LLC company formation in Dubai is great choice because Dubai is a land of many opportunities. With LLC company formation in Dubai you can take your business to a new height. Starting a new business in Dubai is now easier than ever especially with the help of a professional business consultant. B2B Document Clearing is a trusted company for llc company formation in Dubai and UAE by many clients. As our mission is to provide efficient, cost effective and personalized service with the highest quality service possible. If you are planning to open a new business in Dubai then Limited Liability Company (LLC) is an ideal option.
LLC Company Formation in Dubai
What is LLC (Limited Liability Company)?
An independent legal entity owned by multiple shareholders, established on the UAE mainland. It has low start-up costs and full access to the wider UAE marketplace. A LLC (Limited Liability Company) can open a bank account, get a tax identification number, and do business that is all under its own name in Dubai. LLC is the most common business set up in Dubai and UAE mainland. This is the very ideal business set up for the new entrepreneur or business person.
Why LLC (Limited Liability Company)?
LLC is the very affordable company formation. You don’t need to get broke in starting a new company because LLC has the low startup cost.
How to form LLC in Dubai ?
It is advised that you ask help from a company formation specialist. B2B Document Clearing is specialized with this matter. Contact our friendly staff and we will guide you all throughout the process. We will be with you from the start until new are ready for your new company. Following are the steps to form LLC in Dubai.
Step 1 – Choose a business activity
Dubai Development of Economic Department has the available list of permitted business activities. Simply choose the one that best suits your business, ask help from an expert in company formation to help you decide which kind of company that is appropriate for you.
Step 2 – Reserve your company name
In this step, you need to keep it in mind that it is forbidden to use offensive words, company names cannot contain religious references, or if you are using your personal name for your company- you are required to provide your both first name and last name. After you decide what will be your company name. You can now proceed to the next step.
Step 3 – Apply for Initial Approval
Once your company name is approved, you need to apply for an Initial Approval Certificate from Dubai Department of Economic Department (DED) that states that DED has no objection to you starting your Limited Liability Company (LLC). Your company will receive an entry from Commercial Registry once you get an approval. You need to get an approval for your business that will ensures you that you can continue to the next step. This is very important step.
Step 4 – MoA & LSA Agreement should be prepared
To formalize your Dubai LLC, you and your business partners need to draft and sign a Memorandum of Association (MOA). This MOA needs to be a formal translation, and needs to be attested by a Notary Public. As mentioned, for a professional service license you must sign a Local Service Agent (LSA) / Corporate Agent agreement with a UAE national. He will represent your business with regards to licensing and compliance, but has no further control or ownership. Potential side agreements can now be signed and attested as well. Please take note that the Emirati or UEA national will get 51 percent (%) of the shares. The 49 percent (%) will be among the foreign shareholders.
Step 5 – Find the perfect location for your company
One of the requirement for LLC company formation in Dubai is to have a business office. But the good thing about Dubai LLC is that it allows you to locate your office space any inspiring location throughout UAE. Once you found your perfect location, you need to get your rental contract attested by Ejari, the mandatory registry of tenancy contracts. To register with Ejari, take your initial approval certificate and other documents required by the Real Estate Regulatory Authority (RERA) to any authorized service center. For ordering the trade license. An attested rental contract is necessary.
Step 6 – Collect Your Trade License
After completing the steps above, you need to submit all the documents to the Dubai Economic Department. You need to make sure you attach all the required documents from the previous steps. If you met all requirements you’ll get a Trade License, Certificate of Incorporation, Memorandum of Association, and Share Certificates of your company.
Step 7 – After You Started Your Business
Congratulation! Your Dubai LLC is now organized. But before you celebrate, you still need to comply for the following:
- You need to fit out your office.
- You must register your employees with the ministry of Labour and General Authority for Pension and Social Security.
- Processing visas, labor cards and other legal documents.
- The LLC’s MoA is then published in the Bulletin of the Economy and Commerce Ministry.
- A bank account needs to be opened.
Required Document for LLC Formation
Below Documents are required for initial approval
- Applicant’s passport photocopy (including visa page copy).
- Registration application form from Dubai Economic Department.
- Trade Name Reservation Document.
- Photocopy of applicant’s naturalization identification for UAE nationals only.
- NOC letter from the applicant’s current sponsor (not applicable for GCC nationals).
- Approval issued by other Government authorities according to the type of business activity.
Below documents are required post initial approval
- Initial Approval receipt
- Tenancy contract for the Office/warehouse attested by planning department and civil defense department of Dubai municipality along with location plan.
- Original photocopy of the Memorandum of Association duly authenticated by the Notary Public.
- If the partner is an existing corporate entity in UAE or abroad the Memorandum of Association and the Commercial Register Certificate must be attested by UAE embassy / consulate or by a GCC state embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).
Approx Price for getting LLC Trade License
The cost for LLC license (with General Trading activity) in Dubai will be AED 26,990 approx. which is roughly $ 7350 for the first year. License renewal cost for next year will be reduced by AED 12,000 so Renewal cost will be AED 14,990 approx.
Here is detailed cost breakup for LLC formation.
|Commercial License Fees||AED 600|
|General Trading activity special fees (this amount is not applicable for other trading activities) Renewal Fees (General Trading special): AED 3000||AED 15000|
|Government Cultural Fees||AED 20|
|Administrative Fees||AED 50|
|Non-Arabic Trade Name Fees||AED 2000|
|Innovation Dirham||AED 20|
|Market Fees (5% of your shop/office rent) amount varies depends on tenancy amount||AED 250|
|Partner Accommodation Fees. If any of the partner paid his accommodation fees with any other license, you can approach DED to remove his fees after get issued the Payment Voucher||AED 1000|
|Public Waste related service fees||AED 1000|
|Trade Name Advertise Fees||AED 350|
|Service Improvement Fees (Commercial)||AED 400|
|Chamber of Commerce Fees||AED 1200|
|Ministry of Economy Fees||AED 2500|
|Local Fees – Trade License||AED 200|
|Smart Social Responsibility Platform fee||AED 1500|
|Commercial License Fees-Tejari||AED 200|
|Licensing Accommodation ALoowance||AED 700|
|Total License cost (approx)||AED 26,990|