LLC Formation In UAE


UAE allows LLCs to turn up with flexible, differential profit sharing arrangements. This benefits the foreign investor to a great edge as the 51% local equity rule is inflexible in most cases.

Limited Liability Company can be formed with a minimum of two and a maximum of fifty shareholders 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 local business. As it is mandatory to have a UAE national as a partner in the LLC; prospective investor has the option to choose the one UAE national (sponsor) as a partner in the company.

The span of time to form a company will be approximately 1-2 weeks from the date of receipt of all the documents.

Licensing Authorities

The licensing Authority for different places in UAE are listed as follows:

  • Dubai : Department of Economic Development
  • Sharjah: Economic Development Department
  • Other Emirates: Municipality/ Chamber of Commerce

What are the benefits of UAE LLC?

  • While foreign equity in the company does not exceed 49%, profit and losses can be shared in a ratio different to that of the share capital.
  • The most popular method of establishing a commercial company in UAE.
  • UAE LLC offers unparalleled access to the wider Emirates economy.
  • 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 the Emirates along with his/her family.
  • The investor has the option to commence branches.
  • The investor can manage the business without the day-to-day interference from the local partner.
  • The assets and capital created will be in the name of the company and not in the name of the local national partner.
  • Very few restrictions on the activities of an UAE LLC.
  • Its easy to open global corporate bank accounts after LLC setup.

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