Welcome to Dubaibusinessadvisors.com for LLC Company Formation in Dubai!
Planning to start an LLC company in Dubai? Welcome to Adam Global Dubai (aka Dubaibusinessadvisors.com), your one-stop-shop for all sorts of business setup services in Dubai and all parts of the UAE. With our Dubai business advisors by your side, business formation is no sweat, regardless of type, size, location and budget. Whether Dubai mainland or free zone, no matter what jurisdiction you choose for your company setup in Dubai. Coming back to mainland company formation in Dubai, if an LLC company is your first choice, we totally understand that you want the freedom to trade anywhere in the UAE and overseas without sharing the ownership of your company. Yes, expat entrepreneurs in the UAE now can enjoy 100% ownership of their mainland company without engaging an Emirati national or local/national service agent (L/NSA) for more than 2000+ DED-approved business activities under commercial and industrial licences. Thanks to the recent amendment done by the forward-focused UAE government to the country’s Commercial Companies Act! However, these are not the only benefits of setting up an LLC company in Dubai. Allow us to enlighten you about every aspect related to the mainland company that you are planning to establish in Dubai before you embark on your entrepreneurship journey.
What is a Limited Liability Company? And why it is most popular form in the UAE?
First introduced by the state of Wyoming in 1977, a limited liability company, usually called “LLC”, is that kind of business structure where its owners are protected from personal responsibility for the company’s debts or liabilities. It is one of the most popular types of business structures due to its hybrid structure that blends characteristics of both a corporation and a partnership. On the one hand, LLCs, like a corporation, furnish their owners with limited liability in the event of business failure while on the other, they just like a partnership, “pass-through” their earnings so that they are taxed as part of the owners’ personal income.
When we talk about LLC type of business in the context of the UAE, we actually mean the term a mainland or onshore company. One of the most common forms of UAE company, a Limited Liability Company (LLC) is a standard type of company established on Dubai Mainland that is governed by the Dubai Economic Department aka DED. Business persons who want to register their company under the mainland jurisdiction of Dubai must take approval from DED to be able to conduct the desired business activity in the UAE. The DED is in charge of issuing trade licences for commercial activities and classifying and regulating the types of economic activity that may be undertaken. Unlike Free Zone companies, an LLC is not restricted on where it can trade in the UAE. But this is not the only advantage of forming an LLC company in Dubai. There is no restriction on real estate ownership, or on the number of visas that can be acquired. Plus, there are no minimum share capital requirements for LLC company formation as well. Furthermore, an onshore establishment does not have to pay the standard 5% customs duty on imported goods. And the cherry on the top is, expatriate business persons can now enjoy complete business ownership (provided the desired business activity belongs to the category of DED-approved business activities for 100% legal ownership). Thanks to the latest amendments to the UAE Commercial Companies Law! Unsurprisingly, LLC company formation in Dubai is also the most popular and typically chosen route.
Types of Mainland Company Formation in Dubai
- Sole Establishment, Dubai
- Limited Liability Company, Dubai
- Branch of Foreign Company Dubai
- Representative Office
How to Start an LLC Company in Dubai?
The entire process of LLC formation in Dubai and making it operational completes in two stages:
- Pre-business setup tasks
- Post-business setup tasks
Pre-business setup steps in Dubai
Step-by-Step Guide to LLC Company Formation in Dubai
The process of Dubai LLC or mainland company formation in Dubai is a no-brainer, especially when you are working with a professional company formation expert like Adam Global Dubai. Just a few steps and voilà! Keep reading to gain a solid understanding of how you can proceed with an LLC company formation in Dubai. Here’s your step-by-step guide for mainland company formation in Dubai:
Step 1: Decide business activity and finalize a suitable trade name
It all starts with a name! Give your firm a unique name that checks all the boxes. Make sure the chosen name is not already taken and is in line with the UAE trade name rules and regulations. Also, the company name must be able to communicate the types of operations it is going to engage in. You may apply for a brand name/trademark registration at this point. Our experienced LLC business setup specialists in Dubai can help you not just in identifying the best business activity for your mainland company in the UAE and choosing a perfect name complying with it, but also registering the trademark.
