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Limited Liability Company

LLC

Limited Liability company setupIn 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 most cities of UAE, capital deposit rule has been cancelled. i.e. Limited Liability Company can be formed without Bank Deposit Certificate and Auditor Certificate. 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. Distribution of profit (loss) can however be in ratio other than share capital.

Documents required for Initial Approval

  • Registration and licensing application, as well as proof of reserved trade name.
  • Photocopy of applicant's passport (together with residence permit / visa details for non-GCC states nationals).
  • Photocopy of applicant's naturalization identification for UAE nationals only.
  • No-objection letter from the applicant's current sponsor for non-GCC nationals.
  • Photocopy of the director's passport, and no-objection letter from the director's current sponsor.
  • Permission from the court to practice business, for applicants under 21 years.
  • Approval issued by other Government authorities according to the type of activity.
  • The Company's Board of Directors resolution to subscribe to the new company if the partner is an existing corporate entity in UAE or abroad (the resolution 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).

Documents required after getting the Initial Approval

  • Initial Approval receipt
  • All documents submitted before in order to get the Initial Approval.
  • Photocopy of office lease including the plot number.
  • Original photocopy of the Memorandum of Association duly authenticated by the Notary Public.
  • Contract of Limited Liability Company
  • 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).

The following are the steps involved in the formation of an LLC.

  • Selection of company name
  • Approval of company name from licensing department of the economic department
  • Drawing up of company's Memorandum of Association
  • Attestation of Memorandum of Association by a Notary of Court
  • Inspection & registration of office space of company
  • Getting approval from the economic department for entry into the commercial register
  • Once approval is granted, the company will be entered in the commercial register and have its Memorandum of Association published in the Ministry of Economy and Commerce's Bulletin. The license will then be issued by the Economic Department.
  • Registration of the LLC Company in Chamber of Commerce and Industry

The approximate cost for setting up a LLC company in UAE is between AED 27,000/- to AED 50,000/- depending upon the type of license and facility selected.

GBS will be able to help you incorporate your business in UAE. Our dedicated teams will help and support you right from preparation of relevant documents to obtaining license.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.