Ingenious Corporate Services – Company Set-up in Dubai, United Arab Emirates
Limited Liability Company in Dubai, UAE
Dubai offers a favorable business environment with a relatively low corporate tax rate and various free trade zones offering additional benefits such as import and export duties exemptions. This, coupled with its strategic location as a hub for international trade and tourism, makes it an attractive destination for businesses looking to establish a presence in the Middle East. And when it comes to business setup in Dubai or any part of the UAE, a Limited Liability Company (usually called LLC) needs a special mention. A Limited Liability Company in Dubai is a business entity separate from its owners in terms of finances and liabilities. This means the owner’s assets are protected if the business incurs debt or is sued. Governed by the UAE Federal Commercial Companies Law, LLCs in Dubai can fully own the business since June 1, 2021, when the Government amended the Law, granting foreign investors 100% ownership of their mainland businesses.
Most business persons, local or foreign, choose to take the LLC company formation route to enter the thriving market of the United Arab Emirates. Conspicuously, a Limited Liability Company (LLC) is the most common form of company structure in the UAE mainland. LLC company formation is popular in Dubai for various reasons, and the major one is that it allows for 100% foreign ownership while also providing limited liability protection for the owners. An LLC typically requires at least one shareholder and must have a minimum capital requirement of AED 300,000. This type of company structure is suitable for businesses that want to enjoy the advantages of operating commercial activities from the UAE mainland, such as 100% business ownership for more than 1000 commercial and industrial activities, 100% profit and capital repatriation, availability of a wide range of trade licenses and restriction-free trade across the globe amongst other.
Additional Benefits of Setting Up an LLC in Dubai, UAE
Dubai LLCs are identical to LLCs in other countries based on the American standard and are internationally acknowledged. Incorporating a limited liability company (LLC) in Dubai, UAE, has various business advantages. These include:
Tax benefits
LLCs in Dubai are subject to a low corporate income tax rate of only 9%, which can help businesses save money on their taxes. Additionally, there are several free trade zones in Dubai where businesses can operate tax-free. The United Arab Emirates also has a double taxation avoidance treaty with many countries, meaning that profits and capital gains are not taxed twice.
Ease of doing business
Dubai is known for its pro-business environment and streamlined process for setting up and running a business. This can make it relatively easy for businesses to establish themselves in Dubai.
Additional Benefits of Setting Up an LLC in Dubai, UAE
Dubai LLCs are identical to LLCs in other countries based on the American standard and are internationally acknowledged. Incorporating a limited liability company (LLC) in Dubai, UAE, has various business advantages. These include:
Tax benefits
LLCs in Dubai are subject to a low corporate income tax rate of only 9%, which can help businesses save money on their taxes. Additionally, there are several free trade zones in Dubai where businesses can operate tax-free. The United Arab Emirates also has a double taxation avoidance treaty with many countries, meaning that profits and capital gains are not taxed twice.
Ease of doing business
Dubai is known for its pro-business environment and streamlined process for setting up and running a business. This can make it relatively easy for businesses to establish themselves in Dubai.
Access to a large market
Dubai is a major business hub in the Middle East and is well-connected to other parts of the world. This can provide businesses with access to a large market and potential customers.
Availability of affordable skilled and unskilled workforce
Dubai has a diverse population with a large number of skilled professionals. This can make it easier for businesses to find the employees they need to grow and expand.
Legal and regulatory support
Dubai has a solid legal and regulatory system that can provide businesses with the protection and support they need to operate successfully.
Access to a large market
Dubai is a major business hub in the Middle East and is well-connected to other parts of the world. This can provide businesses with access to a large market and potential customers.
Availability of affordable skilled and unskilled workforce
Dubai has a diverse population with a large number of skilled professionals. This can make it easier for businesses to find the employees they need to grow and expand.
Legal and regulatory support
Dubai has a solid legal and regulatory system that can provide businesses with the protection and support they need to operate successfully.
Currency
Dubai has a stable currency, which can make financial transactions more predictable and easier to manage.
Infrastructure
Dubai has world-class infrastructure, including airports, ports, and transportation networks, which can help businesses move goods and services quickly and efficiently., particularly for international investors.
Easy and quick setup
Elimination of the mandatory step of contracting with a local sponsor has expedited and simplified licensing and company formation process even more.
Currency
Dubai has a stable currency, which can make financial transactions more predictable and easier to manage.
Infrastructure
Dubai has world-class infrastructure, including airports, ports, and transportation networks, which can help businesses move goods and services quickly and efficiently., particularly for international investors.
Easy and quick setup
Elimination of the mandatory step of contracting with a local sponsor has expedited and simplified licensing and company formation process even more.
Things to Know Before Starting the Dubai Mainland Company Formation Journey in UAE
- With an LLC company in Dubai, you have access to all commercial license categories, including Trading, Professional Services, Manufacturing, Tourism & Hospitality.
- There is no limit to the amount of foreign ownership in an LLC.
- A local sponsor is no more required to form an LLC in Dubai.
- The entire company setup process in mainland Dubai usually takes about two weeks.
- There is no minimum capital requirement for LLC formation in Dubai.
