The UAE has a very high GDP and is one of the fastest-growing economies in the world. With such amazing potential for growth, it’s no wonder that many people want to start their own company in this country. However, there are some requirements that you should know about before starting your LLC company formation business in Dubai or any other Emirate.
Read on for 10 tips on how to form a Limited Liability Company (LLC) with success!
1. Make sure you have the right qualifications to form an LLC
There are several different types of companies that can be formed, each with its own specific requirements. Be aware that only certain nationalities are allowed to form a limited liability company in UAE, so check beforehand if you qualify!
2. Check government restrictions before forming your LLC company formation business
In the UAE, certain industries are regulated by governments and can only be carried out by those who have been authorized to do so. Be sure that your proposed business falls into a non-regulated category before starting it! The Dubai Chamber website has a great list of all the government agencies in the Emirate as well as a breakdown of the types of businesses that they regulate.
3. Make sure you choose the right location for your LLC company formation business in Dubai
To be able to start a limited liability company, you’ll need a DED license – and the majority of DEDs are only issued to companies located within special economic zones. If you plan on forming a non-specialized LLC, you won’t be able to get a DED license unless you are located in one of the designated free trade zones!
4. Decide whether you want to hire expatriates or Emiratis for your LLC company formation business in Dubai
If you’re forming an LLC in Dubai, then after completing the procedures there are only two options for hiring employees: either hire only UAE Nationals or only non-nationals. If you choose to hire both, then there are certain procedures that must be completed throughout the employment process!
5. Decide whether you’ll need an Emirati business partner
You do not have to find a local business partner when forming your limited liability company – however, it is a common practice and one that can be very beneficial. Having an Emirati business partner means you’ll be able to operate freely in the UAE market as well as avoid any limitations imposed by local laws. However, finding a business partner can take some time!
6. Make sure your LLC company formation business follows the Sharia law
In the UAE, all bank accounts and financial transactions must follow Sharia law – and this includes your business. As well as that, you’ll need to ensure that any goods or services sold by LLC formation Dubai adhere to these rules!
7. Forming a company structure for your LLC in Dubai
A limited liability company is formed with the registration of two or more shareholders, with each shareholder allowed to take up a share not exceeding 49% of the total investment. This is often done by forming a company that has one shareholder (who takes up 100%), then drafting an agreement between them and other potential shareholders including their percentage stake in the business.
8. Know how much it will cost to form an LLC company in Dubai
There are many factors that will affect the price of forming your limited liability company. The overall formation fees can be down to how you decide to set up the business – do you want a single shareholder or several? Does all of the business literature need to be printed in English? All of these factors contribute to the final price.
9. Determine whether you should form a company or an LLC
This is an important question as forming a company in Dubai, rather than an LLC, will give you fewer benefits and entitlements – as well as having additional responsibilities! You can check out a full list of differences between company formation UAE and limited liability companies by downloading our pdf here.
10. Finally! Forming your LLC company in Dubai can be done with the help of LEGAL DESIGN INTERNATIONAL !!!
We are helping people to create their companies for 15 years now !! We are not only doing what is right but also what is beneficial for them! Our team will make sure that your company is set up properly and gets the best possible chance of success!
With LEGAL DESIGN INTERNATIONAL LLC, we can provide you with all necessary services concerning your future company such as:
- Completing formation procedures for your newly formed LLC;
- Preparing documents such as Memorandum and Articles of Association, Contract of Establishment, Operations Manual;
- Opening a corporate bank account in Dubai International Financial Centre (DIFC) or in any other UAE bank;
- Providing you with complete office setup;
- Transferring your company to the desired Free Zone (e.g.: Jebel Ali, DIFC);
- Registering your company for VAT and Customs;
- Providing you with the necessary licenses and permits;
- Setting up of local phone line, fax, ADSL internet connection.