Limited liability companies are the most popular types of business entities registered because this is the only option granting them maximum ownership. Dubai limited liability companies allow foreign citizens to have 100% ownership in the firm, as such regulation was introduced in 2019. Dubai LLC company registration in 2022 is quite simple requiring a few steps to be completed. Another advantage of the Dubai limited liability company is that it can be registered for any commercial purpose.
With vast experience in LLC company formation in Dubai, our local consultants can help foreign investors register limited liability companies in this Emirate. They can rely on us for the preparation and submission of the documents needed to register the limited liability company with the Dubai Companies Register.
Table of Contents
Requirements to register a Dubai limited liability company
Besides the shareholding structure, there are other requirements to set up a limited liability company in Dubai. Among these, the company must have at least two shareholders and a maximum of 50. There are no minimum share capital requirements to register a limited liability company in Dubai, except for the sufficient capital test enabled by the Department of Economic Development (DED). In this case, DED decides if the capital subscribed by the founders is sufficient for the undertakings they intend. Another requirement for a Dubai limited liability company is the managerial ones. Under the Dubai Company Act, the company must have between one and five managers.
Our company registration agents in Dubai will offer you information about the new Commercial Code.
Steps to register a limited liability company in Dubai
There are five steps to follow when registering a limited liability company in Dubai. These are:
- the reservation of the company with the Department of Economic Development,
- drafting and notarizing the company’s Memorandum and Articles of Association,
- submit the documents and business license application form with the Department of Economic Development,
- registration with the Dubai Commercial Register.
Once the company is incorporated, it must also register its employees with the Ministry of Labor and General Authority for Pension and Social Security.
We invite you to see our scheme on the LLC company formation in Dubai:
The uses of a limited liability company in Dubai
The limited liability company is a very versatile business form, foreign investors being allowed to use it for various purposes. The Dubai limited liability company can take one of the following forms:
- that of an onshore private limited liability company used for commercial purposes within Dubai;
- that of an offshore company which is registered in Dubai for trading activities outside the Emirate;
- that of a public company – joint stock companies are also registered as limited liability companies in Dubai;
- that of a free zone company – the registration requirements of a free zone limited liability company depends on the free zone in which it is incorporated;
- that of a subsidiary company – foreign companies can set up subsidiaries under the form of Dubai limited liability companies.
Apart from these, shelf or ready-made companies in Dubai are usually registered as limited liability companies. The limited liability company can also be used for creating a joint venture in Dubai.
If you are interested in setting up a limited liability company in 2022 and need assistance, you can rely on us for complete company registration services in Dubai. You can also watch the following video presentation we have prepared:
The advantages of a Dubai limited liability company
Setting up a limited liability company in Dubai comes with various advantages, especially for foreign investors. Among these, we mention the following:
- it has correspondents in most countries in the world, therefore it is a popular business form;
- it offers access to all industries in Dubai and the UAE, for those interested in starting a business here;
- any type of business license can be obtained by registering a limited liability company;
- when setup in a Dubai free zone, the limited liability company will offer full ownership to a foreign investor;
- there are no share capital requirements related to opening an onshore limited liability company;
- it is easy to register and to open a local bank account for, however, a local agent must be appointed for the incorporation procedure.
Among the licenses which can be obtained with the help of a limited liability company in Dubai, the trading, industrial, and commercial licenses are the most important. Dubai free zone limited liability companies can also obtain licenses related to the specific activities developed in that free zone.
If you want to open a company in Dubai and decide on a limited liability one, our local agents can help you set it up in mainland Dubai or any of its free zones.
Taxation of a limited liability company in Dubai
The Dubai limited liability company offers various tax advantages. For example, there are no corporate taxes imposed on Dubai companies registered in most industries, apart from the oil and petroleum ones. However, a recent change in the tax legislation introduced the value added tax, which is levied at a very low rate. The VAT in Dubai is 5%.
Apart from this tax, the Dubai limited liability company offers various advantages, among which the free repatriation of profits when established by foreign investors and falling under the UAE’s double tax treaties.
Should you have any questions related to the taxation of limited liability companies, our Dubai company formation advisors can answer them. We also offer accounting services to foreign investors owning limited liability companies in Dubai.
How to open an LLC in UAE
If UAE is on your list of future business destinations, then a limited liability company might serve your interests. According to recent legislation modifications, one can open an LLC in UAE with full ownership in the country’s free trade zones, mainland, and offshore jurisdictions. There are no complicated procedures, however, it is suggested to verify the special licenses and permits required. The Articles of Association, the name reservation with the Department of Economic Development, licenses and permits application, plus the payment of registration fees are a few of the essential steps for opening an LLC in UAE in 2022.
