The Dubai Department of Economic Development (DED) issued around twenty-one new business licenses in the year 2016. It was noted that among these new businesses one of the most popular company types among foreign investors, tried and trusted is the Limited Liability Company or LLC formation in Dubai. An LLC structure in the UAE is the same as in any other country. It is an independent legal entity that can be owned by up to fifty shareholders. However, there are numerous other good reasons why LLC formation in Dubai is popular throughout the world. Not only is the process of LLC formation in Dubai both straightforward and affordable, but also allows entrepreneurs to directly trade with the local market in the city.
There are many other significant advantages of LLC formation in Dubai and you will come across a few of them as you read further.
What are the Major Advantages of LLC Formation in Dubai?
If you are looking forward to getting started and still confused between different options to choose for your business startup, here are 7 major advantages why LLC formation in Dubai is the best onshore option:
1. Affordable Formation
One of the prime reasons for such successful growth of the LLCs in Dubai is its cost-efficient setup process. The initial setup cost of LLC Formation in Dubai falls between AED 24,000 – AED 27,000. This price depends upon the nature, size, and type of business activities to be conducted. Depending on the nature and size of your business, a Limited Liability Company may or may not have capital restrictions.
2. Allowance for Multiple Visa Application
LLC formation in Dubai gives you the freedom to legally own multiple visas. However, the DED has a rule in place according to which you must own 100sq feet of office for each visa. The larger the office space the more visas you can acquire.
3. Freedom to choose desired Business Location
As an LLC owner, you are eligible to choose any legally verified location for the establishment of your company. Moreover, it has the added benefit of providing you with workplaces and land throughout the UAE on rent/lease without worrying about any legal procedures along the way.
4. Opens a Broad Range of Business Activities
Entrepreneurs can choose amongst 2,000+ business activities permitted bу the Department of Economic Development (DED). A license to trade in respective business activity is mandatory for all business owners. Business activities like manufacturing, agriculture, finance, equipment rental, photography, commercial and industrial activities, etc. are all covered by the DED Dubai.
5. Fast Setup Procedure
If you think the process of LLC formation in Dubai is lengthy and can take multiple days to complete, you are mistaken. Note that it only takes about 90 minutes to complete the registration process for your company. Such a convenient startup procedure is one of the contributing factors for LLC being one of the most preferred legal entities in Dubai.
6. Ease of Expanding your Business
A Limited Liability Company formation in Dubai offers you great exposure in the local as well as international market. The quality of life it provides to business owners has increased the reputation of LLC formation in Dubai around the world. Being an LLC owner, you have the flexibility to establish more than one branch in the country. Moreover, it allows you to directly trade with the local markets and collaborate with other trading companies within and outside of the UAE.
7. Limited Liability Protection
The biggest reason behind the fame of LLC formation in Dubai is that they provide, 100% personal protection from liabilities, to its owners. An LLC is considered to be a separate legal entity; thus, no shareholder is legally responsible for the losses brought down by the LLC. The owner of an LLC is only responsible for the initial capital he/she invests in the business.
Process of LLC Formation in Dubai
If you are willing to form an LLC company in Dubai, you should be well acquainted with the steps involved in the LLC formation in Dubai. To make it easy for you the process is broken down into simple steps:
Step 1: Choose a legal structure for your company that complies with the rules and regulations stated by the government.
Step 2: Choose a trading name for your company and get it verified by the DED authority.
Step 3: Select the types of activities you want to conduct under your company’s name.
Step 4: Choose a location for your LLC and get your Ejari code and tenancy contract.
Step 5: Collect all the required documents and submit them to the Department of Economic Development (DED), Dubai.
Step 6: Register for a commercial license and collect it once issued by the DED.
Step 7: Complete the MOA and LSA agreement with the help of a local sponsor.
Step 8: You must complete the necessary payments within 24 hours of collecting your license.
After completing all the steps above you will receive your LLC License and company incorporation documents within 5-6 working days.
Connect With Shuraa
Forming an LLC in Dubai will give you access to a wider market within the country and outside too. Although the company structure choice depends on the type of business you want to run, it is always better to take an opinion from company formation experts. Business consultants at Shuraa Business Setup can guide you for the same and help you prepare a proper plan for your LLC company formation in Dubai. We can walk you through the pros and cons of LLC formation and help you select the best suitable business activities. All you have to do is contact us and we will assist you throughout the registration process and get your LLC license for you at a low cost.
