What is LLC Company in UAE | Benefits & Registration Process

Limited Liability Companies or LLCs stand as pillars in the corporate world. There are different types of companies that can be registered in mainland UAE. These LLCs are protected by a limited liability shield or laws which provides them flexibility to work without much burden of risks. It also provides 100% ownership to foreign shareholders. Not only this, but these LLCs have tax rebates as well which makes them a go-to choice for many entrepreneurs and business ventures. Such LLC Company in the UAE have some of their own advantages. Let’s get to know them.

Benefits of LLC Company

Limited Liability Protection

Many times when a company or firm falls, the owner’s assets are seized to recover the losses. LLC however protects owners’ personal assets from such atrocities.

Flexibility in Management

The members or owners of an LLC can choose the management structure as per their needs.

Pass-Through Taxation

The common problem of double taxation is terminated in an LLC as profits and losses are passed through the member’s or owner’s individual tax returns.

Capital Requirement

It is not required to invest a large capital to set up an LLC in the UAE. Yes, a minimal amount in the form of capital is to be deposited in the bank that remains blocked for 2 weeks. Apart from that, you don’t need to invest a fortune to set up an LLC in the UAE.

Ability to Raise Capital

The best part of an LLC is that you can even raise capital for your firm by adding members to your company. This not only helps the company to flourish but increases the chances of success as new talented partners bring more to the table than just capital. 

Registration Process of LLC Company in Mainland UAE

Select a Business Activity

Find what type of business you want to conduct and what activities is your LLC going to be involved in.

Trade Name Reservation

Reserve a trade name for your LLC. Without a name, your company won’t have any identity. Get your LLC’s name registered by the Department of Economic Development in UAE. 

Draft Memorandum of Association (MOA)

Outline your company’s objectives, activities, name of the members, and shareholding structure. This draft is called the Memorandum of Association.

Obtain Initial Approval

Once you have all the above-mentioned documents, submit them to DED for initial approval. The DED will verify the eligibility of the shareholders and the proposed business activities and if they comply with local regulations. 

Notarize Documents

 The next step is to notarize the MOA and other relevant documents at a public notary in the UAE.

Submit Documents to DED

After you notarize the documents, submit them all to the DED along with the necessary application form with fees. 

Receive Trade License

Once you get approval from DED, you will receive your trade license. This trade license will allow you to legally start your business in the UAE.

Register with Other Authorities

Depending on the nature of your business, you may need to register with other regulatory bodies such as the Ministry of Economics, the Ministry of Interior, or any specific industry regulators.

Obtain Visas

Now it is time for you to obtain your visas. Apply for residency for shareholders, employees, and dependents as per your need.

Register with the Federal Tax Authority (FTA)

Registration with FTA for your TRN (Tax Registration Number) is a must. 

Conclusion

Setting up an LLC in the UAE seems a little tough with so many steps but it’s not that hard. Many have moved to the UAE and started their entrepreneurship journey already. They have made a fortune by starting their business in Mainland UAE by taking advantage of the flexibility and ease that comes with LLC.

FAQs

1 What is an LLC Company in the UAE?

A Limited Liability Company (LLC) in the UAE is a business structure that combines the benefits of partnerships and corporations. It provides limited liability protection to its members while offering flexibility in management and taxation.

2 How long does it take to register an LLC in the UAE?

The timeline for LLC registration can vary depending on factors such as the completeness of documentation, the efficiency of government processing, and any additional regulatory requirements. Generally, it can take several weeks to complete the registration process.

3 Are there any specific requirements for foreign shareholders in an LLC?

Foreign shareholders can own 100% of an LLC in the UAE. However, it’s essential to ensure compliance with local regulations and obtain necessary approvals from relevant authorities.

4 What are the ongoing compliance requirements for an LLC in the UAE?

Ongoing compliance requirements may include maintaining proper accounting records, filing annual financial statements, renewing trade licenses, complying with tax obligations, and adhering to any industry-specific regulations.