Step 2: Decide a perfect location
Having a physical presence is mandatory for an LLC in Dubai. The location of your business is paramount to its success; therefore, you have to be very mindful when choosing one. Accessibility to your market, suitability to the nature of your business, and transit availability to get the most out of your office are some of the major factors that you must consider while finding the location for your Dubai LLC company or mainland company formation in Dubai. You might want to check out the mainland locations that are most preferred for business formation in Dubai currently. After you have found a perfect mainland area for your LLC setup, lease office space there that suits you down to the ground and have it decked up with the required amenities. You may get in touch with us for world-class, cost-effective office fit-out solutions as well.
Step 3: Find a local or corporate sponsor
You may skip the step if the commercial or industrial activity that you are planning to carry out is one/some of 1000+ approved activities eligible for 100 percent foreign ownership. From 1st June 2021, the amended UAE Commercial Company Law annuls the need for commercial companies to have a major Emirati shareholder or agent, thus, providing full foreign ownership to non-Emiratis of all nationalities of onshore companies established by them. However, the new law is not applicable to certain activities, including all the activities under professional licences. In case the planned commercial or industrial business activity is not eligible for full ownership, you have to collaborate with an individual local Emirati national sponsor to share 51% of your Dubai LLC company’s shareholding. Entrepreneurs planning to start a commercial business in Dubai prefer to partner with an individual local sponsor, as they usually don’t get involved in the operational activities. On the other hand, if your business activity needs a professional licence then to be able to operate in the mainland region of the Dubai you have to involve a service agent as a local sponsor who is an Emirati resident and shoulders a lot more responsibilities than just sharing 51% of the equity shares in your company. Your business setup advisor in Dubai can tie you with a legitimate Emirati national for corporate sponsorship or local service agent.
Step 4: Get the initial approval/NOC
The next step, after deciding on a name, activity, and location, is to apply for initial approval. Obtaining an initial approval means the UAE Government doesn’t mind you establishing the planned business in the country. If not for NOC from the DED for the activity in question, you can’t proceed with the next steps of LLC company formation in Dubai, UAE. Do not confuse the initial approval certificate or NOC with the final approval. It does not authorise you to run or practice the desired business activity. For that, you need the final approval from DED and have a Memorandum of Association, Certificate of Incorporation, Trade Licence, share certificates, visas, tenancy agreement, labour cards, and other legal documents. For instance, foreign investors must receive the approval of the General Directorate of Residency and Foreigners’ Affairs before getting the initial approval. Some activities require additional approvals from government entities related to that particular business before applying for the initial approval. These include activities related to legal affairs, security affairs and financial securities and commodities. Once you have gathered all the relevant documents, submit them to DED to obtain initial approval. Here’s the process to apply for initial approval:
- Go to the digital platform of the Ministry’s services
- Fill and submit the “Issue Initial Approval Certificate” application
- Pay the application fees (non-refundable)
- Wait until the customer happiness staff evaluates the application and issues the initial approval certificate (if it is not disapproved)
Step 5: Ready your application before filing
There are various documents you have to attach with your licence application. Ensure all these documents are in place to avoid any delay in application approval. You’ll see the list of documents required for mainland company formation in Dubai ahead. One of them is duly notarised MoA. The LLC form of the company requires all the partners/shareholders to sign a Memorandum of Association for company formation in Dubai. Limited Partnership, Public Joint Stock Company (PJSC) and Private Joint Stock Company (PrJSC) are some other legal forms of a company that needs a complete, signed MoA to be able to operate in the UAE. UAE-based law firms, courts and notary public prepare and attest MoAs and agreements. For personalised services, you may approach a Dubai-based one-stop-shop business set-up consultant as well. You also have to sign a local service agent if you are starting a branch company or professional licenced business in Dubai. Businesses owned completely by non-GCC residents require a local service agent from the UAE. Just like MoA, the local service agent agreement also must be attested by the notary public or the court. A legal documentation expert at Adam Global can help you draft and attest the required documents for business formation in Dubai including MoA, AoA, LSA agreement, etc.
