Set up Free Zone Limited Liability Company in Dubai
Set up Free Zone Limited Liability Company in DubaiUpdated on Monday 20th February 2017
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A free zone limited liability company in Dubai (FZ-LLC) can be created by either individual or corporate shareholders. The UAE impose certain conditions regarding the ownership of a FZ-LLC. Depending on the size of the company and its domain of activity, the Dubai authorities might require as well a minimum capital. Our lawyers in Dubai can assist you with information regarding the documentation required in the formation procedure of a FZ-LLC.
Requirements for the opening of a FZ-LLC in Dubai
The FZ-LLC structure offers limited liability for the shareholders, to the company’s assets. One of the main requirements that refer to the formation of a FZ-LLC in Dubai is the percentage of the shares that must be distributed between a local sponsor and a foreign shareholder, according to a specific scheme. Thus a UAE national must be attributed at least 51% of the shares.
However this distribution of the shares does not imply that the profit must be split according to the same pattern. As a foreign investor you can still keep 100% of the profits, and you can negotiate a fixed amount that you can pay annually to the national sponsor. The profit share arrangements are flexible.
In order to complete the application for the registration of your FZ-LLC, you will need to fill an application form and to provide several documents such as copies of the passports of the shareholders. You might be asked as well to provide a summary of the project and the objectives of your company.
Our law firm in Dubai can assist you with the elaboration of the needed documentation for the registration of your free zone establishment in Dubai.
Advantages of a FZ-LLC in Dubai
One of the main advantages of a FZ-LLC is that it provides access to the local market. Your presence in the area gives you opportunities to extend your activity in the region.
Another reason for which so many foreign investors decide to open a FZ-LLC is that the local sponsor can be of real use for your start in business in a new environment. The national shareholder is going to provide the FZ-LLC with the expertise of the region and with a better knowledge of the procedures and requirements demanded by the authorities.
We kindly invite you to contact our lawyers in Dubai for guidance and support with the creation of free zone limited liability company in Dubai.