom whatever you earn as personal income, there is no income tax on individual, Yes UAE has launched Corporate Tax on business and VAT on all services and goods.
Some legal structures limit the number of people allowed to file as owners. With an LLC, there is no limit to the number of owners. An LLC can have one member or hundreds of members.
In an LLC, the amount of money that owners invest in the business doesn’t need to equal their percentage of ownership. When an LLC is formed, members create an operating agreement. in which different percentages of company profits and losses can be assigned to owners regardless of the amounts of their initial investments. So you can make a deal with an investor to have them finance half of your business without necessarily owning have of your business.