Everything You Need To Know About LLC Management In the UAE
If you are venturing into the world of business, you must be prepared to multitask. To lay the foundation of your company abroad, you need to focus on two primary things. One of them is the development and marketing of your brand. The other most crucial procedure is legal compliances, management and approvals.
When you are deciding to set up a business in the UAE, you will come across a plethora of options. LLC has been the most preferred business set-up approach adopted by many successful players. Here are a few pointers to help you understand LLC and its management in the UAE.
What is an LLC?
An LLC or Limited Liability Company is a legal business structure that is authorised by the state. Businesses opt to register as LLCs to limit the personal legal liability of their owners.
Thus, LLCs can be thought of as hybrids between corporations and partnerships. In Dubai, foreign investors can hold up to 49% of the shares in an LLC, while the rest must lie with a UAE national.
What are the Advantages of Setting Up an LLC?
LLCs are the most preferred business structures in the UAE. Naturally, multiple advantages and quick set up make them the best choice for business enthusiasts.
Here are some of the top advantages of registering as an LLC:
- You can register an LLC with a minimum of two shareholders, and you can include a maximum of fifty shareholders.
- An LLC can undertake business across most sectors in the UAE, excluding only insurance, banking and investments.
- There is no compulsion to hire a Company Secretary.
- There is flexibility in the distribution of profits. This means that profits need not be distributed in the same proportion as the shareholding.
- LLCs have to pay 0% tax, i.e. they are tax-free. You will be free from VAT, Corporate and all other forms of taxes.
- There are no bars on minimum capital requirement. So, you can start small and dream big!
Important Factors in Setting Up an LLC
LLCs are budding entrepreneur’s stepping stones to building a business in the UAE. It is widely preferred due to the flexibility they offer. Moreover, you don’t need huge starting capitals as well as you can save a lot on taxes!
Now, let’s flip through a few basic procedures to follow before you get started:
The UAE’s Commercial Companies Law (CCL) guides and regulates the functioning and legalities of any foreign business. You must first decide on the type of business and industry you wish to step in. Then, according to legal compliances, find authentic partners and decide on shareholding.
Once you have finalised your company name, it’s time to fill in applications and get approvals. Setting up an LLC requires mandates from the Department Of Economic Development (DED).
On getting initial approvals, you can look up office spaces to set your base. Further, you need to notarize a Memorandum of Association(MOA) along with other shareholders in the firm. Here, you must ensure that all your details and documentation comply with the regulations.
Once all documentation is sorted and necessary notaries are signed, you can approach the DED to get your commercial license. On receiving your trade license, you are all set to commence your business operations.
Managing LLCs Now Made Easy
Laying strong legal foundations and having a support base in the UAE are the starting points for a successful business. With complete assistance from local experts, the journey to setting up an LLC in the UAE has been simplified. You can now skip the queues at government departments and get all approvals in no time!
Marque Way has trained consultants to get your business going in the UAE. So worry not and move into your new LLC office with ease!