Why Should One Consider Setting Up a Limited Liability Company Under Dubai Economy and Tourism?
Why Set Up an LLC in Dubai with 100% Foreign Ownership?
Types of Licenses for LLCs in DubaiRequired
Documents to Register an LLC in Dubai.
Tax Benefits for LLC Companies in the UAE
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 (LLC) 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 licenses available for a Limited Liability Company (LLC)?
As an LLC company in the UAE, you can operate under the following licence types:
· Commercial license: This covers all types of trading activity
· Industrial license: This license covers industrial or manufacturing activities
· Professional license: This license covers service related activities.
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 from Ascent Partners, to help you with the entire process.
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.
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.
Need help setting up an LLC in Dubai? Contact Ascent Partners today at +971 525537565 or mail us at ask@ascentpartners.ae to start up and scale your business.
With the right business set-up agency, you can also set up an LLC in Dubai.