A Limited Liability Company is an excellent choice of business type for investors who intent to develop a stable relationship in the local market. For this sort of business, two shareholders is the minimum requirement with a maximum of fifty shareholders to form LLC. These shareholders are restricted to their shares in the capital. In LLC, there are countless activities to conduct excluding money investments, insurance or any of its type.
A former law requiring a minimum capital for investors has been revoked in the UAE on August 10, 2009. Recently, the agreement between UAE and foreign investors is that the later can have utmost 49% share in the company and the remaining percentage goes to the UAE national/shareholders. The responsibility and liability in financial obligations are shared by the foreign investors, UAE national partners or a third party if there is. Additionally, a shareholder is allowed to transfer his share or part of it to another shareholder or to a third party.
The memorandum of Association in establishing LLC in Dubai requires the following;
- Trade Name of the company initially approved by the Licensing Department of the Economic Department
- Company Objectives
- Head Office
- Name of Shareholders (nationalities, addresses and places of residences)
- Amount of capital, documented statement of capital paid in kind and share of each
- Company managers’ names and nationalities (Not exceeding five in number)
- Distribution of profits and losses
After being notarized by a Notary Public of Dubai Court, the approval is given by the Economic Department. Once the endorsement has been granted, the company applies for entry to the Commercial Register. Once accepted, the company will then be registered in the Commercial Register and have its memorandum of association be issued in the Ministry of Economy and Commerce Bulletin. The license is then published by the Department of the Economic Development. With the license, the company is registered to the Dubai Chamber of Commerce and Industry.
We welcome your enquiries and concerns. Our friendly business consultants look forward to assist you.