What are the benefits?

Onshore LLC companies within the UAE are required to be licensed by the Department of Economic Development (DED). There are multiple ways that licensed companies can be formed, but LLCs are the most common because they are less restricted than other forms and allow physical trading within the UAE. Here are some of the benefits of setting up an LLC in Dubai:

  • 0% income tax
  • An LLC can legally trade anywhere in the UAE, including in Free Trade Zones
  • The company can have anywhere between two and fifty shareholders
  • Each shareholder’s liability is limited to their shares in the company’s capital
  • An LLC can conduct any type of business activity except for banking, investment, and insurance
  • Investors can become venture partners
  • It is easy to open and maintain international corporate bank accounts
  • More business branches can be formed than with other company types
  • An LLC can buy and hold any amount of property in the UAE
  • An LLC can provide as many flexible resident visas as necessary to relevant personnel

There are additional benefits to LLCs that may apply to your industry, or the area in which your business is set up. If you would like to learn more about how the benefits of forming an LLC would apply to your business, you can schedule a call with us to discuss things in more detail.

Who can have a Dubai LLC?

An LLC offers foreign investors a lucrative opportunity to begin a business in areas across the UAE. There is a government mandate that requires 51% of shares to belong to a local partner who is a UAE national. This investor can be a silent partner, and a legal agreement can be drawn up to say that the silent partner will not have the authority to control business decisions. Having a local partner can also be a benefit to the company, as foreign investors can learn from their knowledge of the UAE markets and business regulations. This can give you an advantage over companies that are solely comprised of foreign investors.

Incorporating an LLC gives foreign investors (and their immediate families) access to UAE resident visas. There is no limit to the number of visas an LLC can obtain (subject to the business having sufficient office space), allowing you to build your company without restrictions. Under the new UAE Commercial Companies Law, an LLC can be formed with anything between one and fifty investors, so you can build your company as you grow. It is common practice for foreign investors to have a minimum of two shareholders, however, in order to have the required 51% ownership by a local partner.

An LLC can be held by any business except for those involved in banking, investment, or insurance. LLCs can hold any of the three types of business licences available in Dubai; commercial, professional, and industrial. In order to incorporate an LLC, approval must be sought from the Company Register, Licensing Department, and Department of Economic Development. At Charterhouse Lombard, we understand what is required to establish an LLC with each of these government bodies and can arrange all the documentation you need to register and begin trading under your LLC. We also offer ongoing administrative management services, ensuring that your business is always compliant with Dubai regulations.

How can Charterhouse Lombard help?

Charterhouse Lombard have years of experience helping foreign investors set up LLCs in Dubai and the UAE. We have thorough knowledge of the incorporation process and can provide you with advice tailored to your situation. Our expert consultants will advise you on the correct legal structure you should follow, based on the activities your business will be undertaking. By understanding your business, we can help you to navigate the LLC process in the most beneficial way.

Charterhouse Lombard can arrange all the necessary documentation for the LLC process, including those surrounding the procurement of visas and set-up of UAE business bank accounts. We can also help you to find a local UAE partner in order to fulfil government shareholder requirements. We will take care of all the required steps concerning documentation, including mandatory translations into Arabic and notarisation. We will manage the application process at every stage, taking care of all administrative points so you can focus on starting your business. You can contact us at any time to learn how Charterhouse Lombard can help you set up an LLC.