Dubai is a unique city that combines the best aspects of both the Middle East and the West. It’s one of the most attractive business locations on Earth. As a result, it’s only natural that a lot of people would want to learn about LLC Company Formation in Dubai.
In this article, we’ll explain the fastest, most cost-efficient and easiest way to start an LLC for those who want to start a business!
LLC Company Formation in Dubai: How to Get Started
The key to LLC Company Formation Dubai is to have a registered agent. The registered agent is the entity that will receive all legal correspondence on behalf of your Dubai company. They’ll also be responsible for forwarding any such documents to you or another designated representative.
Next, it’s time to choose a business name. This must be approved by the Department of Economic Development (DED) and it’s important to make sure that it’s not already in use.
LLC Company Formation Dubai is a fairly straightforward process, but there are a few things you need to keep in mind. Essentially, the most important thing is to choose a registered agent and make sure that the business name you want is available.
You’ll have to figure out whether you need an e-commerce licence next. In the UAE, it’s critical to distinguish between providing service and selling products. If your business sells tangible items in the UAE via internet platforms, you will require an e-commerce licence.
Conversely, if you are a business consultant who gives online classes, you do not need an e-commerce licence. Instead, you’ll need a professional certificate, which allows you to provide your professional services to clients. Another instance when you don’t require an e-commerce licence is if you sell digital items and use payment gates or the internet.
The Company Setup Cost in Dubai
Basically, the costs associated with setting up a company vary depending on the type of company you want to set up. For an LLC, the cost would be around AED 2500 including registration fees and other government charges. However, if you want to establish a branch office or representative office, it will cost more, usually in the range of AED 7000-8000.
The most cost-efficient way to set up an LLC in Dubai is to use a company formation specialist. This will ensure that you’re doing everything correctly and avoid any expensive mistakes!
We can help you to:
- Register your company
- Get a company licence
- Set up your bank account
- Build and market a website
- Find office space
Since 2009, our company formation experts have assisted more than 60,000 business owners and founders in Dubai with company establishment. We’ve done the hard lifting while they concentrate on their exciting new business. Our method saves you time and money while managing the difficulties of starting your business.
Does LLC Company Formation In Dubai Provide a Visa?
This is a common question, and the answer is unfortunately, no. The company setup process does not include a visa.
If you want to come to Dubai to work for your LLC, you will need to apply for an employment visa. This can be done through the Department of Immigration and Naturalisation. You’ll need to have a job offer from a local company and meet other requirements in order to be granted a work visa.
The process of setting up an LLC company in Dubai can seem daunting at first, but it’s really not that difficult. With the help of a good business consultant, you’ll be able to have your new company up and running in no time!
To help answer questions about citizenship and visas, we partnered with Next Generation Equity, the citizenship experts.
How to Register a Company in Dubai
In a few simple steps, you could be the owner of a UAE company. The process is very straightforward, and our team can guide you through every step to ensure that your business setup goes as smoothly as possible. Here’s how it works:
First, you need to choose a registered agent. This is an entity that will represent your company and receive all legal documents on its behalf.
Next, you need to decide on a company name and make sure it’s approved by the Department of Economic Development (DED).
Finally, you have to file for your company licence and commence business operations!
Taxation of a Limited Liability Company in Dubai
Did you know, there are several tax benefits associated with the formation of a limited liability company. Apart from the oil and petroleum industries, there are no corporate taxes charged on firms registered in the country. A recent modification to the tax law, however, has introduced the value-added tax (VAT), which is collected at a very low rate. The VAT in Dubai is 5 per cent.
Aside from the tax, llc in Dubai provides several advantages, including free repatriation of earnings for foreign investors and falling under UAE double tax treaties.
UAE has a favourable tax system that draws a large number of entrepreneurs each year, as is known. In Dubai, there is no corporate tax for limited liability firms, which is an attractive feature for international investors. With our specialists, you may learn more about how to form a company and take advantage of the lack of corporation tax.
Setting up a limited liability company has several benefits, particularly for international investors. The following are some of the advantages:
- Dubai LLCs are similar to LLCs in other countries based on the American standard and are internationally recognized.
