With its strategic location, world-class infrastructure and business-friendly environment, the United Arab Emirates (UAE) offers a plethora of opportunities for both local and international businesses. Forming Limited Liability Companies (LLC) in the UAE provides numerous advantages, including 100% foreign ownership in free zones, favourable tax regimes and access to a diverse and dynamic market. This comprehensive guide will walk you through the process of forming an LLC company in the UAE, ensuring you have all the necessary information.
A limited liability company (LLC) is a business structure offering personal liability protection and flexibility in taxes and management. In the UAE, formation of LLC companies is popular among small businesses and entrepreneurs due to their ability to shield owners/shareholders from personal liability for business debts and obligations. Compared to other business structures, an LLC provides greater flexibility in management and taxation. It can be owned by a single person or multiple members and can be used for any legal business set-up purpose. For those looking into LLC company formation in the UAE, understanding these benefits is crucial. The UAE offers a favourable environment for business set-up, making LLC company formation an attractive option. In the UAE, an LLC company can be formed with a minimum of one member and a maximum of fifty shareholders. Each member is liable only for their share of the company’s capital, ensuring full protection from liability under the corporate laws of the respective emirate.
The necessary documents for the formation of an LLC company in the UAE include: ● A copy of the investor's passport ● A No Objection Certificate (NOC), if the shareholder is currently employed by a UAE company. ● A copy of the Emirates ID ● The Department of Economic Development's (DED) registration application form ● An attested tenancy contract for the chosen office premises ● An attested Memorandum of Association (MOA) from a public notary
1) Reserve a trade name: Choose a unique and appropriate trade name for your LLC and reserve it with the Department of Economic Development (DED). 2) Draft the Memorandum of Association (MOA): The MOA outlines the company's objectives, shareholding structure and key business details. This document is essential for company registration. 3) Obtain initial approval: Submit the necessary documents, including the MOA, to the DED for initial approval. This step checks the business concept and compliance with local regulations. 4) Apply for a business licence: Apply for the required business licence, which will depend on your business set-up activities and location in the UAE. 5) Register with the DED: Submit all necessary documents and pay the fees to register your LLC with the DED. This involves obtaining a trade licence and other permits. 6) Get an establishment card: Obtain an establishment card from the UAE Ministry of Labour, necessary for hiring employees. 7) Secure immigration and labour approvals: Apply for the required visas and work permits for your employees and shareholders. 8) Open a bank account: Open a corporate bank account in the UAE for your LLC to manage financial transactions. 9) Complete commercial registration: Upon the completion of the final registration steps, you will obtain a commercial registration certificate from the DED. 10) Register for VAT: Register for Value Added Tax (VAT) with the Federal Tax Authority and when your business meets the threshold, file the mandatory corporate taxes.
If you are considering forming your LLC in the UAE, it is essential to understand the procedures and legal requirements for a successful launch. The business set-up consultants at Ras Al Khaimah Economic Zone (RAKEZ) are ready to assist you, from understanding your initial requirements to completing the full set-up process. The support provided at RAKEZ ensures that you can set up your business with ease while trusting them to ensure all your company-related formalities are in check. Reach us on: Phone: +971 7 2041111 Email: info@rakez.com
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