LLC company formation in Dubai and the UAE (2021 guide)

What is the need for an LLC company formation in Dubai and UAE?

The Middle East has a number of countries that offer incorporation services. One such country is the United Arab Emirates (UAE). The UAE offers great benefits to business owners, including excellent corporate governance regulations and laws, no restrictions on foreign ownership, low costs for starting up companies as well as easy access to international markets like Europe and Asia. However, there are some requirements you should be aware of when it comes to forming your own LLC company in Dubai or the UAE. When looking at these requirements you will find that they are not difficult or costly to meet! 

In this blog post, I’ll cover: what an LLC company formation in Dubai entails; how much it costs. 

What is an LLC company?

An LLC company provides business owners with the benefit of limited liability. When you register your business as an LLC, investors are normally not liable for the debts or obligations of the LLC. Therefore, if one of their partners causes harm to another person or entity, they may not be held responsible for this harm.

How does an LLC work?

The internal structure of an LLC depends on the company’s members (owners) and the respective percentage shares they hold. A manager must be appointed by the members to manage the daily operations of the business and its staff. Laws regarding LLCs are more flexible than for other corporate forms, meaning that different types of businesses can choose to incorporate as an LLC. For example, a company that has a single owner could be set up as an LLC; or it may have multiple members and managers. It is important to note also that foreign entities are allowed to create LLCs in the UAE. 

The benefits of incorporating as an LLC: You will gain tax benefits, especially if the business has been operating for more than a year. You will not have to pay taxes on income that is considered free from tax (passive). Your liability will be limited in case of damage or bankruptcy. The rules are flexible, meaning you can tailor your company to suit your needs.

How much does an LLC cost?

LLC companies in the UAE are not more expensive to register than other corporate entities. The price of registering an LLC is determined by two factors: the share capital or initial investment cost, and the annual company fee.

The costs will vary depending on where you choose to register your business. Costs for setting up an LLC in Dubai can be from as little as 6,000 dirhams (2,100 USD) in some areas of Dubai down to as much as 100,000 UAE Dirhams (37,225 USD) if business registration is carried out at the Emirates Trade Center (ETC). The costs will range depending on whether a company registers with one or more partners. The Emirates Trade Center (ETC) is the most expensive area to register an LLC. The location of your business will determine how much it costs. However, there is no need to pay top dollar to register your business as an LLC! You can register in one of the other areas for as little as 2,100 USD. 

How long does LLC company formation take?

The registration of a new business in the UAE normally takes up to two weeks. Once you fill out the form, it will need to be sent back to the relevant companies before they can grant your LLC status. In addition, you must also have at least one director on board who is 21 years or older and a bank account in the UAE. It is possible to register your LLC quicker if you are a resident of the UAE, but it will still take more than a week for registration to be finalized. 

What will you need to do after establishing your company?

Legal requirements are minimal for an LLC business. Once it has been registered and settled, you will need to register with the relevant company, and then apply for a trade license. The final step is to register your LLC business name with the Ministry of Economy in Dubai. This can be done through their portal at https://dubaibusinessadvisors.com/

How can we help?

We have over 10 years of experience forming companies in the UAE and will be able to help you get your LLC up and running. With our team of highly qualified lawyers, we can offer you a comprehensive service at an affordable cost, so if you are interested in forming a limited liability company in Dubai or the other emirates please contact us below.

Conclusion

The UAE is a great choice for starting your company whether you’re looking to launch an international business or just want something simple and low-cost. You have access to everything from excellent corporate governance regulations and laws, no restrictions on foreign ownership, low costs for starting up companies as well as easy access to international markets like Europe and Asia. However, there are some requirements you should be aware of when it comes to forming your own LLC company in Dubai. If you need help with the process or would like more information about what opening a company in the Middle East entails then please get in touch! We offer free consultations so we can answer any questions you may have before deciding if this is the right option for you!