Limited Liability Company and Professional License in Dubai

Limited Liability Company (L.L.C)

A Limited Liability Company (L.L.C) is a recognized legal company formation structure in Dubai. The local sponsor will usually hold a 51% stake in your company and you will hold the 49% stake in the company. There are some business activities such as banks or money-exchange firms that require a higher percentage of holding by the local UAE national sponsor and these are dictated by the Dubai authorities from time-to-time.

The role of the Local Sponsor in a Dubai LLC

In a Dubai LLC or Dubai Limited Liability Company a local UAE sponsor is therefore a partner in your business. In technical terms he is a director on your company's board. However, this does not mean that you do not have management control of your Dubai business. There are a lot of businesses in Dubai where the local UAE sponsor plays an active role in the day-to-day running of the business for a percentage of the profits.

Silent Partner

However, a larger portion of Dubai Limited Liability Companies use the local UAE sponsor as a "silent partner." In this arrangement, the local UAE sponsor is usually paid an annual "sponsorship fee" in return for giving up management control of the company to the foreign investor. However, legally, the local UAE sponsor still holds a majority stake in your business. Dubai Professional License
A Dubai Professional License or Dubai Services License is a type of company formation structure in Dubai whereby the foreign investor or foreign owner has 100% ownership of the company. It is compulsory to appoint a local UAE sponsor for this type of company also, with the only exception being that the local UAE sponsor does not own any equity in the company.

Preferred Method with 100% Foreign Ownership

A Dubai Professional License is the preferred method of incorporation for several businesses where the structure of the business and the activity of the business are allowed by the Dubai Government. If you own 100% of your company, it brings security to your investments in Dubai. This type of Dubai company structure and Dubai company formation is limited to only certain business activities.
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Related Pages
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BUSINESS SET-UP IN UAE

+ General Trading License in Dubai (Five Minutes Procedures)

+ How to Set up a Business in Dubai?

+ Advantages of Setting up a business in Dubai

+ LLC Formation in Dubai

+ Management Skills Placement Test for Consulting License in Dubai
+ ദുബൈയിലെ ബിസിനസ് സാധ്യതകള്‍
+ Free Trade Zones in UAE

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Are you planning to Set-up your business in Dubai? Call us for Setting up new business, LLC Formation, Amendment in existing license, PRO Service and Translation. +971 55-273 2295, 055-345 7829, 04-239 1302 or mail your queries to visaprocess.ae@gmail.com

LLC Formation in Dubai

How can I set-up a Limited Liability Company (LLC) in Dubai? What are the procedures of setting up an LLC Company in Dubai?


Instant licenses take less than five minutes for issuance and it is one of the most popular categories among investors. The instant license issued in a single step without the need for either a memorandum of association or an existing location for the first year only. read more

Limited-Liability Company (LLC) 

In a limited-liability company, the minimum number of shareholders is two and the maximum is 50. The liability of shareholders is limited to their shares in the capital. The company may carry on any type of activities except insurance, banking, or money investment. In UAE, The minimum capital requirement law was abolished on 10th August 2009. The memorandum of association must include the following:

Trade name of the company, its objectives, head office, duration, names of shareholders, their nationalities, addresses, and places of residence; and Amount of capital, share of each shareholder, and a statement of capital paid in kind (if any), names and nationalities of the company managers, distribution of profits and losses which may not necessarily be in the same proportion as the capital, and the adopted method of notification.

In Dubai, Capital Deposit rule has been cancelled. i.e. Limited Liability Company can be formed without Bank Deposit Certificate and Auditor Certificate. In Abu Dhabi, minimum capital requirement is Dh150,000. The manager of the company will be allowed to operate the account as soon as the incorporation is completed. The Manager of the company can be more than one and he/they shall have all administrative and financial powers. A shareholder may transfer his share in the company or part of it to another shareholder or to a third party. Management is handled by no more than five designated managers, who are not necessarily members of the company. Non-UAE nationals may own up to 49 percent of an LLC.

In distribution of profit and loss, foreign investor can have 80% and 20% local UAE sponsor.

It is imperative that each limited-liability company appoints auditors to satisfy the requirements of the Commercial Companies Act. The law does not permit this form of company to issue share certificates. Evidence of ownership in the company is related and evidenced by the percentage contributed, assigned, or transferred in the share capital.