Step 5: Obtain all the approvals for the business activities
If your intended business activities are specific in nature, you will need to obtain special approvals from local or federal government bodies. Say, if you are planning to form a branch company, you have to register it with the Ministry of Economy and have to get clearance from Legal Affairs Department on the legal activities. Remember, these external approvals are necessary to move your trade licence application forward with DED. You may get in touch with a reputed mainland company formation consultancy in Dubai to figure out if your business activity requires special approvals.
Step 6: Pay the fee and collect the business licence
Upon application submission with all the required documents, the applicant receives a payment voucher (detailing the fees incurred) from DED. They have to make the payment to be able to collect the licence and do business in Dubai and any part of the UAE with their brand-new LLC. The process of company formation in Dubai completes here. Although a business licence application form is filled out during the incorporation process, the government will issue a licence after the business is registered. Once you receive a valid licence, your business is official in the market, and you can go ahead with the day-to-day operations.
Post Business Setup To-Dos in Dubai
Business formation in Dubai can complete in just these 6 steps, but in reality, this is the first step toward your never-ending entrepreneurship journey. Post business set-up steps are as important as the company incorporation or company registration steps. You may always hire an expert business setup consultant in Dubai to jump through these many hoops on your behalf. Our advisors have years of experience in this field and can make the process smooth and hassle-free. To become a full-fledged business entity in Dubai you’ve got to take some more steps such as:
- Opening a corporate bank account for financial transactions. It can be opened with any bank (local or international) in any emirate of the UAE once all the submitted paperwork has been returned to you
- Buying corporate insurance to safeguard your business from unheralded risks
- Making a company stamp
- Registering the business with the Ministry of Immigration to obtain the establishment card to be able to apply for shareholder/investor visas
- Apply for your and your family/dependents’ visa along with other necessary visas. A Dubai visa application undergoes four stages: entry permit, status adjustment, a medical fitness test, then Emirates ID registration and visa stamping
- Registering the company with the Ministry of Labour to acquire the labour card to be able to initiate employment visas to build a team
- Registering employees with social security, an old-age pension program for retired workers and employees, to be able to provide pension to the employees when they reach their official retirement age. A little portion of the gross earnings of the employees on a PAYE (pay-as-you-earn) basis is deducted every month to make it. Both the employer and government contribute a certain percentage of the insured person’s salary to social security
- Creating a WPS system that allows the employer to electronically credit salaries and wages of the employees via banks, local exchanges and financial institutions that are authorised to provide WPS services
- Establishing an accounting system for maintaining accounts for filing purposes
- Designing a company website to educate the target audiences and enable them to easily get in touch with you via an electronic platform
- Developing promotional and branding strategies to let the potential customers and clients know about your offerings
Once all your post-company incorporation functions are accomplished, you become a full-blown LLC company in Dubai and can legally operate your activities inside and outside of the UAE. Our Dubai business advisors can also assist you in day-to-day operations of your newly started company. From bookkeeping & accounting activities to VAT registration & training to soon-to-be-implemented corporate tax preparation.
What is the Cost of LLC Company Formation in Dubai?
Before taking off to Dubai to turn the dream of your own LLC company formation into reality, it is vitally important that you have a fair idea about the costs involved in the mainland company formation in Dubai, as you don’t want to run into a stone wall due to lack of funds. But you can’t expect to get a definite answer to this question, as Dubai mainland company formation cost in Dubai depend on myriad factors including the company location, legal structure, number of visas to be applied for and number of external approvals required. Not to mention the various mandatory costs such as government fees, business incorporation fees, initial approval fees, trade licence fees, etc. Below are the approximate costs you usually incur during the course of the LLC company formation process in Dubai.
