LLC company formation in the UAE is one of the most popular choices among entrepreneurs and investors from various countries. One of the reasons being, it offers a hundred percent ownership of the company. But there are other benefits of an LLC company formation in the UAE like various tax benefits, excellent infrastructure, ease of business setup, and many more.
If you are interested in company formation in the UAE, you should read ahead. You will get all the information related to LLC company formation in the UAE, its cost, and required documents. But first, let’s take a look at the major advantages of an LLC company formation in the UAE.
What Are The Major Benefits of an LLC company in The UAE?
There are various reasons why LLC company formation is one of the most popular choices among entrepreneurs. It offers numerous benefits, some of which are listed below:
1. There can be up to fifty shareholders.
2. It allows 100% expat ownership on certain activities according to recent laws.
3. There is no need to collaborate with a local service agent or a national sponsor to form an LLC in the UAE mainland.
4. A large pool of business activities to choose from.
5. Eligibility to sponsor your family.
6. Trade in local markets as well as globally.
7. Easily open a corporate bank account with increased credibility.
8. Hire more staff through the visa quota.
9. There is no requirement of fixed minimum capital.
10. The liability of the shareholders is limited to the shares they own in the company.
The process of LLC formation in the UAE is straightforward to follow. You can go through the steps given below to complete the registration process of an LLC formation in the UAE.
1. Partner with an Emirati local. He/she will act as a local sponsor.
2. Select a suitable name for your LLC in the UAE. Make sure not to use any foul language and no mention of any religious word in the name. Get your trade name registration certificate for future reference.
3. Choose from the list of business activities provided by the DED. This depends on the size and the nature of your business. Note that you are not allowed to conduct any other activities besides the ones mentioned in the form.
4. Rent office space in a suitable location. Choose a location from where you can easily reach your target audience. Furthermore, register it online with Ejari to secure your tenancy contract and unique Ejari number for future references.
5. Submit all the necessary documents and obtain an initial approval certificate from the DED. Once you get the initial approval, you can apply for a trading license.
6. Draft and sign MoA and AoA with all the stakeholders. The MoA must include the name of your company, physical address of your office, name of the shareholders along with their nationalities and residential address.
7. Sign a contract of establishment in presence of a notary.
8. Open a local bank account and obtain a certificate for verification of the share capital deposit.
9. Complete all the paperwork and apply for a commercial license. Once you submit all the documents along with the application form, they will undergo a thorough inspection. If all is in place, the DED will send you a confirmation mail.
10. Finally, the DED will issue your commercial license. Remember to make the payment through the payment voucher shared by the DED via email. It is important to pay the required fee within 24 hours of the license issuance.
The cost of an LLC company formation in the UAE can vary depending upon the size, nature, and location of the company. Mostly, there are no hidden costs involved in LLC company formation. An LLC formation in the UAE can cost you anywhere between AED 24,000 to AED 27,000. This includes:
1. Trade name registration fee.
2. Initial approval fee.
3. Local Service Agent fee
4. Office rent and Ejari registration fee.
5. Commercial license fee.
6. Chamber of Commerce membership fee.
7. 5% of the office rent to be paid to the government.
8. Waste material fee to be paid to the Dubai municipality.
Now that you have all the necessary information with regards to LLC company formation in the UAE. you can start planning for one of yours. Though the process is simple to follow it is always better to consult professionals to avoid any mistakes. You can seek help from the business consultants at Shuraa Business Setup. We will guide you throughout the registration process, assist you in the paperwork and get your commercial license at a low cost. You just need to call us, let us know your requirements and leave the rest to us.
Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message on +971 50 777 5554. You can also write to us at email@example.com.