LLC Company Formation in Dubai | Flyingcolour
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Mainland LLC Company Formation in Dubai


A Detailed Guide To Setup LLC Company Formation in Dubai, UAE Mainland

Overview of Mainland LLC Company Formation in Dubai

The LLC Company Formation in Dubai is one of the more predominant types of business structure in the UAE.

Following are the important points to be understood for LLC company formation in Dubai.

An LLC company formation in Dubai or any other emirates of the United Arab Emirates requires a minimum of two and a maximum of 50 shareholders.

  • From 1st June 2021 ,  Foreign investor can own 100 percent shares in limited liability company for certain designated commercial activities.
  • The company limits all liabilities to itself only under this legal structure. Because shareholders are personally not liable for the company’s liabilities.
  • The required minimum capital for company formation in Dubai is AED 300,000. However, the required minimum capital in the other Emirates Mainland Company is AED 150,000. While planning a company formation in Dubai, you can increase the share capital.
  • The distribution of profit and loss can be among shareholders. So, any shareholder or even a third party can assume the responsibility of managing an LLC.
company formation in dubai | llc company formation in dubai
  • LLC cannot offer insurance, business banking, or money investment services on behalf of others. So, it cannot represent these shares as negotiable instruments.
  • Any individual or company can set up an LLC in Dubai Mainland to engage in any legal commercial activity.
  • Branches within the same emirate or in other Emirates jurisdictions can open an LLC.
  • Day-to-day operations including banking operations can be managed by the manager appointed in MOA which is notarized by public notary. So, the actual investor becomes the manager of the company. The company’s manager appointed by MOA is fully responsible for any misconduct or fraudulent activities taking place in LLC.
  • A Limited Liability Company can enjoy credit facilities from banks and other money-lending institutions, subject to credit approval from the respective lender.
  • In addition to this, special licenses are issued by the Department of Economic Development. So, certain activities may require approval from relevant authorities. These bodies include the DHA, KHDA, RTA, DTCM, and Dubai municipalities among others.
  • It is mandatory to rent an office or shop to incorporate an LLC.  So Mainland companies in Dubai can now register themselves on Desk facilities (Sustainability Centers) for certain activities.
  • Trading LLCs are allowed to conduct company formation in UAE as well as export and import goods freely.
  • All ex-pat shareholders are eligible to get a residence visa valid for 3 years subject to a minimum holding AED 72000 share capital in the company. So, expat shareholders can sponsor their family and parents and must fulfill the required documents.
  • The Labour department can recruit any number of employees in LLC, subject to fulfilling requirements.
  • Liquidation of LLC goes through the process of producing audit reports from Government registered Audit firms and newspaper advertisements.

Flyingcolour® assists you with the best llc company formation in Dubai.


What is the meaning of LLC in UAE?

LLC stands for Limited Liability Company in the UAE. It is a common business structure that offers limited liability protection to its owners while allowing them to actively participate in the management and operations of the company. An LLC company in the UAE is a separate legal entity distinct from its owners.

In an LLC in Dubai, how many partners can participate?

In Dubai, an LLC company can have a minimum of two and a maximum of 50 partners. So the partners can be individuals or entities, and they contribute to the capital and share in the profits and losses of the company according to their ownership percentage.

What is the meaning of LLC in UAE Dubai business setup?

LLC in UAE Dubai business setup refers to the process of establishing a Limited Liability Company in Dubai. So it involves registering the company with the relevant authorities, fulfilling legal requirements, drafting a memorandum of association, and obtaining the necessary licenses and permits to commence operations.

What is the benefit of LLC in Dubai?

The benefit of establishing an LLC in Dubai includes limited liability protection, where the owners’ assets are generally protected from the company’s debts and liabilities.

 It also allows for active participation and management control by the owners. Because an LLC can engage in various business activities across different industries and can operate in both local and international markets.

What is the difference between LLC and Freezone in UAE?

The key difference between an LLC and a Free Zone company in the UAE lies in their jurisdiction and ownership regulations. Moreover, an LLC operates on the mainland of the UAE and requires a local Emirati partner or sponsor. So it allows for conducting business within the UAE and internationally.

A Free Zone company establishes itself within a specific free zone area, providing benefits such as full foreign ownership, tax exemptions, and simplified regulations.  So, Dubai Free Zone companies generally operate within the designated free zone and must adhere to specific regulations for conducting business.

What are the benefits of company formation in Dubai?

Company formation in Dubai offers several benefits, including access to a thriving market, a strategic location for international trade, strong infrastructure, favourable business environment, tax advantages (depending on the jurisdiction), world-class facilities, the availability of skilled workforce, government support, and initiatives, and access to a global network of businesses and investors.

So all these benefits make Dubai an attractive destination for company formation and business expansion.

What is LLC Company formation in Dubai refers?

LLC company formation in Dubai refers to the process of establishing a Limited Liability Company in the city. Because it involves selecting a suitable company name, drafting the necessary legal documents (such as the memorandum of association and articles of association), fulfilling legal requirements and documentation, obtaining the necessary licenses and permits, securing office space, and completing the registration process with the relevant authorities. So, this allows the LLC to operate and conduct business activities in Dubai legally.

Flyingcolour® assists in all types of company registrations in the United Arab Emirates. We assist in Mainland, Free Zone, or Offshore company registrations in all Emirates of the UAE and also assist in opening bank accounts with all local leading banks. In addition to this, we closely work with all Government Departments and banks.

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