LLC Formation in Dubai

LLC Formation in Dubai

How can I set-up a Limited Liability Company (LLC) in Dubai? What are the procedures of setting up an LLC Company in Dubai?   Limited-Liability Company (LLC) In a limited-liability company, the minimum number of shareholders is two and the maximum is 50. The liability of shareholders is limited to their shares in the capital. The company may carry on any type of activities except insurance, banking, or money investment. In UAE, The minimum capital requirement law was abolished on 10th August 2009. The memorandum of association must include the following: Trade name of the company, its objectives, head office, duration, names of shareholders, their nationalities, addresses, and places of residence; and Amount of capital, share of each shareholder, and a statement of capital paid in kind (if any), names and nationalities of the company managers, distribution of profits and losses which may not necessarily be in the same proportion as the capital, and the adopted method of notification. In Dubai, Capital Deposit rule has been cancelled. i.e. Limited Liability Company can be formed without Bank Deposit Certificate and Auditor Certificate. In Abu Dhabi, minimum capital requirement is Dh150,000. The manager of the company will be allowed to operate the account as soon as the incorporation is completed. The Manager of the company can be more than one and he/they shall have all administrative and financial powers. A shareholder may transfer his share in the company or part of it to another shareholder or to a third party. Management is handled by no more than five designated managers, who are not necessarily members of the company. Non-UAE nationals may own up to 49 per cent of an LLC. In distribution of profit and loss, foreign investor can have 80% and 20% local UAE sponsor. It is imperative that each limited-liability company appoints auditors to satisfy the requirements of the Commercial Companies Act. The law does not permit this form of company to issue share certificates. Evidence of ownership in the company is related and evidenced by the percentage contributed, assigned, or transferred in the share capital. Silent Partner A larger portion of Dubai Limited Liability Companies use the local UAE sponsor as a "silent partner." In this arrangement, the local UAE sponsor is usually paid an annual "sponsorship fee" in return for giving up management control of the company to the foreign investor. To prepare your LLC Agreement call +97150-7447833 read more Steps of forming a Limited-Liability Company (LLC) Name reservation from Department of Economic Development (DED) or Ontime office at Business Village near Clock Tower or Tas'heel Centre at Al Tawar Centre, Qusais. Fees: Dh260 including service charge. Foreign/English words and short words/Abbreviation will be charged extra fee of Dh2000 per year at the time of license renewal. First time fees should be paid along with first license fees. Note: Trade Names that cannot be reserved: Name of country, Name of Continent, Famous regions and Towns, Colour (blue, red etc.). Initial Approval for activity from Department of Economic Development (DED). Initial approval fee Dh110 to be paid at DED. Documents required for initial approval: Filled form, Passport Copies of Partners, Naturalization book's (Jinsiyya) copy of Local Partner, No Objection Letter from the sponsor for expatriate partners (NOC is not required for visit/Tourist visa holders and their visa copy should be attached). If UID Number is not mentioned in the Visit/Tourist/Transit visa, it has to be collected from Immigration Department on payment of Dh130. Some activities require initial approval from concerned departments (eg. Municipality, RTA, National Media Council etc.) Preparing Memorandum of Association (LLC Agreement) Attestation of Memorandum of Association from Notary Public. As per the new rule, the court agreement must be typed by legal translator or get seal and signature of the legal translator on the agreement if it is typed from normal typing centre. Tenancy Contract (It is suggested to contact the counter of the Planning Dept. of Dubai Municipality, at the Department of Economic Development, on Telephone No. 04-2020105, or the Municipality’s Telephone No. 04-2063788, before leasing the premises in order to ensure that it is suitable for the business). Get approval on Tenancy contract from Planning Dept. of Dubai Municipality at DED. Submit Initial approval, Name reservation certificate, Attested Memorandum & Tenancy Contract at Department of Economic Development. Payment voucher will be issued same time or can be printed from DED Website after two days. Special approval required for certain business activities from the concerned authorities Tourism CompaniesFor Inbound Tou rism Dh100,000 to be deposited in Bank For Outbound Tourism Dh200,000 to be deposited in Bank These deposits are irrevocable till the license cancelled. Travels For Travel Agency Dh100,000 to be deposited at Department of Tourism & Commerce Marketing. This deposit is irrevocable till the license cancelled. Building Contracting CompaniesFor Building Contracting Company License, Dh10,000 to be extra at the Department of Economic Development when the license issued first time. Office area should be minimum 1500 square feet. Engineering Consultants: Minimum office space 1000 square feet required. General TradingFor General Trading License, Dh15,000 to be paid extra at the Department of Economic Development when the license issued first time. Customs Broker Dh50,000 to be deposited at Dubai Customs. This deposit is irrevocable till the license is cancelled. RTA Activities (following fees to be paid for RTA initial approval) Rent a Car: Dh5000   Bus Rental: Dh1000 Passenger Transport by rented Buses: Dh1000 Telephones & Telecommunications Equipment Trading Dh5500 to be paid at Telecommunications Regulator Authority (TRA). This is one time fee. Security Service: Property guard & Surveillance Services, Party security & private guarding services Initial approval from Department of Protective Systems, Dubai. Tel. 04-2048312 Oilfield & Natural Gas related activities Initial approval from Ruler's Court Money Exchange Initial approval from Central Bank of UAE and Department of Protective Systems Jewelry Initial approval from Department of Protective Systems Supermarket For supermarket, minimum 2000 square feet area is required. Electrical Fitting Contracting: minimum 360 square feet area is required.