Setting up a Limited Liability Company (LLC) in Dubai
Updated: May 15, 2019
The Limited Liability Company (LLC) is among the most widespread forms of business in the United Arab Emirates. In an LLC, two or more shareholders enjoy and are subject to limited liability over the products and profits of a business.
One advantage of having LLC company formation in Dubai is its relative flexibility as compared to other structures. The founders of the business can maintain complete control of management despite having only contributed 10 or 20 per cent of the total resources needed to form the business as a whole. The other investors are awarded with a share of the profit as well, but the division is not necessarily proportional to their investments.
In addition, shareholding expatriates can contribute as much as 49 percent to the invested capital for the formation of the company. The remaining 51 percent must be covered by a local UAE national. Shareholders can be as few as two or as many as 50 in this kind of corporate structure, and the liability of each shareholder is limited to the amount of their shares in the capital.
Most investors in the UAE opt for LLC company formation in Dubai, as this corporate structure allows foreign investors to hold the maximum legal percentage of ownership, and it grants the company a trading license coming directly from the government of the respective emirate where the company is located.