How do I Start an LLC in Dubai?
LLC formation in Dubai is the most popular business trend in the past few years in the UAE. Now that expatriates can enjoy 100% ownership of their ventures even in the mainland region, the numbers are sure to hit unprecedented figures.
Dubai’s advanced infrastructure, hassle-free resource availability, and the tax-free regime are just a few among the many reasons why you should start an LLC in this region. Moreover, business formation in Dubai becomes easier than ever when you connect with Shuraa’s experienced consultants that do all the heavy lifting for you.
What are the Steps to Start an LLC in Dubai?
Follow the steps mentioned below to set up your limited liability company in Dubai:
1. Finalize your Business Activities
Do you have a list of activities that you’ll carry out daily in the UAE once your LLC is up and running? If not, you need to create one and send the same to the Department of Economic Development (DED) for evaluation. The DED offers the flexibility to choose from over 2,000+ permissible activities.
Furthermore, investors can apply for external approvals in case any of the desired business activity isn’t covered by the economic department. However, you don’t need to worry about it when you collaborate with the business consultants at Shuraa that make LLC formation in Dubai hassle-free for you.
2. Reserve a trading name for your LLC
Trade name reservation is a critical step for an LLC company setup in Dubai. Business owners need to ensure that the trade name they wish to keep as their LLC’s official name should be unique, and not a gimmick of some other brand. Moreover, all the trading names mentioned in your list should be in line with the government’s naming convention protocols.
Your LLC’s name shouldn’t contain any derogatory terms or words that have any reference to a god or religion. Moreover, you need to use the full name of a person if you want that as your legal business name in Dubai. Note that investors need to pay an additional fee if they wish to use a foreign trading name.
3. Decide the Business Location
Where do you want to launch your LLC? Have you analyzed the various business zones in the UAE and how they are beneficial for your business model? All these things must be considered before finalizing your LLC’s establishment location. The best part is that you can now set up your limited liability company in the mainland region with complete foreign ownership.
You can get in touch with the concerned authority to check whether your business activities qualify for complete expatriate ownership. If yes, you don’t need to hire a local sponsor. All you need is a local service agent (LSA) who’ll help you apply for the business license, handle the paperwork, and assist with translation requirements too.
4. Rent an Office Space
It’s recommended to rent office space in the UAE because of several reasons. First, you don’t need to worry about hefty initial investments that you’ll require if you purchase a business property instead of renting one. Next, you have the flexibility to relocate as per your business requirements when you have rented space.
You can’t do the same when you have purchased office space because you’ll need to sell that first before making any other business decisions. Business owners can also sign up for a virtual office with Shuraa and launch their LLC remotely in Dubai. All you need to do is get in a sustainability contract with us, and that’s it.
5. Apply for the Desired Business License
You can apply for a trading license once you’re done with all the above steps. A business license is a legal permit that legitimizes your business activities and provides you the authority to operate, manufacture and sell on Dubai’s land. You need to submit all the required documents to the concerned authority for evaluation and wait for their verdict.
Business aspirants can add more activities to their business licenses by obtaining external approvals from the concerned governing bodies. The business experts at Shuraa help draft all the documents and forms needed for submission to the DED. We ensure that everything’s on track to avoid unexpected delays in business license approval.
6. Manage Visas and Open a Bank Account
You need to manage visas for yourself and your family, and that’s pretty straightforward when you’re aware of the procedure. You can also procure visas for your relatives and domestic workers. You’ll get the visa permits quickly if you have submitted the correct documents and there’s no other issue with your visa request.
The last step for LLC formation in Dubai is opening a corporate bank account in Dubai. The bank you choose should be reliable, secure, and beneficial for long-term collaborations. The legal advisors at Shuraa find the best banks for you after assessing your business requirements and monetary transactions.
Benefits of Forming an LLC in Dubai
1. Setting up an LLC in the UAE is affordable and has a low barrier to entry. You don’t need large initial investments to set up an LLC, and anything between AED 25,000 to AED 30,000 is good enough to establish your company.
2. You get additional financial security with an LLC. Investors can enjoy complete limited liability protection that separates the finances of the stakeholders and the company.
3. LLC company setup in Dubai is also beneficial because you can have multiple shareholders in your company. The minimum partner requirement is set to 2 and can go up to 50.
Documents Required to Open an LLC in the UAE
The UAE’s government follows a no-compromise policy when it comes to paperwork and documentation. This is done to offer a healthy and safe working environment to all the investors. The following documents are required for LLC formation in Dubai:
- Payment receipt of trade name reservation
- List of business activities
- Passport copy of the shareholders
- Entry stamp or visa page
- Passport size photograph as per the protocols (size, background color, etc.)
- Initial approval receipt and documents submitted previously
- Copy of the lease agreement signed by the Real Estate Regulatory Agency (RERA) in Dubai
- Duly attested Memorandum of Association (MoA)
- Approvals from other concerned government authorities
- Formal agreement letter with the local service agent
Launch your LLC Today!
Your decision to set up an LLC in Dubai is the right one, thanks to the lucrative business opportunities and supportive government norms. Now, all you need to do is consult with Shuraa’s company setup. Experts to simplify LLC company setup in Dubai. We take care of documentation, licensing, banking, and everything else for you at a nominal cost.