Formation of LLP In Dubai, UAE

FORMATION OF LLP IN DUBAI, UAE

A. Eligibility Criteria:-

1. Partners: Minimum 2 and Maximum 50.

2. Foreign Contribution: Cannot exceed 49%. (in other words, you are required to have 51% stake of residents of Dubai)

3. Profit & Loss Distribution: Allowable as per Mutual Agreement of the Partners.

4. Management: Can be vested in Foreign Partners / National Partners / Third Party

5. Business allowed under LLC: Single Trading, General Trading, Advertising Agency, Technical Services, Contracting, Transportation.

6. Compulsory Office: Virtual Offices are not allowed. Enterprise must have a physical address and an actual office.

B. Brief Procedure:-

• Finding a Local Sponsor (Agent)
• Determine Economic Activity Type of business
• Submitting Application for Company Registration to DED with proposed Company Name
• Obtaining Trade License by Submitting Company’s Documents to DED or Chamber of Commerce and Industry
• Notarizing the Company’s Memorandum of Association (MOA).
• Registering Trade Name
• Applying for an Establishment Card
• Obtaining Initial /Special Approvals, as the case may be,
• Signing MOA and Lease Agreement in front of Public Notary
• Obtaining Location and Inspection Approval From Municipality
• Documents Processing to Get Payment Voucher Issued
• Paying License Fees to Get Trade License Issued
• Fulfilling all Licensing Requirements
• Getting Approval from Name Board and from Ministry of Labour for Employees
• On thorough investigation of all the documents, the Legal department of State Government of UAE includes the name in Commercial LLC business register and publishes the MOA in the Economy & Commerce Bulletin of the concerned Ministry.

C. Licensing:-

Basic condition for carrying out business activity/ies in Dubai is to acquire one of the following three categories of licenses:

1. Commercial Licenses – includes all kinds of trading activity

2. Industrial Licenses – for setting up manufacturing or an industrial activity

3. Professional Licenses – Encompassing Artisans, Craftsmen, Professions and other such services

Department of Economic Development, Dubai is the licensing authority that issues license for major activities.

However, certain kind of activities require Special Approval from the related Ministry /Department. For instances, some of them are depicted hereunder:

D. Advantages of LLC:-

• No specific minimum capital required for LLC Company formation in Dubai
• No taxation for LLC Company Dubai.
• The liability of the company is limited to the company only, means if any loss arises to the firm the partners are liable to the extent of their share of capital only and their personnel assets will not be attachable.
• A Dubai L.L.C. offers unrivaled access to Dubai and the U.A.E. economy, with Dubai L.L.C. investors can get Trade Licenses from Dubai government.
• LLC Company investor gets an investor visa
• There are few restrictions on the activities of a Dubai LLC and it is possible to obtain a license for almost all the activities.
• Through a Dubai LLC, the company gets strong physical presence in Dubai and UAE.