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In its simplest definition, a Limited Liability Company in UAE (LLC) is a business venture which is commercial in nature with a maximum of 50 shareholders.

An LLC is the easiest legal vehicle for expatriate residents and foreigners to set up a new company in the UAE. Unsurprisingly, it is also the most popular and commonly chosen route.

Understanding the basics of LLC formation in the UAE will make things simpler and speedier.

Process & Paperwork of LLC In The UAE
Formation of limited liability company in UAE follows a simple, systematic process
  • Identify a business activity
  • Register the trade name
  • Apply for initial approvals
  • Draft Memorandum of Association (MoA) and other agreements
  • Select a location, choose a workspace
  • Apply for other government approvals
  • Submit documents and pay fees
  • Activities and trade name
  • Falling under industrial, commercial, professional, tourism, agricultural and occupational, the UAE offers more than 2,000 business activities, and the LLC will indicate chosen business activity. You are also allowed to form an LLC company with multiple business activities, subject to approvals.
  • The trade name of your new business must reflect your chosen activity/ies, and it must get approved. Approval is subject to the trade name not being in use or registered previously, and its observance of public morals and the public order of the UAE. When approved, the trade name is followed by the acronym LLC.
  • In some instances, a trademark needs to accompany the trade name. In the emirate where your business is located, the department of economic development (DEC) will approve and register your trade name. Trademarks are registered at a federal level, by the Ministry of Economy. Our teams are professional and proficient at what they do, be it handling a query or getting answers to all your questions.
Initial and Final Approvals

An initial approval simply means the UAE Government has no objection towards your business being established in this country. It also allows you to proceed with the next steps of starting an LLC in the UAE. However, an initial approval does not grant you the authority to practice the activity or run the business, yet.

Some business activities may require additional approvals from local or federal government entities. These are related specifically to activities under the umbrella of legal affairs, security, financial securities, and commodities.

There are several steps associated with LLC company formation in the UAE

  • Documentation
  • Attestations
  • Lease agreements
  • Payment of fees.

Once these tasks are completed, the issuance of a license allows you to start running your business.

Our long and continuous experience means we are not only equipped to do everything on your behalf, but are extremely efficient at doing so.

Documents & Attestations

Setting up an LLC in the UAE is the most common form of doing business here. It is also the easiest and most flexible, because its legal structure can accommodate any number of shareholders between up to 50. These shareholders can belong to different countries of origin, or have citizenship from almost any country in the world. (According to changed laws, it is not obligatory any more to involve UAE nationals in the formation of an LLC in the UAE). Further, each shareholder’s liability is limited to their shares in the business capital, even with differential profit-sharing arrangements.

To finalise LLC formation in the UAE, all shareholders and their specific shares and roles in the new company along with other details have to be included in a notarised Memorandum of Association (MoA).

Typically, LLC formation documents that must accompany the MoA are

  • Articles of Association (AoA)
  • Certificate of Incorporation
  • Board Resolution
  • Power of Attorney (PoA)
  • Corporate documents that are translated into Arabic will need to be attested by the Ministry of Justice.

Each shareholder will also have to submit personal documents like

  • Copies of passports and visas
  • Bank statements and bank reference letters, as required.
  • If you are already a UAE resident, you will need to get a No Objection Certificate (NOC) from your current sponsor or employers.
  • If one or more shareholders reside outside the UAE, their personal documents will have to be attested and notarized from the home country, and re-attested at the UAE Ministry of Foreign Affairs.

Submission of all stipulated documents will allow you to move to the next step of leasing (or buying) office space before you can begin operating your LLC in the UAE. In Dubai, the lease agreement will have to be registered with Ejari, the government portal for property management.

Advantages of limited liability company in the UAE

  • Flexibility in number of shareholders, up to 50
  • Liability of each shareholder limited to his/her shares in the company’s capital
  • Ability to trade anywhere in the UAE (including 50 plus free zones) and the GCC region
  • Unlimited number of work visas
  • Multiple choices in renting or buying office premises
  • 100% ownership by foreign shareholders

Why does the selection of the right business consultants matter?

When starting an LLC in the UAE, the most important thing is selecting an experienced business consultant. They will ensure that your  licensing and other tasks like accounting, bookkeeping, and bank account opening are executed without delay and mistakes. This is crucial because choosing a substandard agency to save a small amount of money can lead to significant trouble. The rules and regulations are complex, and without the right knowledge of packages, you may lose a significant amount of money during renewal or liquidation, etc.

How 3A Global Corporate Services Provider Can help Your Business?

Formation of an LLC in the UAE requires an experienced and talented pool of professionals. We have 16 years of experience in company formation  in the UAE. Feel free to contact us for expert advice.

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