- Trade name registration fees: AED 620 (AED 2,000 for foreign name registration), one-time cost
- Initial approval fee: AED 120 (one-time cost)
- External approvals cost: Depends on the type of activities you choose. For instance, one needs approval from Supreme Petroleum Council to conduct onshore and offshore gas and oil-field services and onshore and offshore oil drilling operations
- Office rent: Depends on the office size required and location. Average office rent is AED 50 and above sq. ft. per annum
- Market fees: paid to the government as a percentage of the office rent: 5% of the rent for shops & 20% of the rent for warehouses
- Memorandum of Association attestation costs: AED 1100 (one-time cost). AED 300 for the signature of each of the parties to the document for attestation of the signatures on the document valued does not exceed AED 100,000
- Contract and court agreement drafting charges: AED 500 for typing
- Dubai local sponsorship fees: Depends on the business type. Average sponsorship cost swings between AED 10,000 and 25,000 and can even be more in case of certain activities such as contracting and real estate
- Trade licence fees: AED 10,000
The registration cost of an LLC company formation in Dubai generally ranges between AED 22,000 and AED 24,000 excluding the costs involved in obtaining a trading licence and other miscellaneous expenses. Taking all the expenses detailed above into account, the LLC formation cost in Dubai under professional licence can easily go beyond AED 50,000. To know the exact cost of your LLC company formation in the UAE, you must get in touch with our business setup consultant in Dubai.
Why Should You Invest in An LLC Company Formation in Dubai?
First, let’s know why Dubai for your LLC company setup. Dotted with world-famous sky-scraping structures, beguiling beaches, trailblazing amenities and intelligent infrastructure, Dubai, the most magnetic emirate of the UAE, has been luring tourists from the world over. It is no more a secret that one can surely strike gold in a world-famous tourist place as a business person. We are positive no entrepreneur in any corner of the world is stranger to Dubai’s business-friendly environment made of low-tax regime, smart transportation system, trendy offices, simple government policies, plenty of free trade zones, and quick and straightforward business formation process with minimal formalities. And do we need to mention the business opportunities poured into the city by the mind-blowing EXPO2020 held recently? There are endless reasons to live and do business in the glassy and classy Dubai.
And now coming to why an LLC company formation in Dubai. Migrating to Dubai to establish a company with your name written all over it is a real milestone in your life. And when it’s an LLC company in Dubai, then you are on easy streets. One of the top business destinations in the world, Dubai is home to millions of companies and most of them are LLC, making it the most popular form amongst entrepreneurs in Dubai just like many other parts of the world. The popularity is only growing with the possibility of 100% ownership with a mainland company in Dubai like free zone companies. In addition, with an LLC company in Dubai, you have a leg-up on increasing your presence worldwide as there are no restrictions on trading outside the UAE. Personal liability protection, tax flexibility, easy startup process, less compliance paperwork, management flexibility, distribution flexibility, few ownership restrictions, charging orders, and the credibility it can give a business, are some of the major benefits of investing in an LLC company in Dubai. The cherry on the top is that LLC is the easiest to form of all the organizations that can be established in Dubai under Federal Law. Without a doubt, it’s worth investing in a Dubai LLC setup, if you want to do business in Dubai with minimal restrictions and maximum liberties.
