LIMITED LIABILITY
COMPANY (L.L.C)
A Limited Liability
Company is a legal form
of business offering
limited liability to its
owners. It is a hybrid
business entity having
characteristics of both
a corporation and a
partnership. It is often
more flexible, the
owners have limited
liability for the
actions and debts of the
company, and it is
suitable for smaller
companies with a single
owner. The primary
corporate characteristic
is limited liability
while the primary
partnership
characteristic is the
availability of
pass-through income
taxation.
Advantages
Limited
Liability Company is
well recognized business
structure in Dubai. With
this kind of business
structure, the investor
(expatriates) will hold
49% shares and the UAE
national will hold 51%
of shares. These UAE
nationals will be a
partner in your
business. Nominee
arrangement is normally
made with UAE national
to hold these mandatory
sales in his name in
favor of expatriate
partner. These will
provide effective total
control to manage the
company and enjoy all
its benefits and
liabilities.
The L.L.C. shall have
specific activities as
per classification made
by the Department of
Economic Development,
Dubai. Only one category
of activities are being
given to a company. The
company cannot have
multiple activities
except for General
Trading Licenses. L.L.C.
is perhaps the only type
of entity available for
trading and
manufacturing concerns.
Requirements
|
Obtain initial
approval for
name and
activity from
the Department
of Economic
Development and
the Chamber of
Commerce. |
|
|
Draw up
company’s
Memorandum of
Association and
have it
notarized from
Dubai courts or
respective
Emirates. |
|
|
Capital
certificate to
be obtained from
bank for the
required capital
deposited in to
the company’s
account. |
|
|
Submit
application and
initial approval
along with
notarized copy
of Memorandum of
Association,
capital
certificate,
tenancy contract
etc., to the
Department of
Economic
Development. |
|
|
After scrutiny
by the legal
department, the
company will be
entered in the
commercial
register and
have its
Memorandum of
Association
published in the
Ministry of
Economy and
Commerce
Bulletin.
License will
then be issued
by the
Department of
Economic
Development or
the
Municipality. |
It would take approx.
2-3 weeks to complete
formalities.
|
