Limited Liability Company Setup in the UAE

Synergy News   •   Aug 22, 2017

 

One of the most common forms of an onshore or also known as mainland business setup is a Limited Liability Company (LLC). Synergy Group focus on the requirements and procedures for establishing a LLC under the Commercial Companies Law (CCL), as LLCs are currently the most frequent type of corporate entity used by foreign investors in the UAE.

CCL is the main legislation governing the setting up of companies and carrying on of business in the UAE. Under article 22, all UAE registered companies must have a local majority holding with at least 51% of their share capital being held by UAE nationals, subject to certain permitted exceptions.

Therefore an LLC setup in the UAE can be formed with 49% shareholding of expatriates whereas 51% shareholding has to be in favor of a local UAE resident or by the use of a Corporate Nominee arrangement that is available via Synergy Group.

For those intending to operate business in the UAE there are two main concerns:

  1. Selecting the appropriate business organisation from the types of company recognised under the CCL.
  2. Obtaining the necessary trade licenses and governmental approvals.

What are the benefits of a LLC company formation?

Establishing an LLC in UAE offers seamless access to the wider Emirates economies:

  • While foreign equity in the company does not exceed 49%, profit and losses can be shared at a ratio different from the share capital
  • 100% tax free
  • 100% repatriation of profits and capital
  • UAE LLC offers unrivalled access to the wider UAE economy
  • No specific minimum capital requirements
  • The investor becomes the partner in the company
  • The investor gets the investor visa under which he/her enjoys the investor’s status in the Emirates along with his/her family
  • The investor has the option to commence branches
  • The investor can manage the business without the day-to-day interference from the local partner
  • The assets and capital created will be in the name of the company and not in the name of the local national partner
  • Few activities are restricted
  • Easy to open global /local corporate bank accounts

We provide the following services in association with LLC setup in the UAE:

  • Drafting and detailed corporate documentation (MOA, POA, AOA etc.)
  • Getting approvals and clearances from various Government departments
  • Fulfill obligatory management protocols for LLC business setup in UAE
  • Account maintenance and verification for company setup in the UAE
  • Provision of appropriate level of man power where required
  • Company registration amendments
  • Business plan review
  • Organising exclusive meetings with authorities
  • Renewal of License
  • Assist in identifying suitable office space. Note Synergy has its own business centre located in Business Bay, Dubai offering serviced offices.
  • Offering full spectrum support service.

Are you thinking up setting up on onshore company and need advice? Contact Synergy Group for a free no commitment consultation via email info@synergy-gulf.com or call +971 4 563 7302.

By | 2017-11-27T15:10:09+00:00 September 7th, 2017|Startups|