How to set up a business in UAE by forming LLC?
One of the prime locations for setting up businesses around the world is Dubai, due to various facilities the city offers in the domain of finance, trade, and ease of doing business. Dubai is known for providing the best ecosystems for starting or opening a branch/franchise. The Absence of personal tax in Dubai makes it extremely popular for business setup in Dubai, equally for expansive businesses and startups. Also, an LLC or Limited Liability Company can conduct all activities in the region as the rule of the land, making it exceedingly popular amongst startups or prospective franchise holders. Through this step by step guide, you will be able to get prepared to establish your business setup in Dubai by forming LLC in Dubai, provide you are prepared with all the required documents.
What Are the Pre-requisites of an LLC and Why It?
What makes LLC structure extremely popular amongst startups is that a minimum of only two shareholders is required for setting up an LLC. The maximum number of shareholders in an LLC can reach up to 50. Although, as per the rules, 51% shareholding of the firm should lie with a UAE national.
Provision for setting up a single partner LLC is also there offered to only UAE or GCC National.
For carrying out business operations legally as an LLC in Dubai, owners need to incorporate themselves and obtain a license from the Department of Economic Development, or DED.
The 8 steps ultimate guide:
Determination of operating zone and structure:
Step1: Firstly, you have to determine in which zone you wish to establish your company/ firm/ franchise. The options are free zone and mainland/onshore. Then you have to figure out, what type of license you wish to seek. There are three types of licenses offered by the DED- Industrial, Professional, and LLC. The majority of the owners go for the LLC license due to the numerous benefits it offers.
Finding local sponsor:
Step 2. After choosing the license, you need to find out a local sponsor, or partner, or agent, which is though not compulsory but will reap numerous benefits for the business.
Determining your business operations:
Step 3. You need to determine which type of business activity you are going to be associated with. If you face a problem in that, you can determine from DED directly or go for a consultation which provides UAE company registration services.
Filing up legal form, if required:
Step 4. After determining that, you need to fill out a legal form, in which particulars about the business/ firm need to be filled out. UAE company registration service providers can help you out in that.
Choosing your trading name:
Step 5. Choosing a trading name is very important for setting up a business cycle in Dubai. The name should be relevant to the services your firm is going to render.
Determining the minimum investment requirement and getting initial approval:
Step 6. Identify if your business needs a minimum investment, although it is not obligatory for all. Then you have to begin with initial approvals, for which you have to visit one of the service centers.
Finalization of address and Signing MOA
Step 7. Depending upon the authorized form of the business, an MOA i.e. Memorandum of Association or LSA i.e. Local Service Agent agreement /local support needs to be generated and signed. The finalization of the physical address of the firm is also required.
Finalization, review, and submission:
Step 8. Make sure that you don’t require submitting any additional documents or getting approvals. After you are ascertained you have to submit all the documents and settle the payments. For acquiring a trade license you need to pay the amount within 30 days of receiving the voucher, and in case of non-payment for six months, the transaction is canceled.
Role of NSKT:
NSKT is one of the pioneer firms in the UAE, which offers high-quality company setup services in the UAE. Right from review to assistance, a team of a highly skilled and experienced team of professionals we help in every domain of company establishment. We at NSKT offer 24X7 support to our clients, in all their woes and problems. Through our vast experience in our domain, we offer support and guidance at every step, which helped us develop a long list of satisfied clients from across the globe.