Limited Liability Company

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Limited Liability Company in the UAE

Foreign investors considering starting a business in the UAE first have to decide on the best structure for their company. For the majority of businesses looking to establish themselves onshore – rather than “offshore” within a free zone – that means creating a limited liability company (LLC).


All onshore businesses within the UAE are required to be licensed by the Department of Economic Development (DED) and are governed by the UAE Commercial Companies Law (CCL). The DED not only issues all licenses for LLCs, but it also classifies and regulates the types of economic activities that can be undertaken.


Why choose an LLC?

Opting for an LLC structure offers plenty of incentives to foreign investors. Unlike free zone companies, an LLC does not face restrictions on where it can trade within the UAE. That means the LLC can choose to trade anywhere within the UAE – free zones included – and the GCC.


An LLC also does not face restrictions on real estate ownership, or on the number of visas that can be obtained for its employees. On top of that, an LLC does not have to pay the standard 5% customs duty on imported goods, and there are no minimum share capital requirements.


Operating an LLC also allows the business owner to choose from a vast array of business activities. Unlike within a free zone, where business activities may be limited to those related to a specific sector or industry.


Unlike a foreign branch office [link] or representative office [link], which are extensions of their parent company, an LLC is a separate legal entity from its foreign owner. An LLC also has the advantage of being able to conduct business with federal and local governmental bodies without the involvement of a commercial agent or national agent.


Choosing a Local Partner

Foreign ownership restrictions dictate that a UAE-based LLC must have a local partner who owns at least 51% of the LLC’s shares. This local partner can either be a UAE national individual or a corporate entity 100% owned by UAE nationals.


What some foreign investors struggle with is choosing the right local partner. Passing over the majority share of a business can be unnerving, especially when the business landscape and legal restrictions of the country are unfamiliar.


Which is where Fusion Middle East comes in. Offering a trustworthy and transparent service, we are the local partner you can rely on to ensure your new business in Dubai is set up according to all local rules and regulations.


With a wealth of local knowledge and extensive expertise, we provide you with all the support and guidance you need as you set up in Dubai while offering an array of essential services, including PRO services [link] such as corporate services [link] and visa services [link].


We leave the day-to-day running up to you, making sure all relevant paperwork is filed correctly so that your new business in Dubai abides by the law of the land. We give you the opportunity to thrive, by providing the support you need to succeed.


To find out more, contact us today on  00 971 4381 7333. Arrange your free, no-obligation consultation and you will discover why Fusion Middle East should be your local partner of choice.

Contact us today for a free, no obligation consultation
contact us

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