- The United Arab Emirates has a double taxation avoidance treaty with many countries, meaning that profits and capital gains are not taxed twice.
- 100% foreign ownership is allowed.
- There is no limit on the amount of money that can be transferred in or out of the country.
- All members of an LLC enjoy limited liability.
- There are no restrictions on the type of business an LLC can undertake.
- The local government offers a wide range of support services to businesses, including help with licensing, visa applications, and more.
Finding Business Premises in Dubai
After you’ve set up your LLC and taken care of all the paperwork, one of the most important considerations when starting a business is finding suitable premises. Conveniently, Dubai offers a wide range of office and commercial spaces to suit every budget and requirement.
The best way to find the right property is to work with a professional real estate agent who knows the market inside out. They will be able to show you properties that match your specific requirements and help you negotiate the best deal.
If you’re on a tight budget, there are also a number of coworking spaces available in Dubai that offer great value for money. These include the Hub in Dubai Media City, WeWork in Jumeirah Lakes Towers, and The Office in Barsha Heights.
If you need industrial premises in Dubai, you can check the popular website Dubizzle or the Real Estate aggregator website Property Finder. Here you’ll find a wide range of properties, including warehouses, factories, and storage spaces.
For artists and creatives, there are some work/live style units in Dubai including the studio spaces in the Bastakiya Arts Hub and Alserkal Avenue.
FAQ About Setting Up A Business In Dubai
So, you’ve got some questions about limited liability company formation? Here’s a quick list of frequently asked questions about setting up a limited liability company – llc:
What types of the licence can an LLC hold?
The types of businesses an LLC can engage in are practically limitless. The only exception is that an LLC cannot engage in banking or insurance activities.
- The following commercial licence categories are available to LLCs:
- Professional services
- Tourism and hospitality
Can a foreign national own 100% of an LLC in Dubai?
Yes, there is no limit to the amount of foreign ownership in an LLC.
Do I need a local sponsor to set up my company in Dubai?
No, a local sponsor is not required to form an LLC in Dubai.
How long is the process for setting up a company in Dubai?
The entire process, from choosing a registered agent to commencing business operations, usually takes about two weeks.
What is the minimum capital requirement for an LLC in Dubai?
Importantly, there is no minimum capital requirement for an LLC in Dubai. However, it’s important to note that all businesses must have at least AED 5000 in order to commence operations.
Can an LLC hire employees in Dubai?
Yes, an LLC can hire employees in Dubai and sponsor them for residency visas.
Can I repatriate profits made by my company in Dubai?
Yes, all profits earned by a Dubai LLC are tax-free and may be repatriated at any time.
Can you help me find international accountants?
Yes, our firm can provide a number of services to help you get your business off the ground in Dubai. We can connect you with international accountants and help you set up a banking system that works for your company.
How many members must an LLC have in Dubai?
An LLC in Dubai must have at least two members, and there is no upper limit on the number of members an LLC can have.
Are Business Loans Available In Dubai?
Yes, there are a number of lenders in Dubai that offer business loans. However, it’s important to note that the terms and conditions of these loans can be quite restrictive.
If you’re looking for financing for your business in Dubai, our firm can help connect you with the right lender. We have a wide network of contacts in the business community and can help you get the best deal possible.
What is the process for dissolving an LLC in Dubai?
The process for dissolving an LLC in Dubai is relatively simple. The company’s shareholders must pass a resolution to dissolve the company, and the company must then file a notice of dissolution with the relevant authorities.
If you’re interested in starting a business in Dubai, our firm can help you every step of the way. We offer a wide range of services, from company formation to accounting and taxation consultancy.
Still, have questions? Visit our FAQ section.
Are You Ready To Start a Business In Dubai?
There are few restrictions on the type of company that can be formed, and LLCs enjoy limited liability for their members. If you want to start a business in Dubai, our team can help you every step of the way.
Starting a business in Dubai is an attractive proposition for entrepreneurs from all over the world. The city offers a favourable tax system, 100% foreign ownership, and a wide range of support services from the government.
Do you want to start work on your LLC Company Formation in Dubai? Then, we think a limited liability company is the best option. With our team’s assistance, you can take advantage of the many benefits this type of company offers. For more information company formation, Contact us today to get started!