LLC Company Formation In Dubai
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If you’re looking to start a business in Dubai, one of the most popular and effective ways to do so is by forming a Limited Liability Company (LLC). This is a legal entity that can be used for a wide variety of business activities in Dubai, from trading and manufacturing to professional services and more. In this article, we will explore the process of LLC company formation in Dubai, and how BizzSetup can assist you in this endeavor.
A Limited Liability Company (LLC) is a type of business structure that combines the liability protection of a corporation with the tax benefits of a partnership. In Dubai, an LLC can have between 2 and 50 shareholders, who are only liable for the company’s debts to the extent of their share capital.
Benefits of LLC Company Formation in Dubai
There are many benefits to forming an LLC in Dubai, including:
Limited Liability Protection
LLC shareholders are not personally liable for the company’s debts and obligations, which means that their personal assets are protected in case of business failure.
Access to Tax Treaties
Dubai has signed tax treaties with over 80 countries, which can help businesses reduce their tax burden and avoid double taxation.
No Currency Restrictions
There are no restrictions on the currency used for LLC company formation in Dubai, which makes it easier for businesses to conduct international transactions.
Ability to Open a Bank Account
LLCs can open a bank account in Dubai, which is necessary for conducting business activities in the city.
Requirements for LLC Company Formation in Dubai
To form an LLC in Dubai, you will need to fulfill the following requirements:
Minimum Share Capital
LLCs in Dubai are required to have a minimum share capital of AED 300,000 ($81,674). However, this amount may be reduced to AED 150,000 ($40,837) if the company is engaged in certain activities such as consultancy services.
Business Activity Selection
You will need to select the type of business activity that you want to engage in, and ensure that it is not restricted or prohibited in Dubai.
Business License Application
You will need to apply for a business license from the Department of Economic Development (DED) in Dubai. The license fee varies depending on the type of business activity.
Memorandum of Association
You will need to draft and notarize a Memorandum of Association (MOA) that outlines the company’s objectives, shareholders, and other important details.
Process of LLC Company Formation in Dubai
The process of LLC company formation in Dubai typically involves the following steps:
Choose a Local Sponsor
LLCs in Dubai require a local sponsor who holds 51% of the company’s shares. BizzSetup can assist you in finding a reliable local sponsor for your business.
Obtain Initial Approval
Before you can start the process of LLC company formation in Dubai, you will need to obtain initial approval from the DED. This involves submitting a business plan and other relevant documents.
Memorandum of Association Drafting and Notarization
Once you have obtained initial approval, you will need to draft and notarize the MOA. This is a legal document that outlines the company’s objectives, shareholders, and other important details.
Obtaining Business License
After the MOA has been notarized, you will need to submit it along with other relevant documents to the DED to obtain a business license. This license will allow you to legally operate your business in Dubai.
Why Choose BizzSetup for LLC Company Formation in Dubai
BizzSetup is a professional company formation service provider that can assist you in the process of LLC company formation in Dubai. Here are some reasons why you should choose BizzSetup:
BizzSetup has extensive knowledge of the legal and regulatory requirements for LLC company formation in Dubai, and can guide you through the process smoothly.
The process of LLC company formation in Dubai can be time-consuming and complex. BizzSetup can help you save time by handling the process for you, allowing you to focus on running your business.
BizzSetup offers competitive pricing for its services, making it an affordable option for businesses of all sizes.
LLC company formation in Dubai can be a complex and time-consuming process, but with the assistance of BizzSetup, it can be made much easier. By following the requirements outlined in this article and utilizing the expertise of BizzSetup, you can form your LLC in Dubai with ease and start conducting business in one of the most dynamic and lucrative business environments in the world.