Silent Partner
A larger portion of Dubai Limited Liability Companies use the local UAE sponsor as a "silent partner." In this arrangement, the local UAE sponsor is usually paid an annual "sponsorship fee" in return for giving up management control of the company to the foreign investor. To prepare your LLC Agreement call +971 55-273 2295, 055-345 7829 read more

Steps of forming a Limited-Liability Company (LLC)

 Name reservation from Department of Economic Development (DED) or Tasheel Centre at Al Tawar Centre, Qusais. Fees: Dh741 including service charge. Foreign/English words and short words/Abbreviation will be charged extra fee of Dh2000 per year at the time of license renewal. First time fees should be paid along with first license fees.

Trade Names that cannot be reserved: Name of country, Name of Continent, Famous regions and Towns, Colour (blue, red etc.).

 Initial Approval for activity from Department of Economic Development (DED) or Tasheel Centre. Initial approval fee Dh300 to be paid at DED.

 Documents required for initial approval: Filled form, Passport Copies of Partners, Naturalization book's (Jinsiyya) copy of Local Partner, No Objection Letter from the sponsor for expatriate partners (NOC is not required for visit/Tourist visa holders and their visa copy should be attached).

Some activities require initial approval from concerned departments (eg. Municipality, RTA, National Media Council etc.)

 Preparing Memorandum of Association (LLC Agreement)

 Attestation of Memorandum of Association from Notary Public. As per the new rule, the court agreement must be typed by legal translator or get seal and signature of the legal translator on the agreement if it is typed from normal typing centre.

 Tenancy Contract (It is suggested to contact the counter of the Planning Dept. of Dubai Municipality, at the Department of Economic Development, on Telephone No. 04-2020105, or the Municipality�s Telephone No. 04-2063788, before leasing the premises in order to ensure that it is suitable for the business). Get approval on Tenancy contract from Planning Dept. of Dubai Municipality at DED.

 Submit Initial approval, Name reservation certificate, Attested Memorandum & Tenancy Contract at Department of Economic Development.

 Payment voucher will be issued same time or can be printed from DED Website after two days.

Special approval required for certain business activities from the concerned authorities

Tourism CompaniesFor Inbound Tou rism Dh100,000 to be deposited in Bank
For Outbound Tourism Dh200,000 to be deposited in Bank
These deposits are irrevocable till the license cancelled.

Travels
For Travel Agency Dh100,000 to be deposited at Department of Tourism & Commerce Marketing. This deposit is irrevocable till the license cancelled.

Building Contracting CompaniesFor Building Contracting Company License, Dh10,000 to be extra at the Department of Economic Development when the license issued first time. Office area should be minimum 1500 square feet.
Engineering Consultants: Minimum office space 1000 square feet required.

General TradingFor General Trading License, Dh15,000 to be paid extra at the Department of Economic Development when the license issued first time.
Customs Broker
Dh50,000 to be deposited at Dubai Customs. This deposit is irrevocable till the license is cancelled.

RTA Activities (following fees to be paid for RTA initial approval)
Rent a Car: Dh5000  
Bus Rental: Dh1000 
Passenger Transport by rented Buses: Dh1000 

Telephones & Telecommunications Equipment Trading
Dh5500 to be paid at Telecommunications Regulator Authority (TRA). This is one time fee.

Security Service: Property guard & Surveillance Services, Party security & private guarding services
Initial approval from Department of Protective Systems, Dubai. Tel. 04-2048312

Oilfield & Natural Gas related activitiesInitial approval from Ruler's Court

Money Exchange Initial approval from Central Bank of UAE and Department of Protective Systems

Jewelry, Mobile SIM Card Trading, Stamp & Seal MakingInitial approval from Department of Protective Systems Car Wash License is issued only in locations where there is a petrol filling station. This will need an agreement with the said oil company to lease the space at their filling station. Other norms on environment protection and safety have to be followed as per the standards prescribed.

SupermarketFor supermarket, minimum 2000 square feet area is required.

Electrical Fitting Contracting: minimum 360 square feet office area is required.

Cafeteria/Coffee ShopMinimum 175 square feet kitchen area is required.

 To set-up your business, to prepare your DED related forms, court agreements and amendments, call: Qusais (Al Nahda-2): +971 55-273 2295, 055-345 7829
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Street Food Truck License in Dubai is controlled by Dubai Municipality

Only ready-made meals and fry-ups are allowed to be served by food trucks.

Get No Objection Permit from Permits and Applied Nutrition section at Dubai Municipality to conduct this activity.