DED maintains a list of more than 2,000 permissible business activities. they wish to carry out in the UAE. And the best part is with external approvals they can conduct specific activities as well that are not mentioned in the licence. Besides these benefits that the city brings to business persons, there are a cartload of other advantages that they get to enjoy by establishing an LLC in mainland Dubai, such as:
- 100% foreign ownership for more than 1000 commercial as well as industrial activities without the need of involving local Emirati partner
- The process of an LLC company formation in Dubai is easy compared to other jurisdictions in the UAE
- LLCs in Dubai offer an advantageous profit return
- The liability of the shareholders is limited to their shares in the company’s capital
- An LLC in Dubai is free to carry out any type of activity barring activities related to insurance, banking and investment
- A Dubai LLC has access to Dubai’s local market. One can trade freely within Dubai and across the UAE under the DED licence
- A limited liability company in Dubai can legally trade anywhere in the UAE, including the Free Zones
- There are no restrictions on the number of visas that can be acquired
- A limited liability company in Dubai doesn’t have to face any restrictions on the location where the company can rent/buy office premises
- Limited liability companies in Dubai can be formed without the need for any paid-up capital
- A DED licence empowers one to launch, sustain, and expand their business venture in Dubai
- LLC can engage in diverse business activities provided they have the necessary approvals
What Advantages Will You Get for Company Formation in Dubai, If You Choose Us?
Adam Global can be the cheapest, fastest and most reliable way to form your LLC company in Dubai. Not just because we have been serving the industry for more than 2 decades and written over 2000 successful entrepreneurial stories, but we keep our clients above everything else. We believe in working “with them”, not for them. It is vitally important for our business setup advisors to understand the clients’ requirements and come up with the most suitable option that fits in right. Our LLC formation Dubai team of experts is happy to assist you every step of your way where you are at the initial stage of the Dubai mainland company formation or final stage of the company registration in Dubai. By choosing Adam Global Dubai mainland company formation business advisors, you are in for a wide range of advantages such as:
- Access to seasoned professionals with rich experience in Mainland Company Formation in the UAE, Free Zone Company Formation in the UAE and Offshore Company Formation in the UAE
- Precise execution
- Professional services with personal touch
- Complete assistance in pre-LLC company formation in Dubai and post-LLC company formation in Dubai
- One-stop-spot for all business-related services
- Affordable, all-inclusive tailor-made benefit packages for Mainland Dubai company formation. Our Mainland Company Formation Package starts from AED15,000 which includes, Trade Licence, 1 investor Visa, Accounting & Booking Services for 3 Months, Bank Account Opening Assistance, Family Visa Application Assistance and PRO Services
- Cost-effective expert services for LLC company formation in UAE
- Best in industry business consultancy fee
- Access to the lowest ways to reduce Dubai mainland company formation cost
- Best-in-class advisory on mainland company formation in Dubai
- Quick LLC company registration in Dubai
- Paperwork done by experts
- No legwork from obtaining initial approval to final approval to LLC company registration
- Assistance in gathering external approvals (if applicable)
- Impeccable assistance in LLC company formation in Abu Dhabi, Sharjah, Ras-Al-Khaimah and other emirates of the UAE
- Assistance post LLC company formation in Dubai
- Access to hands-on expertise in LLC formation in Dubai or any part of the UAE
How Dubaibusinessadvisors.com Will Help You in Your Dubai Company Formation?
We won’t contradict our statement by saying that setting up a mainland company in Dubai is daunting. Despite being easy and quick, the process of Dubai LLC company formation involves several steps and a lot of paperwork from initial approval to final approval to LLC company registration in Dubai. Depending on the business activity you have chosen to conduct under your trade licence, you might need to get external approvals as well, which might delay the licence approval. Plus, location decisions might also uptight you as being new to Dubai you have no idea which mainland area would be the best suitable for your business. Simply put, business stands on strong and correct big-little decisions – from selecting an appropriate name for the LLC to figuring out the type of business activities and trade licence type covering them to finding the best location for the office. And you can afford a nominal business consultancy fee, but not a single wrong decision or mistakes. Therefore, it is advisable to get in touch with one of the best LLC company setup consultants in Dubai, such as Adam Global. Our highly qualified business setup advisors will help you put every block of your business in the right place, so that you can run your brand-new company with a new spark in your eyes.
All you have to do in order to fulfil your dream of incorporating an LLC company in Dubai is – share your requirements with our business formation specialists. No matter what challenges you are facing during or middle of the business setup process, you are covered at Adam Global. Click here to book your free consultancy with our LLC setup specialists in Dubai.