We remind you that you can benefit from full assistance and guidance if you decide on working with our company incorporation agents in Dubai, regardless of the city in which you want to develop your business ideas. You can ask for a free case evaluation or better yet, send us your requests and tell us more about the activities you wish to develop in UAE.
FAQ on the Dubai limited liability company
The limited liability company is one of the most usual business forms employed by both local and foreign investors in Dubai, however, there are many questions related to it, especially coming from foreign entrepreneurs. Below, our company registration agents in Dubai have answered some of these questions:
1. What is the minimum number of shareholders for a limited liability company in Dubai? What about in a Dubai free zone?
The minimum number of shareholders for a limited liability company in Dubai is 2, while in a free zone a single shareholder is allowed.
2. How much does it take to register a limited liability company in Dubai?
The registration of a Dubai limited liability company takes a few days to complete.
3. Is it complicated to register a limited liability company if I am a foreigner?
No, the Dubai company formation of this type of company is quite simple, even if you are a foreigner.
4. How much does it cost to register a limited liability company in Dubai?
The company registration fee of a limited liability company in Dubai depends on the industry you want to open it in and whether the company is set up in a free zone or not.
5. Do I need the services of a local agent to register a limited liability company?
This requirement applies to foreign investors who want to open a limited liability company in Dubai. Our agents offer such services.
6. Is there a corporate tax imposed on LLC in Dubai?
As it is known, UAE has an appealing tax system that attracts numerous entrepreneurs each year. There is no corporate tax imposed for limited liability companies in Dubai, a major advantage for international investors. More about LLC company formation in Dubai can be discussed with our specialists.
7. Is the process of Dubai LLC company registration hard?
The simplified formalities for LLC company formation in Dubai is another appealing advantage for businessmen. Once the special licenses and permits are obtained, the activities in Dubai can start right away.
8. What is the proper business form for a startup in UAE?
The limited liability company is the most popular business structure available in UAE. You can easily manage your business by adopting this kind of entity. More about how to open an LLC in UAE can be offered by our experts in the field.
9. Can I ask for assistance with tax registration in Dubai?
Yes, you can be helped by one of our company formation agents in Dubai when registering for tax purposes in UAE. We have experts in the field who can tell you more about the tax system and the requirements in this direction.
10. Do I have full ownership of an LLC in UAE?
If you want to open an LLC in UAE, you can direct your attention to Dubai’s free trade zones. Here, you can benefit from great taxation and full ownership of your firm. Feel free to address your questions to one of our specialists in company incorporation in Dubai.
Making investments in Dubai
The UAE is a top destination when it comes to foreign investment, and Dubai is the most prolific in this regard. Business opportunities are vast in the UAE, and foreigners already know what the advantages of this country are. A stable and profitable business climate, largely sustained by the huge support provided by the authorities in various forms and sectors, a well-developed infrastructure, openness to major international markets, and numerous business opportunities in the field of finance are just some of the benefits offered for foreign investors in the UAE. Here are some data and statistical figures that largely emphasize the economic direction of the UAE:
- Around USD 154 billion was the total FDI for the UAE in 2019.
- The value of greenfield investments in the UAE was approximately USD 14 billion in the same year.
- In 2020, several business sectors were approved for foreigners who want to benefit from 100% ownership. These include renewable energy, construction, manufacturing, agriculture, healthcare, educational activities, ICT, hospitality, and food services.
- According to the 2020 Doing Business report, the UAE ranked 16th out of 190 world economies in terms of business simplification and conditions.
- The UAE has received the most foreign investment, according to data for 2019 regarding West Asia. Most of the FDIs were absorbed by the oil & gas sector, the most prolific in the country.
More about Dubai LLC company registration can be discussed with our agents.
Why work with our specialists
Although opening a business in the UAE is a fairly simple process, foreign investors may be hindered by certain formalities. Here the specialized help of our team of company formation agents in Dubai, with experience in this area, can intervene. Foreign businessmen who want to register a company in the UAE and especially in Dubai can benefit from full support and professionalism from us. We are attentive to the needs of our clients and we rely on transparency and efficiency when we start a collaboration.
Before company registration, the applicants must also verify the fees related to all the steps of the procedure. For any information or support in Dubai LLC company registration, you can also contact our Dubai company incorporation agents.