Dubai LLC

A Dubai limited liability company (LLC) is an excellent vehicle for entrepreneurs doing business within Dubai, the UAE and internationally. The following information outlines key characteristics of an LLC in Dubai, legal requirements, advantages and disadvantages of incorporating this form of business entity in Dubai.

1.

Requires a minimum of 2 shareholders, maximum of 50.

2.

Liability is limited to the capital that each shareholder has invested in the company.

3.

Foreign ownership cannot exceed 49%, so a Dubai LLC requires 51% ownership from a UAE citizen.

1.

A Dubai LLC offers unrivalled access to Dubai and the wider UAE economy. Through a Dubai LLC, international entrepreneurs obtain Trade Licenses from the Dubai government. There are few restrictions on the activities of a Dubai LLC, and it is possible to obtain a license for all activities with the exception of i) banking ii) insurance and iii) investment activities.

Through a Dubai LLC, investors obtain a strong physical presence in Dubai. Although cost effective office space is hard to find in Dubai Healy Consultants offers solutions to meet every budget and specifications, including our Dubai virtual office service.

3.

Incorporating a Dubai LLC now faces no specific minimum capital requirements, after this formal requirement was abolished in the UAE. Companies may or may not be subject to minimum capital requirements, dependent on the size, nature and goals of the business.

4.

It is easy to open global corporate bank accounts following Dubai LLC set up. Healy Consultants works with internationally-recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

1.

In addition to government incorporation fees, investors setting up a Dubai LLC are required to pay to the government 5% of the annual lease rent of the office premises (and at the time of annual renewal an additional 5% of the annual lease rent for the manager's residence also becomes payable).

2.

Forming a Dubai LLC is difficult. A Dubai LLC requires a minimum 51% shareholding by UAE nationals. However, profit and loss distribution can be mutually agreed, and the UAE national need not have a management role in the Dubai LLC. Healy Consultants will provide a local sponsor to fulfil this statutory requirement if required.

3.

If the 49% shareholder in the LLC is a foreign corporate entity, the corporate documents of the foreign company (e g Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution resolving to participate in a Dubai LLC and Power of Attorney in favour of the Dubai LLC manager) must be notarised and legalised in the country of incorporation of the parent company. In addition, these documents must then be legalised at the Ministry of Foreign Affairs in Dubai and then translated into Arabic. These requirements contribute to the complexity and costs of setting up a Dubai LLC.

Following Dubai LLC incorporation, a register of shareholders and directors is available for public viewing.

A Dubai LLC is required to annually submit audited financial statements to the Dubai government.

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