Open a Limited Liability Company in Dubai - 2023 Update
Open a Limited Liability Company in DubaiUpdated on Saturday 18th March 2023
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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.
If you want to open a limited liability company in Dubai in 2023, our lawyers are at your service.
How to open a limited liability company in Dubai in 2023
After you have chosen the name of the company, the next step you need to do in order to establish an LLC in Dubai in 2023 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.
Why set up an LLC in Dubai in 2023
Starting a business in the Emirates in 2023 implies selecting an appropriate business form and, in Dubai, the limited liability company seems a great option for those seeking to register a legal vehicle they are accustomed to. Moreover, the simple registration formalities are easy to respect.
The creation of a limited liability company in Dubai in 2023 implies preparing a few documents and filing them with the Trade Register. The procedure takes only a few days to complete.
The Central Bank of the United Arab Emirates predicts real gross domestic product (GDP) growth of 7.6% this year, up from its earlier expectation of 6.5%. Real GDP growth for 2023 is now projected by the central bank to increase by 3.9%, with non-oil GDP predicted to grow by 4.2%. Even if a new corporate tax is about enter into effect in June, the authorities are optimistic about further attracting foreign investments in other areas than the oil and gas ones, as the Government is trying to diversify the economy.
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.