Suppose you have chosen to work as a limited liability company in Dubai. In that case, no city can be as fruitful as Dubai because it offers numerous benefits to entrepreneurs globally. Dubai is considered one of the wealthiest cities in the Middle East. This offers many startups a chance to generate a large share of revenue. Limited liability is a strong and famous company structure for many business owners. Let’s explore what a LLC company formation in Dubai means and how to establish an LLC in Dubai and other aspects. 

What is an LLC company in Dubai? 

Among the many benefits a limited liability company provides is freedom of taxation, management, and protection from personal liability. LLCs are a favorite for entrepreneurs and small businesses because they protect their shareholders and owners from being directly liable for debt and liability of the company. 

Additionally,  LLCs provide flexibility with tax and management that business owners don’t get with other corporate firms. In Dubai, an LLC can be formed with a minimum of one and a maximum of fifty shareholders. Where every member holds the responsibility for their share of capital. 

Benefits of forming an LLC company in Dubai

1. Faster process 

Forming an LLC in Dubai is a faster process that takes only ninety minutes to register your firm with the Department of Economic Development. However, the approval of documents related to government authority can cause a delay of 4-5 days. 

2. Benefit of tax

LLCs are 100% tax-free and do not have to pay income tax in the United Arab Emirates. 

3. Various business activities

First, get the DED license, and then you can start from 2000 permitted activities that include travel and agriculture. 

4. 100% foreign ownership 

A UAE national sponsor will no longer be necessary for some business license types. This permits foreign non-free zone businesses at 100%. 

Requirements for LLC company formation in Dubai

The government’s Department of Economic Development is responsible for classifying and regulating economic operations. DED is also responsible for issuing licenses to LLC companies in Dubai. 

Steps to open an LLC company in Dubai

1. Company name 

Decide the name of your company and the types of business activities you wish to carry out. 

2. Location 

To get the most out of your business,  consider several aspects when choosing the location for your business. That includes transit availability, your business objectives, and the nearest location to the market. 

3. Plan business activities 

Selecting the appropriate activity is essential for business setup in Dubai. You can easily find the ideal business activity for your intended firm. 

4. Approved documents by DED 

Once a name, activity, and place have been determined, send all supporting documents to DED for approval. 

5. Approved activities for business 

You must get approval from other relevant authorities if your planned business involves certain activities. 

6. License process 

You can get a Memorandum of Association, Certificate of Association, Trade License, Share Certificates, visas, labor cards, and other important documents once you have the approval of business operations from relevant authorities. 

Documents required to start an LLC in Dubai, UAE 

When forming an LLC in Dubai, documentation is required by the Department of Economic Development (DED). These documents must be submitted directly for easy processing. 

• Passport copy of investors 

• Copy of Emirates ID 

• A copy of the registration form for DED

• The lease for the office block 

• Visa for entry 

• A document containing the reserved company name 
  

Types of LLC licenses in Dubai

1. Commercial license

Companies engaged in a variety of trading activities involving commodities, services, and other things are eligible to apply for these licenses. Among the activities that fall under the purview of a business license are real estate, broking vehicle rentals, and logistics. 

2. Professional certificates 

These licenses enable entrepreneurs and businesses to operate in specialized fields. Individuals can create a business entity in which they are qualified and have expertise by using this business license. A professional license is needed for a variety of occupations, such as computer graphic design, repair, medical services, publishing, printing, beauty salons, and consulting firms. 

3. Industrial license 

It takes these kinds of permits to start an industrial or manufacturing business in the United Arab Emirates. With the use of this license, entrepreneurs can assemble and process domestic or foreign goods utilizing raw materials. 

An industrial license is required for business owners wishing to establish an LLC in Dubai for the following business activities: textiles, food, fuel, paper, metals, machinery, and engines. 

4. Agriculture license 

License for agriculture must be obtained by business owners engaged in cultivation activities. Such as trading pesticides, harvesting crops, erecting greenhouses, and so forth. 

How can the Flyingcolour business setup help? 

Starting an LLC company in Dubai is a complex process. To keep things running smoothly, you must also abide by every rule and regulation. Therefore, seeking legal advice is essential if you want to comprehend regulations, put appropriate work procedures in place, set aside money for running expenses, and be acceptable to shifting tax laws. 

Choose Flyingcolour business setup, because we have a group of expert professionals who have extensive industry experience and a global presence. We can assist our clients in launching their enterprises with simplicity and maintaining compliance with all legal requirements. Our company formation services help you with getting an LLC license in Dubai with ease. 

FAQs 

1. Can foreigners start an LLC company in Dubai?

Certainly! It is possible for a foreigner to start an LLC in Dubai. 

2. How much does it cost to set up an LLC in Dubai?

The cost of forming an LLC in Dubai may vary based on the kind of business operations you decide to carry out. 

3. Are there any specific restrictions on foreign ownership in an LLC company in Dubai?

A new change presented by the UAE grants foreign investors 100% control; formerly, a local shareholder had to control the majority of the holdings. Foreign investors, however, have to abide by the rules set down by the UAE cabinet. 

4. What does LLC stand for in the UAE?

In the United Arab Emirates, LLC stands for “ Limited Liability Company,” a well-liked corporate form in which shareholders' liability is capped at the value of their stock. 

5. How do you register an LLC company in Dubai?

To form an LLC firm in Dubai, draft your company’s articles of association and get them notarized. To effectively obtain a business license, submit all necessary paperwork and application forms to the DED.