LLC Company formation in Dubai is the most important step included in the formation of business in Dubai, UAE. It is a legal formality and when business is discussed then laws, rules and regulations are the things which are to be discussed first. Seven types of business entities, according to the Federal Law, can be established in Dubai and rest six emirates of UAE. LLC is one of these seven entities preferred by the investors the most who are planning to do a business venture in Dubai, UAE.
Before venturing, it is important to have a precise knowledge about it. There are few easy steps involved in understanding these governing rules. Generally those who are not so aware of these rules, free zone registration help them in understanding them. Minimum two and maximum fifty shareholders can formed LLC or Limited Liability Company. In the businesses capital, these shareholders have limited liability to their shares.
If you are also looking for establishing your LLC then you must be aware of all the steps that are involved in the process. In all, there are six steps which are required to be performed. Here they are:
Very firstly a commercial name should be chosen. Under this name only the company will be performing all its business functions. This name is supposed to be approved by issuing license by the Licensing Department of the Dubai Economic Department.
The company's communication association must be drained up. Then, attested it in the Dubai Courts by a Notary Public.
Approval of the Dubai Economic Department must be sought along with the entry (which must be applied for) in the Commercial Register.
After getting the approval from Dubai Economic Department, the company's formal entry should be made in the Commercial Register. After that, the Memorandum of Association of the company's publication in the Bulletin of Economy and Commerce Ministry.
After that, the license is issued by the Dubai Economic Department to the company.
Lastly, the registration formalities of the company are done with the Chamber of Commerce and Industry of Dubai.
Foreign investors can have the hold over the shares not exceeding 49%, so that; the capital which is shared will have different profit and loss ratio.
It is one of the most popular methods of establishing the commercial company in Dubai, UAE.
LLC in UAE offers a direct admittance to the wider UAE economy.
It does not ask for a minimum amount of required capital.
The investors are allowed to become the partner in the company.
The investors after given the investor visa are permitted to enjoy the grand status of investors in the Dubai, UAE along with their families.
The investors have option to start a branch.
Without being getting into the daily interference with the local partner, the investors can now manage the business.
All the assets and capital will be in the name of company instead of the local national partner' name.
Apart from so many benefits, there are several restrictions on LLC activities. It is easy to open the global corporate bank accounts. Those who are planning for establishing LLC Company in Dubai must be aware of some of its disadvantages: plenty of individuals are not aware of the management structure of LLC that it does not require to have the Board of Directors, dissimilar to the other types of business associations.
Because of this, the carry out of business dealings with LLC may have some reservations. This can also be cause for LLC having trouble heaving its capital because investors feel more comfortable to place their funds in business form as they understand it much better.
In accomplishing the LLC Company formation in Dubai it takes 8 to 15 working days, surmised from the date of depositing the documents.