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    LLC Company Requirements UAE [2024 Guide]

    Posted by admin Posted in Business Setup

    Jan 3 2024 at 3:48am

    llc company requirements in UAE

    In this article, we delve into the requirements for forming a Limited Liability Company (LLC) in the UAE. We’ll explore the benefits, costs, necessary steps, required documents, and special permissions needed for certain activities.

    By the end of this piece, you will have a comprehensive understanding of the process and requirements for establishing an LLC in the UAE, empowering you to make informed decisions for your business venture.

    Benefits of starting an LLC in UAE

    Quick setup process

    Forming an LLC in the UAE is a quick and straightforward process. You can register your business with the Department of Economic Development (DED) in just 90 minutes. Typically, it takes four to five days to set up. However, various issues can delay the procedure, including government certifications.

    Tax benefits

    One of the significant advantages of forming an LLC in the UAE is the favourable tax environment. Compared to many other countries, taxes in the UAE are very low. This makes it an attractive option for entrepreneurs and businesses looking to maximize their profits.

    Range of business activities

    With an LLC in the UAE, you have the freedom to engage in a wide range of business activities. You can apply for a DED license to engage in any of the 2,000 allowed economic activities, from agriculture to travel. This flexibility allows businesses to diversify and expand their operations.

    100% foreign ownership

    In the UAE, several company license categories no longer require a UAE National Sponsor. This allows 100% foreign ownership in non-free zone enterprises, making it an attractive option for foreign investors and businesses.

    LLC company formation cost in UAE

    General cost range

    Generally, the cost of setting up an LLC in Dubai ranges from AED 20,000 to 30,000. This range is an estimate and the actual cost can vary based on the specific requirements of your business.

    Factors affecting the cost

    The fees associated with setting up an LLC can vary depending on the industry type and services required. For instance, certain industries may require additional licenses or permissions, which can add to the overall cost. It’s also important to consider the cost of ongoing compliance and reporting requirements.

    Steps to open an LLC in UAE

    Choosing a name

    The first step in forming an LLC is choosing a name for your company. This name should reflect the nature of your business and comply with the regulations set by the DED.

    Selecting a location

    The next step is selecting a location for your business. When choosing a location, factors such as accessibility to your market, suitability to the nature of your business, and transit availability should be considered.

    Selecting a business activity

    Choosing the correct business activity is critical for any company registration in Dubai. Your chosen activity should align with your business goals and comply with the regulations set by the DED.

    Submitting documents to the DED

    Once you have chosen a name, location, and business activity, the next step is to submit all necessary documentation to the DED for approval. This includes your business plan, proof of financial resources, and any other required documents.

    Approval process for activities

    If your intended business engages in specific activities, you may need to obtain approval from other necessary authorities. This could include health and safety inspections, environmental impact assessments, or other industry-specific approvals.

    Obtaining licenses

    Once the necessary authorities have approved your business activity, you can proceed with obtaining the necessary licenses and permits. This may include a trade license, a certificate of incorporation, and other necessary legal documents.

    Documents required to start an LLC in UAE

    Passport copy of the investor

    The first requirement is a copy of the investor’s passport. This document is used to verify the identity of the investor and is a standard requirement for most business registrations.

    Passport copy of the local sponsor

    If your LLC has a local sponsor, a copy of their passport is also required. This helps to verify the identity of the sponsor and their involvement in the business.

    No Objection Certificate

    If the shareholder is currently working in a UAE company, a No Objection Certificate from their employer is required. This certificate confirms that the employer has no objections to the employee starting a business.

    Copy of Emirates ID

    A copy of the Emirates ID of the investor and the local sponsor (if applicable) is also required. This is another form of identification required by the DED.

    Application form of registration from DED

    An application form for registration from the DED is also needed. This form includes details about the business, including its name, location, and intended activities.

    Attested tenancy contract for the office premises

    If your LLC is to have a physical office location, an attested tenancy contract for the office premises is required. This document confirms the location of your business and that you have the right to use the premises.

    Attested Memorandum of Association from public notary

    Finally, an attested Memorandum of Association from a public notary is required. This document outlines the relationship between the shareholders of the LLC and is a key part of the registration process.

    Special permissions and licenses for certain activities

    Tourism activities

    If your LLC is involved in tourism activities, you may need to obtain special permissions or licenses. These could include a tourism license, permits for specific tourist activities, or other related permissions.

    Health care activities

    Health care activities also require special permissions and licenses. These could include a health care facility license, professional licenses for health care practitioners, or other related permissions.

    Architecture and engineering consulting firm

    If your LLC is an architecture and engineering consulting firm, you may need to obtain special permissions or licenses. These could include a professional engineering license, permits for specific engineering activities, or other related permissions.

    Shipping, freight forwarding, and logistics activities

    Shipping, freight forwarding, and logistics activities also require special permissions and licenses. These could include a shipping license, permits for specific shipping activities, or other related permissions.

    Educational services

    If your LLC is involved in educational services, you may need to obtain special permissions or licenses. These could include an educational institution license, professional licenses for educators, or other related permissions.

    How Worldwide Formations can help

    When it comes to setting up an LLC in the UAE, having the right support is invaluable. Worldwide Formations, a leading corporate advisory service provider established in 2008, offers comprehensive solutions tailored to your unique needs.

    As a trusted provider to clients from over 90 countries, Worldwide Formations has the expertise and experience to guide you through the process of setting up your venture in the UAE. As an officially registered agent across major UAE free zones, we can support company setups, mainland and offshore structures and offer visa and second citizenship support.

    Our services go beyond just licensing and setup. We connect our global client base of over 10,000 to a wide range of B2B solutions through our network of esteemed partners. This includes services in accounting, taxation, financial audits, and more, allowing you to focus on what matters most – growing your business.

    With Worldwide Formations, navigating the business setup landscape in Dubai becomes a hassle-free experience. Our dedicated team of experts is ready to help you make the most of the opportunities the UAE’s thriving business sector offers. Whether you’re looking to start a new venture or expand an existing one, trust Worldwide Formations to provide the support you need to succeed.

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