The kitchen area in the vehicle must be suitable for the permitted activities. The floors, walls and ceilings should be made of smooth materials; they should be easy to clean, non-absorbent of water, fire-resistant, light-coloured, non-toxic and without cracks.

Food trucks must also provide appropriate ventilation and lighting.

There should also be a double sink for washing small equipment that is situated close to the preparation area.

It is also required to provide sufficient and appropriate places for storing one-time use packaging materials, and the equipment should be conveniently distributed inside the vehicle, so as to separate the various operations to prevent cross-contamination. It is not allowed to prepare raw materials, thawed meat, poultry and fish in the mobile truck.

The activity of food trucks should be limited to heating operations, simple barbecues and fry-ups for ready-made meals like burgers, sausages and French fries.

It is not allowed to clean and wash the vegetables in the mobile trucks, and all vegetables must be sorted, cleaned, sterilised and stored in clean covered containers outside the vehicle, in a licensed and secure place in order to avoid cross-contamination. 
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 DED Centers (Branches)
Head Office: Business Village
Near Clock Tower
Deira, Dubai
Tel:04-4455196

Tel: 04-4455006 (VIP Section)

Al Tawar
Al Tawar Centre, First Floor, Qusais, Deira, DubaiTel: 04-6013333
Dubai MallDeira, Dubai
Tel: 04-3827709TECOM Branch 
(To register licenses in TECOM area)
Dubai
Tel: 04-3754115

Frequently Asked Questions
Q: How many managers can be put in the Memorandum of Association?
A: Minimum one and maximum five. Article No 235 of the Commercial Companies Law states the following: "A LLC shall be managed by one manager or more, who shall be selected from the partners or otherwise, provided that they do not exceed five. Managers shall be appointed in the Memorandum of Association of the company or in a separate contract for a specific period or without limitation."

Article No 236 of the same law states that if a manager is appointed in the Memorandum of Association without limitation of a specific period, in such an event, the manager shall remain in the company for the duration of the company unless the Memorandum of Association provides for the possibility to remove the individual.
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Related Pages
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Free Trade Zones in UAE
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Are you planning to Set-up your business in Dubai? Call us for Setting up new business, LLC Formation, Amendment in existing license, PRO Service and Translation. +971 55-273 2295, 055-345 7829, 04-239 1302 or mail your queries to visaprocess.ae@gmail.com

General Trading License in Dubai (Five Minutes Procedures) Instant License in Dubai

How can I set-up a General Trading Company (LLC) in Dubai?

LIMITED LIABILITY COMPANY (LLC) Business Activity: General Trading Type of Transaction: Instance License (Now you can get General Trading License in Dubai within 5 minutes (Without court agreement and without Tenancy Contract). Activity Code 521904 License Type: Commercial Activity Description: Includes commercial firms engaged in importing, trading and re-exporting of any of the goods and products mentioned in details in trade category, except activities need special approvals. STEPS TO FOLLOW DESCRIPTION FEES IN AED Trade name booking at DED. Commercial Name Reservation certificate from DED Counter. DED Head Office is at Business Village near Clock Tower, Muraqabat. DED has many counters in different Tas'heel Centers. Documents required: Any one of the partners' passport copy and list of proposed names. Name Reservation can be completed same time (Dh741) 115.50 641 Initial approval: Type (BR1) form, get signature of the partners and submit at Economic Department (DED) Counter. Form can be filled from Typing Centre. NOTE: Presence of UAE national sponsor is must at the time of initial aproval. Attachments: Name Reservation Certificate, BR1 Form and Passport copies of partners, NOC from sponsor for expatriate partner who holds Employment Visa/Residence Visa. Visit/Tourist Visa holder can attach his/her visa copy. No need NOC for Partner/Investor visa holders. Instant license will be issued then and there after paying Dh 31500. The following procedures are required before you start applying for Partner visa and Employment Visa). At the time submitting Ejari and LLC court agreement, DED will issue another payment voucher of Dh570 mentioning Location change. + Payment Voucher Transaction Fee: Dh105 extra. + If you want to add Telephone / Fax / P.O.Box number in the license: Dh105 extra.  115.50 141.50 Electronic LLC Agreement (MoA) will be prepared by DED staff and attestation fee and other departments' fees will be shown in the final payment voucher. CAPITAL: You can write the capital amount in LLC Agreement as much as you want. No need to show Capital deposit certificate from bank. Notary will charge a small percentage at the time of attestation according to the Capital amount and number of partners. Standard capital amount is Dh300,000 out of which 51% (Dh153,000)should be allocated to National partner and remaining 49% can be divided among expatriate partners. If the expatriate partners are two, you can divide the remaining shares to 25% (Dh75,000) & 24%(Dh72,000). If the expatriate partners are more, you can increase the capital. A partner's share value should be Dh70,000 or more to apply for Partner Visa. Agreement Typing Charge 210 (Approx) All Partners or Attorney have to attend at Notary to sign the Court Agreement Attestation fee at the court (Notary Public) Make ready Tenancy contract of the office/shop and register through EJARI only system. EJARI can be prepared from authorized Typing Centre. (Ejari is required before you 215 for Ejari Submit the attested LLC Agreement (one original copy), BR1 form, Name Reservation Certificate, Initial Approval,  EJARI Registration Certificate, passport copies of partners and NOC for partners (if any), at any branch of DED. Payment voucher (Dh570) will be issued same time. Make payment at the counter and get the license. You can also pay using Credit Card/Direct Debit through DED website after issued the payment voucher. + Payment Voucher Transaction Fee: Dh105 extra. + If you want to add Telephone / Fax / P.O.Box number in the license: Dh105 extra.  Approximate fees for General Trading License at DED 31500

