LLC company formation in Dubai

Are you in search to know about the LLC company formation in Dubai?

Let us see about LLC:

For a limited-liability company (LLC), the least number of shareholders required is 2-50 the maximum. The shareholder liability is limited to their shares in the capital.

The memorandum of association (MOA) must include the following:

• There should be the trade name of the company, its objectives, head office, address details with duration.
• Also the names of shareholders, their nationalities, address details band Amount of capital
• Share of each number of shareholder, and a statement of paid capital (if any),
• Names and nationality details 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.

There is something special about forming LLC in Dubai has a benefit that you do not need Bank Deposit Certificate and Auditor Certificate due to the cancellation of Capital Deposit rule. The number of managers in your company can be more than one among them he/she shall have the authorization of administrative and financial powers. When the incorporation of your company is completed and then your managers are able to operate the account.

In LLC a shareholder have their transactions of their share within the company or to the other shareholder or sometimes to the third party. Apart from that your company management can be managed no more than five designated managers and these persons are not necessarily members of the company. Even the non-UAE nationals can own up to 49% of an LLC.

In LLC the profit and loss distribution and also the foreign investors can have 80% and 20% local UAE sponsor.

Each LLC company will have their auditors to meet their requirements of the Commercial Companies Act and this law do not permit to issue the share certificates for the company. And also the company ownership is related and evidenced by the percentage contributed, assigned, or transferred in the share capital.

Local sponsor

Dubai Limited Liability Companies must have a local UAE sponsor who acts as a “silent partner”. The local UAE sponsor is usually pay a “sponsorship fee” on yearly basis in return for giving up management control of the company to the foreign investor.

First Phase: Initial Approval

• Documents like the Registration, license application and also the proof of reserved trade name.
• Photocopy of applicant’s passport
• For the naturalization identification UAE nationals applicants photocopy is required
• No-objection letter is needed from the current sponsor of the applicant for non GCC nationals.
• Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
• Authorization confirmation from the court to start business, for applicants under 21 years.
• The Company’s Board of Directors resolution are needed to subscribe for their new company if suppose the partner is an existing corporate entity in UAE or foreign (the resolution must be attested by UAE embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).

Second phase: After obtaining the Initial Approval

• Initial approval receipt
• To get the Initial Approval all the documents are submitted.
• Photocopy of office lease including the plot number.
• Original photocopy of the MOA recently authenticated by the Notary Public.
• Contract of LLC
• If there is local sponsor in UAE or foreign the Memorandum of Association (MOA) and the Commercial Register Certificate should be attested by UAE embassy