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How to set up a Limited Liability Company in the UAE? - Clever Corp

How to set up a Limited Liability Company in the UAE?

set up a Limited Liability Company in the UAE

Dubai has emerged as one of the world’s growing economies. Depending on the business activities, Dubai has chosen to open the company in three different jurisdictions, Freezone, Mainland, or offshore. Dubai has the best transportation and logistic session, which makes it unique, and these reasons make the mainland an ideal place. Here are all details about how to set up a Limited Liability Company in the UAE.

Typically an LLC or a Limited Liability Company can be defined as a company of commercial nature with a maximum of 50 shareholders. For the Dubai Mainland, this is the standard type of company. Ranging from Finance to agriculture, an LLC can undertake any business activity. The company structure is entirely free of liabilities like debts or court conjunctions.

The DED is the government body set up to issue all licenses for LLCs. It is also responsible for classifying and regulating the types of economic activity that may be undertaken.

How is an LLC advantageous?

A limited liability company offers several advantages for a business person over any other type of company:

  • Shareholders:  You can distribute shares of your company to up to shareholders, i.e., the company is flexible with the number of shareholders
  • Liability:  The amount of share a shareholder invests in the company’s capital determines each shareholder’s liability.
  • Varied location:  With an LLC, you can practice trade activities anywhere in UAE, including more than 50 free zones.
  • Visas:  The company owner is permitted to acquire unlimited work visas.
  • Premises: You will be given multiple options from which you may choose your desired location for buying or renting office premises.
  • Ownership: Despite not belonging to UAE, You’ll have 100% Ownership Of the company.

How to set up a Limited Liability Company in the UAE?

Quite a simple process has to be followed to register an LLC in the UAE. Here’s the guide for it:

  • Identify a Business activity

You can choose the business activity you want to carry out from the various available aspects like commercial, agricultural, professional, industrial, and tourism. Also, While forming an LLC, you can choose to fulfil multiple business activities. All are subject to approval.

  • Register the Trade name

While Giving a name to your company, you must keep the following points in mind:

  1.  Trade Name must reflect your business activity
  2. It should not be similar to the name of any registered firm
  3. It should not hinder the public morals and public order of the UAE
  4. After approval, the acronym LLC follows the Trade name
  • Apply for Initial approvals

For initial approval, you just have to ensure that the UAE government doesn’t have any objection to your business setup in their country. But this initial approval doesn’t permit you to run the business yet.

  • Draft Memorandum of Association(MoA) and other agreements

To give a final decision on the company formation, you have given a notarised MoA, which shows all the shareholders with their specific shares and roles in the company. 

Several other documents must accompany MoA, listed below:

  1. Articles of Association (AoA)
  2. Certificate of Incorporation
  3. Board Resolution 
  4. Power of attorney (PoA)
  • Choose your workspace

For the next step, you need to find a suitable location to set up the company office where you would be working regularly. 

  • Apply for other government approvals

Certain business activities require additional approvals from local or federal government entities. Specifically, They are related to legal affairs, security, financial securities, and commodities.

  • Submit documents and pay a fee

In the last step, you need to pay the required fee to finalise the setup of an LLC in the UAE along with submission of all the necessary documents.

Clever Corp Business consultant is the leading corporate service providers in Dubai who have established more than 10k companies in their journey. Our services give you a customized solution focused on your particular business and market, and we design strategies that enable our clients to achieve continuous growth and scale sustainably. To discuss more in detail your business plan, reach us today to have a suitable solution for your business dreams. We at Clever corp hold vast experience and our expert advisors are round the clock at your service to understand your idea better and get them into reality. Contact us at +971586412031 or +97145804048 to discuss with our experts at info@theclevercorp.com.

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