LLC company formation in Dubai - Confused?
Like the rest of the world even Dubai offers several business structures or company types such as LLC, partnership companies, branch offices and FTZ ( Free trade zone ) enterprises. However, LLC is extremely popular with new entrepreneurs.
In a LLC business setup in Dubai, an expatriate / foreigner can build company through shareholding which is typically fixed at 51% for the local partner and 49% for the aspiring business entity. A point to note - the type of activities that can be conducted by this enterprise is dependent on the type of license obtained.
So, what is LLC Company in Dubai and what are advantages of LLC Company setup in UAE?
• Protection -
As the name suggests, Limited Liability Company offers personal protection in case the business idea backfires. It simply means bad debts and a myriad of liabilities arising out of failed business does not put the partner into any uncomfortable situation, typically with the court of law.
• Capital -
LLC company formation in Dubai doesn’t demand you to put/show any minimum capital in bank. If a new company requires X amount then it can start its business with the said capital. However, the setup fees, license charges, visa coverage and a host of other expenditures need to be taken into consideration.
• Bouquet of Business Activities -
LLC company setup in UAE offers a bouquet of business activities which can be conducted from mainland Dubai. New business entities simply need to pick the right type of license, the one that matches their aspiration or existing line of work. DED or Department of Economic Development has a list of every single activity which can be initiated in Dubai.
• Residency Visa -
Under the shelter of Visa an investor can enjoy some of the perks of a local citizen. Entrepreneurs can rent office space, residential space and apply for various amenities.
How to start a LLC company in Dubai?
Mentioned below are some of the requirements for LLC company formation in Dubai.
1. A local sponsor for LLC Company in Dubai will hold 51% stake in the new business. Many aspiring entities turn apprehensive after encountering this clause. However, there is no need to worry as the local partner who is typically a government employee or a businessman is a thorough professional. In fact, this entity is paid a yearly fee for his service, and that’s about it. Nonetheless, this could turn tricky and sometimes rebound; therefore it is advisable to hire services of business Setup Company such as Business Link UAE who provide end to end solutions.
2. Once a local sponsor is selected the next step is to reserve a company name.
3. Applying for license is the next obvious task which can be daunting as it requires submission of several documents such as passport and visa copies of the partner/s, Memorandum of Association, Certificate of Incorporation, Board resolution, rent agreement etc.
So, if you are looking for company setup in Dubai contact Business Link UAE one of the foremost company setup consultant in Dubai.
