Limited Liability Company Formation In Dubai
One of the most common business entities in Dubai is Limited Liability Company formation for engagement with commercial activities in the business hub. The Limited Liability Company (LLC) can be formed by people less than 50 and more than 2 all having limited liability to their shares of the overall company's capital.
Management And Equity Participation:
The minimum equity participation by United Arab Emirate nationalities in LLC formation is 51% and 49% for foreign investors. The profit and loss distribution of companies is mostly prescribed while the management responsibility of the company can be placed amongst all of the national and foreign partners.
Shares Subscription Criteria And Business Activates:
LLC's shares are not open to public subscriptions and debatable shares are not been offered by them. These companies may be licenced to capture a wide range of commercial activities as per the CCL.
However, all the commercial activities for Limited Liability company formation in Dubai are other than banking, investment of money for other parties and insurance unless the company's management obtain approval in advance from Central Bank or appropriate authorities of UAE.
If both the foreign investors and UAE national partners are having a common objective of their business to be achieved in the state, LLC can be used as means for their joint journey to achieve their goals.
However, all the commercial activities for Limited Liability company formation in Dubai are other than banking, investment of money for other parties and insurance unless the company's management obtain approval in advance from Central Bank or appropriate authorities of UAE.
If both the foreign investors and UAE national partners are having a common objective of their business to be achieved in the state, LLC can be used as means for their joint journey to achieve their goals.
Limited Liability Company Establishment Process:
The process to establish a LLC in UAE includes:- Obtaining an initial approval for activities of the company and name from the Department of Economic Development in Dubai (DED).
- If the business activity is of a special nature, then it will require approval from the activity specific department and ministry.
- The management must draw up their company's Memorandum of Association that must be attested from the court.
- The company's occupancy in commercial building must be finalized and attested by the Real Estate Regulatory Agency of Dubai.
- Obtaining all the necessary approvals Department of Dubai Municipality Planning known as Dubai Municipality Planning Department (DMPD).
- The management must submit applications along with all the initial approvals including attested copies of office occupancy contracts and Memorandum of Association etc. to DED.
- After critically examining all the documents by the legal departments, the specified LLC's name is entered in the Commercial Register and in Ministry of Economy Bulletin the company's Memorandum of Association is published.
- Licence is then issued by the DED for company formation in Dubai.
- Later, the company is registered with Ministry of Labour and Department of Immigration.
- Finally Customs Code is issued to the company and is registered with Dubai Customs Department.