Why Should One Consider Setting Up a Limited Liability Company Under Dubai Economy and Tourism?
One of the highlights of the recently issued Federal Decree-Law No. 26 of 2020, Amending Certain Provisions of the Federal Law No (2) of 2015 concerning Commercial Companies is the provision for 100% foreign ownership for significant trading and industrial related activities. This gives advantage to a foreign national to incorporate a Limited Liability Company without having an Emirati partner in the business.
A Limited Liability Company is the most preferred legal form of a mainland company. Common commercial activities such as foodstuff supply trading, garments, textile, goods wholesaler and general trading can now can be formed as 100% owned by foreign nationals and licenced as a Limited Liability Company. A Limited Liability Company is a corporate structure that protects its owners from being personally liable for the company's debts or liabilities.
What are the different types of licences available for an LLC?
As an LLC company in the UAE, you can operate under the following licence types:
· Commercial licence: This covers all types of trading activity
· Industrial licence: This licence covers industrial or manufacturing activities
· Professional licence: This licence covers service related activities
What are the standard documents required to set up an LLC?
Although the documentation varies depending upon the type of business activity, the following are some of the common documents that are required:
· Passport copy of all shareholders and managers
· UAE residence visa and Emirates ID copy, if applicable
· A No Objection Certificate (NOC) from the current sponsor/employer, if holding a UAE residence visa
· Corporate documents in case of a company owning shares
It is important to note that all corporate documents issued outside the UAE are required to be duly notarised and attested by the UAE Embassy from country of origin up to Ministry of Foreign Affairs in the UAE, legally translated to Arabic (f issued in a foreign language) and further attested by Ministry of Justice. You can avail the help of business set-up agencies, such as Ascent Partners, to help you with the entire process.
What are the advantages of setting up an LLC in the UAE?
Popular advantages of setting up an LLC in the UAE are:
· The shareholder's liability is limited to their shares in the company's capital
· An LLC can add up to 100 shareholders.
· No paid-up capital is required to form an LLC.
Are there any tax benefits to forming LLCs?
An LLC can obtain a Tax Residence Certificate, a document issued by the Ministry of Finance to benefit from double taxation avoidance agreements.
Conclusion
Dubai is one of the best-rated places to work and set up a business in. It provides ample growth and development opportunities. With the right business set-up agency, you can experience a seamless process to register LLC in Dubai.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.
To know more, Get in touch with us at ask@ascentpartners or 04 422 7339 to start up and scale your business.