- LLCs in Dubai can hire employees and sponsor their residency visas.
- There is no cap on the number of members an LLC can have.
- An LLC in Dubai is not restricted on where it can trade in the UAE (unlike Free Zone companies) or GCC. What’s more, there is no restriction on real estate ownership or the number of visas that can be obtained.
- A mainland company in UAE doesn’t have to pay the standard 5% customs duty on imported goods.
The Process of Mainland Company Formation in UAE
To form a Limited Liability Company (LLC) in mainland Dubai, you will need to follow these steps:
- Choose a name for your LLC and make sure it is available and approved by the Dubai Economy & Tourism Department (DET)
- Get initial approval for your LLC from the DET and pay the required fees.
- Rent an office space and obtain the RERA-registered tenancy documents.
- Obtain a Memorandum of Association (MOA) and Articles of Association (AOA) for your LLC.
- Submit the MOA, AOA, and other required documents to the DET for final approval.
- Obtain a trade license from the DET in the emirate where you plan to operate your business.
- Register your LLC with the Ministry of Economy and obtain a certificate of incorporation.
- Register your LLC with the General Directorate of Residency and Foreign Affairs (GDRFA) and the Ministry of Labor (MOL) registry to acquire partners or investor visas and employment visas. Once approved, you are all set to run your business in Dubai as a legal entity.
The Process of Mainland Company Formation in UAE
To form a Limited Liability Company (LLC) in mainland Dubai, you will need to follow these steps:
- Choose a name for your LLC and make sure it is available and approved by the Dubai Economy & Tourism Department (DET)
- Get initial approval for your LLC from the DET and pay the required fees.
- Rent an office space and obtain the RERA-registered tenancy documents.
- Obtain a Memorandum of Association (MOA) and Articles of Association (AOA) for your LLC.
- Submit the MOA, AOA, and other required documents to the DET for final approval.
- Obtain a trade license from the DET in the emirate where you plan to operate your business.
- Register your LLC with the Ministry of Economy and obtain a certificate of incorporation.
- Register your LLC with the General Directorate of Residency and Foreign Affairs (GDRFA) and the Ministry of Labor (MOL) registry to acquire partners or investor visas and employment visas. Once approved, you are all set to run your business in Dubai as a legal entity.
Documents Required for Setting Up an LLC in Dubai, UAE
In general, the mandatory documents required for setting up an LLC in Dubai, UAE, include the following:
- Copy of passport and Emirates ID of the shareholders
- No Objection Certificate (NOC) from the current sponsor (if applicable)
- Trade name reservation certificate
- Memorandum of Association (MOA)
- Initial Approval from the Department of Economic Development (DED)
- Lease contract or proof of ownership of the commercial address
- Application form for LLC registration
- Notarized and attested power of attorney (if applicable)
Please note that the requirements may vary depending on the nature of the business, the type of structure, and the industry it serves. Consult with a local legal expert or business setup consultant, such as Ingenious Corporate Services Dubai, for guidance on the specific requirements for your LLC. Click here for a quick online meeting with one of our best LLC company setup consultants in Dubai.
Documents Required for Setting Up an LLC in Dubai, UAE
In general, the mandatory documents required for setting up an LLC in Dubai, UAE, include the following:
- Copy of passport and Emirates ID of the shareholders
- No Objection Certificate (NOC) from the current sponsor (if applicable)
- Trade name reservation certificate
- Memorandum of Association (MOA)
- Initial Approval from the Department of Economic Development (DED)
- Lease contract or proof of ownership of the commercial address
- Application form for LLC registration
- Notarized and attested power of attorney (if applicable)
Please note that the requirements may vary depending on the nature of the business, the type of structure, and the industry it serves. Consult with a local legal expert or business setup consultant, such as Ingenious Corporate Services Dubai, for guidance on the specific requirements for your LLC. Click here for a quick online meeting with one of our best LLC company setup consultants in Dubai.
Get in Touch
Contact Us
Get in Touch
Contact Us
Our Blog
Mainland Company Formation in Dubai, UAE
Businesses can do wonders when they operate like a free bird! You want maximum freedom and flexibility to run your business.
Offshore Company Setup in UAE
A cartload of opportunities, high-quality life, business-friendly policies, a wide range of cultural and economic variations, world-class roads, air and sea connections.
Free Zone Company Formation in Dubai, UAE
The United Arab Emirates, particularly Dubai, is world-renowned for its lucrative business landscape.
Golden Visa , UAE
We all have a thing for gold, whether it’s a piece of bling or a piece of paper printed with a visa. From the latter, we mean UAE Golden visa.
Enhance Profitability by Outsourcing PRO Services in the UAE with INGENIOUS
INGENIOUS can be the key to streamlining your business operations, reducing costs, and allowing your team to focus on core business activities.
Registration of a Beauty Salon or Barber Shop in Dubai
Are you passionate about enhancing people's appearance? Discover how you can legally pursue your passion by establishing a beauty salon in Dubai, UAE.
Ingenious Corporate Services Client Reviews
Here's what our clients think about our company formation services.
Ingenious Corporate Services Client Reviews
Here's what our clients think about our company formation services.