Limited-Liability Company (LLC)
Within a limited-liability company, the minimum number of
shareholders is two and the maximum is 50. The liability of shareholders is
limited to their shares in the capital. The company may carry on any type of
activities except insurance, banking, or money investment. In UAE, The minimum
capital requirement law was abolished on 10th August 2009. The memorandum of
association must include the following:
Trade name of the company, its objectives, head office,
duration, names of shareholders, their nationalities, addresses, and places of
residence; and Amount of capital, share of each shareholder, and a statement of
capital paid in kind (if any), names and nationalities of the company managers,
distribution of profits and losses which may not necessarily be in the same
proportion as the capital, and the adopted method of notification.
In Dubai, Capital Deposit rule has been cancelled. i.e.
Limited Liability Company can be formed without Bank Deposit Certificate and
Auditor Certificate. In Abu Dhabi, minimum capital requirement is Dh150,000.
The manager of the company will be allowed to operate the account as soon as
the incorporation is completed. The Manager of the company can be more than one
and he/they shall have all administrative and financial powers. A shareholder
may transfer his share in the company or part of it to another shareholder or
to a third party. Management is handled by no more than five designated
managers, who are not necessarily members of the company. Non-UAE nationals may
own up to 49 per cent of an LLC.
In distribution of profit and loss, foreign investor can
have 80% and 20% local UAE sponsor.
It is imperative that each limited-liability company
appoints auditors to satisfy the requirements of the Commercial Companies Act.
The law does not permit this form of company to issue share certificates.
Evidence of ownership in the company is related and evidenced by the percentage
contributed, assigned, or transferred in the share capital.
Silent Partner
A larger portion of Dubai Limited Liability Companies use
the local UAE sponsor as a "silent partner." In this arrangement, the
local UAE sponsor is usually paid an annual "sponsorship fee" in
return for giving up management control of the company to the foreign investor.
To prepare your LLC Agreement call +97150-7447833 read more
Steps of forming a Limited-Liability Company (LLC)
Name reservation
from Department of Economic Development (DED) or Ontime office at Business
Village near Clock Tower or Tas'heel Centre at Al Tawar Centre, Qusais.
Fees:Dh260 including service charge. Foreign/English words and short
words/Abbreviation will be charged extra fee of Dh2000 per year at the time of
license renewal. First time fees should be paid along with first license fees.
Note: Trade Names that cannot be reserved: Name of country,
Name of Continent, Famous regions and Towns, Colour (blue, red etc.).
Initial Approval for
activity from Department of Economic Development (DED). Click here for
Application Forms. Initial approval fee Dh110 to be paid at DED.
Documents required
for initial approval: Filled form, Passport Copies of Partners, Naturalization
book's (Jinsiyya) copy of Local Partner, No Objection Letter from the sponsor
for expatriate partners (NOC is not required for visit/Tourist visa holders and
their visa copy should be attached). If UID Number is not mentioned in the
Visit/Tourist/Transit visa, it has to be collected from Immigration Department
on payment of Dh130.
Some activities require initial approval from concerned
departments (eg. Municipality, RTA, National Media Council etc.)
Preparing Memorandum
of Association (LLC Agreement)
Attestation of
Memorandum of Association from Notary Public. As per the new rule, the court
agreement must be typed by legal translator or get seal and signature of the
legal translator on the agreement if it is typed from normal typing centre.
Tenancy Contract (It
is suggested to contact the counter of the Planning Dept. of Dubai
Municipality, at the Department of Economic Development, on Telephone No. 04-2020105,
or the Municipality’s Telephone No. 04-2063788, before leasing the premises in
order to ensure that it is suitable for the business). Get approval on Tenancy
contract from Planning Dept. of Dubai Municipality at DED.
Submit Initial
approval, Name reservation certificate, Attested Memorandum & Tenancy
Contract at Department of Economic Development.
Payment voucher will
be issued same time or can be printed from DED Website after two days (for some
type of business).
Special approval required for certain business activities
from the concerned authorities
Tourism Companies
For Inbound Tou rism Dh100,000 to be deposited in Bank
For Outbound Tourism Dh200,000 to be deposited in Bank
These deposits are irrevocable till the license cancelled.
Travels
For Travel Agency Dh100,000 to be deposited at Department of
Tourism & Commerce Marketing. This deposit is irrevocable till the license
cancelled.
Building Contracting Companies
For Building Contracting Company License, Dh10,000 to be
extra at the Department of Economic Development when the license issued first
time.
General Trading
For General Trading License, Dh15,000 to be extra at the
Department of Economic Development when the license issued first time.
Customs Broker
Dh50,000 to be deposited at Dubai Customs. This deposit is
irrevocable till the license is cancelled.
RTA Activities (following fees to be paid for RTA initial
approval)
Rent a Car: Dh5000
Bus Rental: Dh1000
Passenger Transport by rented Buses: Dh1000
Telephones & Telecommunications Equipment Trading
Dh5500 to be paid at Telecommunications Regulator Authority
(TRA). This is one time fee.
Security Service: Property guard & Surveillance
Services, Party security & private guarding services
Initial approval from Department of Protective Systems,
Dubai. Tel. 04-2048312
Oilfield & Natural Gas related activities
Initial approval from Ruler's Court
Money Exchange
Initial approval from Central Bank of UAE and Department of
Protective Systems
Jewelry
Initial approval from Department of Protective Systems
Supermarket
For supermarket, 2000 square feet area is required.
