Open a Limited Liability Company in Dubai
Open a Limited Liability Company in DubaiUpdated on Saturday 04th February 2017
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Many foreign investors decide to open a limited liability company in Dubai because it is easy to form and because it offers an advantageous profit return. You can look for support with the establishment procedure at a local law firm, that can help you prepare the documentation required for registration.
Advantages of a limited liability company in Dubai
According to the Companies Law in UAE, the limited liability company is a type of enterprise which does not necessitate a complicated forming procedure. It is also open to a huge variety of commercial activities except banking or insurance activities. Through the LLC, you can access the local markets of Dubai; all you need is to find one or more persons with whom you are going to share the liability of the company. The most common shareholding model for an LLC is 51% of the shares owned by a local sponsor and 49% by the foreign investor.
It is also possible to establish your company without a sponsor, if you open it in a free zone. But even if you share the ownership of the company, it doesn’t mean that you will share as well the profits. You can either pay annually a fixed amount of money to the local sponsor or a certain percentage of the revenues.
Another advantage of forming an LLC in Dubai is the 100% tax free. Moreover you have the possibility to open a global bank account in a fast and easy manner. As a foreign investor and founder of an LLC, you are also offered by the UAE a residence visa that you might use if you intend to settle for a longer period of time in Dubai.
How to open a limited liability company in Dubai
After you have chosen the name of the company, the next step you need to do in order to establish an LLC in Dubai is to draft the memorandum of association, the basic foundational document of the company. This official paper must be attested by one of the attorneys in Dubai.
Afterwards, you will have to register your company with the Company Register in Dubai. The Economic Department will approve your company and it will issue a license for it, according to the industry in which your company operates.
You can rely on our law firm in Dubai for the legal procedure of opening an LLC. Feel free to contact us in order to elaborate the memorandum of association and to complete your company registration in Dubai.