LLCs are the most common way of going about starting a company in Dubai. To start with, LLC, or limited liability company is a business organization that combines the traditional aspects of any corporation with a few alterations to the company structure. LLC owners are not responsible for the financial liabilities and give maximum legal ownership of the company. Because of this, you also have more personal ownership of your personal assets in case something goes wrong with the business and also involves less paperwork that goes with corporations. There are many other advantages to having an LLC such as Federal tax exemptions, flexibility in the number of members operating, protection from lawsuits due to limited liability.
There are certain steps that you need to take to make LLC company registration in Dubai possible. Here is the complete guide to forming your very own LLC:
- Select your region: Firstly, make sure you are setting your LLC in the city or state where you reside. For example, if you live in Dubai, then it would be a good idea to build your LLC there instead of Abu Dhabi. Also, make sure you are aware of the region’s laws when forming an LLC. Some countries and cities may have different laws and criteria to be eligible for forming an LLC.
- Know the cost of setting up a LLC. In cities like Dubai, the average cost of setting up an LLC is anywhere from AED 25,000 to 30,000. So before going about such a venture make sure you have the appropriate capital to spend.
- Naming the LLC. While paying for setting up the LLC, you will be expected to pay a standard amount for registering your LLC under a name that you can attain ownership for so it cannot be re-used by anyone else.
- Registering your company with the Department of Economic Development. This is very important as it lays the foundation for verifying your company as a registered legal property that can do business. You also have to submit the appropriate documents to finalize the registration procedure.
- Lastly, after the corporation has been registered, it’s finally time to register the members of the LLCthrough the Ministry of Labor and General Authority for Pension and Social Security. For more information about the procedure, you can visit the website online regarding company formation and registration.
Because of its popularity, LLC company registration has been one of the go-to methods for anyone looking to have a business in Dubai. Using the steps above, there is little reason not to invest in this potentially profitable business structure.