LLC Formation In Dubai


Dubai allows LLCs to come up with flexible, differential profit sharing arrangements. This can give you a great edge as the 51% local equity rule is inflexible in most cases.

A limited company may be formed by a minimum of two and a maximum of fifty persons whose liability is limited to their shares in the businesses capital. Most companies with foreign partners have opted for the Limited Liability Company, due to the fact that this is the only option that’ll give maximum legal ownership i.e. 49% to the expatriates for a trading license. As it is compulsory to keep one UAE national as a partner in the LLC company, prospective investor has to choose one UAE national (sponsor) as a partner in the company.

The time it takes to form a company will be approximately 1-2 weeks from the date of receipt of all documents. The licensing Authority in the Emirate of Dubai is the Department of Economic Development.

Advantages of a Dubai LLC

  • While foreign equity in the company may not exceed 49%, profit and losses will be shared in a ratio different to that of the share capital ratios
  • The most popular method of establishing a commercial company in Dubai
  • A Dubai LLC offers unrivalled access to Dubai and the wider UAE economy
  • Through a Dubai LLC, international entrepreneurs obtain Trade Licenses from the Dubai government
  • No specific minimum capital requirements
  • The investor becomes the partner in the company.
  • The investor gets the investor visa under which he/her enjoys an investor’s status in Dubai along with his/her family.
  • The investor can create more branches at different places for his activities.
  • The investor can run the business without the day-to-day interference of the local national partner.
  • The assets and capital created will be in the name of the company and not in the name of the local national partner.
  • Only a few restrictions on the activities of a Dubai LLC
  • Easy to open global corporate bank accounts following Dubai LLC set up

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