GENERAL TRADING INSTANT LICENSE COST BREAK-UP License Fees-Commercial 600.00 Initial Approval 100.00 Foreign Company Name Fees 2000.00 General Trading Special Fees 15000.00 Govt. Cultural Fees 10.00 Innovation Fees 20.00 Administrative Service Fees 50.00 Trade Name Advertisement Fees 350.00 Total Fee for Department of Economic Development-DED 18,140.00 Market Fees (Muicipality) 5000.00 License owner Accommodation Fees 1000.00 Public Waste Management Fees 1000.00 Service Improvement Fees 400.00 Total Fee for Dubai Municipality 7400.00 Ministry of Economy & Commerce Fees 3000.00 Smart Social Responsibility Platform Fees 1500.00 Total Fee for Ministry of Economy 4500.00 Local Fees - Trade License 200.00 Commercial License - Tejari 200.00 Total Fees for License 31500 Call us for your Business Set-up related services;  055 273 2295, 055-345 7829 ---------------------------------------------------------------------------------- Dubai reduces instant licence fee from Dh3,000 to Dh250 read more ---------------------------------------------------------------------------------- Walk-in Submission facility is available at DED Head Office, Business Village, Near Clock Tower, Deira. Appointment: If you want to save time, you can take online appointment to submit initial approval application at Economic Department (DED) Head Office near Clock Tower. How to make online appointment?: Create a new user account through MYID Website. You should have Emirates ID and Card Reader to complete the registration. After submitting required information, you will get a username and password. If you have difficulty in creating User Account, you can go to Tas'heel Centre (for DED Services) at Al Tawar Centre, Qusais. Fees: Dh50. Self service counters are available at DED Business Village Branch, near Clock Tower, Deira, and Emirates ID centers at Karama, Barsha & Rashidiya. + After creating the account, enter DED site and make appointment. Submit the documents at the selected DED branch. + After License issued, register with Dubai Chamber, which is there at the same DED building. Collect Registration Form from there, Fill the information, Put authorized signature, company stamp and submit at Dubai Chamber counter. Certificate will be issued same time. Payment already made at DED along with the Commercial License fees.  Documents required: Filled form,  Copy of Trade License, Partners List, Commercial Register (3 pages of trade license), LLC Agreement copy, Passport copy of Authorized Signatory and DED Payment Receipt of Trade License.  Chamber Certificate is required for Export & Import purpose, for Registration with various Government Departments and to expand business to other Emirates and abroad. professional license: Chamber certificate will not be issued for professional licenses. DESCRIPTION FEES IN AED Immigration Establishment Card (Application can be typed and submitted at AMER Center). Soft copy of Establishment Card will be sent to your e-mail ID. read more 572 Labour Establishment Card (Application should be typed and submitted at Tas'heel Centre). Soft copy of the Card will be issued same time. Plastic card no more available read more 2123 (Approx) SILENT PARTNER A larger portion of Dubai Limited Liability Companies use the local UAE sponsor as a "silent partner." In this arrangement, the local UAE sponsor is usually paid an annual "sponsorship fee" in return for giving up management control of the company to the foreign investor. But as a formality, we should allocate 51% share of the company to UAE National. If you want you can make a Side Agreement to protect your investment stating that the whole investment including sponsor's share belongs to you. This agreement cannot be attested by Notary. But you can get signed by the sponsor as a confirmation.   