What is an LLC company in Dubai?
Companies in Dubai have various legal structures. One of the most popular legal structures which is also a suitable option for Iranians, is the Limited Liability Company or LLC (Limited Liability Company). Compared to other types of companies in Dubai, it has a more flexible structure that combines the advantages of joint-stock companies (corporationand partnerships (partnership). This company structure guarantees limited liability for the owners and its management is easier with simpler tax laws and regulations.
LLC companies usually have their own articles of association and can have from 2 to 50 members holding shares. None of the partners are personally liable for damages, and each shareholder's liability depends on the amount of their shares. For more information about Types of companies in DubaiYou can take a look at the article, Company registration in Dubai Have it.
The most common type of business in the UAE is a Limited Liability Company (LLC). It comprises a minimum of two and a maximum of fifty shareholders, each of whom is only liable for their part of its capital. An LLC can trade anywhere in the UAE and the Gulf Cooperation Council (GCC).
Persian TranslationThe most common type of business in the United Arab Emirates is the Limited Liability Company (LLC). This type of company has a minimum of two and a maximum of fifty shareholders, each of whom is only liable up to the amount of their share in the company's capital. An LLC can operate throughout the UAE and the Gulf Cooperation Council (GCC).
What are the benefits of registering an LLC in Dubai?
As mentioned earlier in this article, registering a Limited Liability Company in Dubai can offer many advantages for business owners. Among the most important benefits of these companies, the following should undoubtedly be highlighted:
Setting it up is quick
Starting a is the Limited Liability Company It is very simple and can also be done in the shortest possible time. You can register your company at the Dubai Economic Development Department (DED) which can be completed in just 1 hour and 30 minutes The rest of the company registration process takes about 5 days and at most 2 weeks to complete.
It will not be subject to income tax
Setting up a limited liability company within the territory UAE and Dubai is not subject to income tax law.For this reason, it can be said that these companies have no taxes at all. Tax payment is only required when the company’s annual income exceeds 375,000 dirhams and at that time the tax rate is only 9 percent. is.
A wide range of commercial activities
with company registration LLC in Dubai You can choose from more than 2000 different types of business activities as the main activity of the company. From tourism to agricultural and farming services, anything is possible depending on your expertise. You can select the best option from the DED organization list for yourself.
Possibility of 100% ownership without the need for a sponsor
According to the new company registration laws in Dubai, some types of companies no longer require an Emirati partner or sponsor. The Limited Liability Company (LLC) is one of these companies, where foreign investors applying to establish it can have 100% ownership of their company.
What are the Most Important Regulations and Conditions for Registering an LLC in Dubai?
Registering a Limited Liability Company in Dubai involves specific conditions and regulations that you must fully understand before starting and registering your company. These laws and regulations are prerequisites for establishing an LLC, and being aware of and complying with them can greatly improve the company setup process:
- The minimum number of partners in an LLC is 2 and the maximum is 50.
- The company must have at least 1 and at most 5 managers; shareholders can also serve as company managers.
- Registering this type of company does not require initial capital; the company’s Memorandum of Association (MOA) can be registered even with AED 150,000.
- The company name must match the company’s activity and cannot be different from the main business activity.
- Shares of limited liability companies are not transferable and cannot be sold to raise company capital.
- A shareholder can obtain UAE residency only if at least 24% of the company’s shares are registered in their name.
- LLCs in Dubai are required to have a physical office or administrative office.
An Overview of the LLC Registration Process in Dubai
To establish a limited liability company in Dubai, you need to complete the administrative steps correctly and legally. By doing so, you will undoubtedly ensure the success of your company registration and avoid any unwanted issues along the way. The steps can be summarized as follows:
Choosing a Company Name
The first step to registering a company in Dubai is choosing its name. As mentioned, the name must align with the company’s activities. Additionally, it must comply with all relevant regulations. To learn about these rules, you can read the article Company Name Selection Rules in Dubai Read it.
Choosing an Office for the Company
The second step is selecting a location to establish the company. A lease agreement for the office is among the required documents for company registration in Dubai. When choosing an office location, you should consider factors such as company accessibility, whether it is in free zones or the mainland of the UAE, and the suitability of the workspace.
Defining the Company’s Activities
Next, you need to specify the type of activities your company will undertake. At this stage, it is advisable to prepare your business plan and have it ready for subsequent steps. Our experts can assist you in selecting the best activities according to your expertise and market conditions.
Submitting Required Documents
After completing the initial steps, you must prepare and submit the necessary documents to the UAE’s DED (Department of Economic Development). In the next section, we will discuss in detail the documents required for registering an LLC company in Dubai.
Waiting for File Approval
At this stage, you need to wait for your LLC company registration file to be approved by the relevant authorities and the DED. If necessary, you may also need to obtain specific approvals and permits from other competent authorities.
Receiving the Company Registration License
In the final step, you will receive the company registration license from the UAE government. Upon obtaining government approval, you can receive your company’s Memorandum of Association (MOA). Additionally, at this stage, you can also obtain other documents such as the certificate of incorporation, trade license, share certificate, visa, lease contract, and work card.
What documents are required to register an LLC company in Dubai?
In the previous section, we briefly mentioned the documents needed to register an LLC company in Dubai. As we said, setting up this company requires submitting the necessary documents to the DED organization to proceed with the process. Among the documents you will need during the company registration process, we can mention the following:
- Original and copy of the investor's passport
- Original and copy of the local sponsor's passport
- Company registration application form from the DED
- Copy of the company office lease contract
- Approved Memorandum of Association (MOA)
- Business license application form
- Business plan
- Bank statements and receipts
- And other necessary documents introduced by the DED
In general, the initial required documents for registering a company in Dubai are those mentioned above. During the LLC registration process in Dubai, other documents may also be required. Our experts can provide you with further guidance in this regard.
Costs of registering a Limited Liability Company (LLC) in Dubai
Setting up a Limited Liability Company (LLC) in Dubai involves costs that you should plan for before starting the registration process. Below are the main costs related to registration, licensing, renewal, and other services.
| Item | Cost |
|---|---|
| Base cost for LLC company registration | Approximately 20,000 to 30,000 AED |
| Cost of obtaining an LLC company registration license | From 18,500 AED |
| Annual company license renewal fee | Approximately 13,500 AED |
| Cost of choosing a company name | Approximately 2000 AED |
| Visa fee | Approximately 4500 AED |
More details:
- Base cost for LLC company registration: This cost includes all initial expenses for the official registration and setup of the company. The amount may vary depending on specific needs and the type of business activity.
- Fee for obtaining an LLC company registration license: To legally start company operations in Dubai, an official license is required. The cost of this license starts from 18,500 AED and may vary depending on conditions.
- Annual license renewal fee: To continue company operations in Dubai, an annual license renewal is required, with an average cost of about 13,500 AED.
- Company name selection fee: To choose and approve the company name by legal authorities, a fee of approximately 2000 AED must be paid.
- Visa fee: For company owners and employees, the visa fee will be 4500 AED.
Final words
In this article, we discussed registering an LLC company in Dubai, also known as a limited liability company in Dubai. For obtaining a 2-year Dubai residency, living, and profitable business activities in this country, registering a company can undoubtedly be a very suitable option. We covered the relevant conditions and regulations, reviewed the process, and also introduced the required documents and costs. For more information and specialized consultation, you can contact our experts through the communication channels provided.
