Company Formation in Dubai

Company Formation in Dubai May 21st, 2016 [viewed 281 times]

Over the past decade, Dubai has emerged as one of the top business destinations in the world. Dubai has continued to be a favorite location for investors around the world as it remains tax free and diverse in its policy. Most of the investors prefer to setup Limited Liability Company or LLC Company in Dubai.

The Limited Liability Company can be formed with minimum of 2 and a maximum of 50 shareholders and the liability of shareholders are limited to their own share in the company capital. The LLC Companies are restricted to perform some kind of business activities like banking, insurance or money investment.

A Limited Liability Company requires an Emirati local partner or silent partner with 51% of share in the company and the expatriate investor will hold 49% of share. After all legal procedures are done, this local partner or silent partner will make an agreement in the court that he has no involvement in the company.

At Business Link, we provide complete assistance for clients who are interested in LLC company formation in Dubai. Our business consultants clearly understand your requirements, your budget, nature of your business activity, complete details of your partners. We help in guiding the clients to find proper location for setting up the company, also we can provide reliable local sponsor for your company. We take care of the entire incorporation process and obtain trade license and all other legal documents of the company within the shortest period of time.

* Sponsorship fee may vary depending on the business activities and requirements of clients. The sponsorship fee will increase if the number of employees increases to more than 100 and if a LLC company requires credit facilities on the MOA.

* The Memorandum of Association/Local Service Agent Agreement/Civil Works Agreement drafting and notarizing fees will be approximately AED 1925 (based on a 2 shareholder, AED 100,000 share capital computation).

* Payment Voucher for General Trading companies will be approximately AED 25,000 - AED 30,000.

* Sponsorship fees, PRO Fees, and License fees are annual and payable upon license expiry.

* Upon sign-up, the Name Reservation Fee of 660 AED and Initial Approval Fee of 160 AED must be paid and all actual government payments are invoiced as it is being processed. The client will pay all actual charges to CREATIVE ZONE before any application is made to Dubai DED.

* Should an LLC require credit facilities, the company must be able to provide proof of paid up share capital as per the MOA.

** Final Payment Voucher Fees are dependent on the business activity as well as cost of your annual lease (Market Fee is 5%).

CAPITAL REQUIREMENT FOR LLC COMPANY FORMATION DUBAI

On 10th August 2009, the capital requirement law was cancelled and in Dubai a Limited Liability Company can be registered without having Bank Deposit Certificate and Auditor Certificate.

LLC COMPANY SETUP PROCEDURES

Choose appropriate legal structure of the business
Select the name and the activities involved in your application.
Choose proper location for the proposed venture.
Compile & Submit the required document to get the license from Deportment of Economic Development of UAE
For some special business activities, get approvals from relevant regulatory & Government authorities.
Get office / Virtual Office/ Warehouse / Land for the operations
Obtaining Trade License, Certificate of Incorporation, Memorandum of Association, Share Certificates, Tenancy Agreement
Processing visas, labour cards and other legal documents

REQUIRED DOCUMENTS FOR LLC COMPANY FORMATION IN DUBAI

Investor’s passport copy
Local Sponsor’s passport copy
Manager’s Passport copy
NOC letter from the sponsor if the partner or the Manger has a residence visa in the UAE
Registration application form from Dubai Economic Department
Trade name reservation
Initial approval from Dubai Economic Department
Tenancy contract for the Office/warehouse attested by planning department and civil defense department of Dubai municipality along with location plan
Memorandum of Association duly attested from public notary