LLC Company Formation in Dubai
How to start an LLC company in Dubai?
A Limited Liability Company (LLC) in Dubai is a legal entity, which is registered under the Dubai economic department (DED Dubai), Investors prefer Dubai for its excellent location, besides it’s one of the Fastest Growing Markets in the World.
If you decided to start your LLC company formation in Dubai, you should know what are the steps, getting a trade license in Dubai can be a complicated task and it takes time, but with the right guidance your LLC company formation can be a lot easier, you can be sure that your LLC company will be licensed in a few days.
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To start the process, all the documents should be ready:
1. first, we have to select the activity, according to the Dubai economic department, each trade license in Dubai can hold a specific group of activities.
2.Next, to start the official company formation, we should issue the initial approval and get the trade name from Dubai economic department (DED)
3. If the LLC license activity requires a special approval, then we have to get it before signing any agreement, this is to avoid any problems during the formation process
4. Also, we must prepare the MOA and all the partners should be present to sign it in front of the Notary Public, and if one partner can’t come to sign, then he can give a power of attorney to any person, and that person can sign on his behalf
5. Additionally, we have to get the tenancy contract, then we should submit the papers to DED, and finally, you will get your Trade License in Dubai.
The most common LLC license in Dubai is the general trading license, investors prefer it because it includes all trading activities, but not all of them, only the activities without special approvals, the general trading license allows you to do import and export also, although the cost of the general trading license is more expensive than the other activities.
There are many legal forms in Dubai the most common are:
1. Sole Establishment:
The owner of a Sole establishment should be a person, not a company, yet, this person will own 100% of the business and can keep all the profits, but If the owner is a National of a country other than the UAE or GCC, they need a Local Service Agent (LSA), and a corporate body cannot own a sole establishment.
2. Civil Company:
A Civil Company is a business partnership for professionals, the owners of a Civil Company can be of any nationality, If the owner is a National of a country other than the UAE or GCC, they need a Local Service Agent (LSA).
3. Limited Liability Company (LLC):
This is the most common legal form in Dubai, the LLC company must have between 2-50 shareholders, each of whom is liable only to the extent of his or her share in the capital, LLC companies can have any industrial, commercial, professional or tourism activity, UAE Nationals must own at least 51% of LLC companies and GCC nationals can be the owners also.
4. Branch of a Foreign Company:
A branch of a foreign company can practice professional activities, some commercial or industrial activities, the Ministry of Economy should give the approval for doing commercial and industrial activities, the parent company will own the branch, operate under the same name, and do the same business as the main firm, to open a branch in Dubai, it also requires a Local Agent (LCA).
5. Representative Office:
A Rep. Office for Commercial Activities is not a business structure in its own, but usually, it is a business activity that a branch can conduct, which allow promoting the parent company’s business, but not do operations, it also requires a Local Agent (LCA).