LICENSE RENEWAL: Commercial license is valid for one year. After expiry, 30 days grace period is there.  If not renewed within grace period, Dh200 fine per month will be charged at DED. At the time of renewal, no need to pay Dh15000 special fees of General Trading. Apart from the remaining fees, employee accommodation fees to be paid extra according to the number of staff. For Managers and Degree/PG level profession holders should pay Dh500 per head and for low level staff Dh300 per head. This amount should be paid every year. Partner: Dh1000, Supervisor: Dh500,Clerical Staff, Waiter, Labourer: Dh300 each.  + DED (Economic Department) Branches Head Office: Business Village Near Clock Tower Deira, Dubai Tel:04-4455196 Tel: 04-4455006 (VIP Section) Al Tawar Al Tawar Centre, First Floor, Qusais, Deira, DubaiTel: 04-601 3333 Dubai Mall Deira, Dubai Tel: 04-382 7709 Al Barsha Mall Branch Bur Dubai, Al Barsha 2, Street 23rd. Tel: 04-202 0429DED Timing: Saturday to Thursday 7:30am to 1:30pm + Website: www.dubaided.gov.ae DED Timing: Saturday to Thursday 7:30am to 2:30pm Call Centre: +971 4 4455555 + Website: www.dubaided.gov.ae   Click here to visit First Gate Youtube Channel ---------------------------------------------------------------------------------------------------- Are you planning to Set-up your business in Dubai? Call us for Setting up new business, LLC Formation, Amendment in existing license, PRO Service and Translation. +971 55-273 2295, 055-345 7829, 04-239 1302 or mail your queries to visaprocess.ae@gmail.com  -------------------------------------------------------------------------------------------- Related Pages ---------------------------------------------------------------------------------------------------- FAMILY VISA + Family Visa Dubai: Entry Permit Residence (Wife & Children) Expatriate Sponsor + Child's Visa Sponsored by Mother + How to sponsor your son above 18 in UAE + Visa Medical-Dubai + Visa Medical Test - Abu Dhabi + Certificate Attestation from India, UK, US... + Amer Business Centers (Dubai Immigration / Visa Service Centers) + GDRFA General Directorate of Residency and Foreigners Affairs Dubai Branch Locations + Emirates ID; New & Renewal PARENTS VISA + How to Sponsor Parents on Residence Visa in Dubai? + Parent(s) Visa Stamping After Entry-Dubai + Parents Visa Renewal HOUSEMAID VISA + Hiring Domestic Workers through TADBEER Centers in UAE BUSINESS SET-UP IN UAE + How to Set up a Business in Dubai? + LLC Formation in Dubai ESTABLISHMENT CARD + Immigration Establishment Card-New (Dubai) + Immigration Establishment Card-Renew (Dubai) + Labour Establishment Card (Computer Card)-UAE + Update Establishment Information at MOHRE EMPLOYMENT VISA + UAE Employment Visa Cost Estimate + UAE Employment Visa: Procedures at UAE Consulate in Thiruvananthapuram + Employment Visa Stamping After Entry-Dubai  + Designations (Labour Professions)-UAE Visa  + New Fee Structure for UAE Employment Visa / Work Permit + List of Tasheel Centers in Dubai + E-signature Card for Ministry of Labour Transactions + What is Labour Contract / Employment Contract? + യു എ ഇ തൊഴില്‍ വിസ നടപടിക്രമങ്ങള്‍; GAMCA മെഡിക്കല്‍ from India VISIT & TOURIST VISA + Tourist Visa-Dubai + Visit Visa - Long Term & Short Term (Single & Multiple Entry) UAE PCC-POLICE CLEARANCE CERTIFICATE + Police Clearance Certificate from Dubai (UAE) + Police Clearance Certificate (Dubai) for Person Staying Out of Country + Police Clearance Certificate (PCC) from India (Through Indian Consulate) + Legalization of PCC from UAE Embassy in New Delhi, India INVESTOR VISA + Investor / Partner Visa Requirements-Dubai + Freehold Property Visa in Dubai + Long-Term Investment visa for expat retirees + MOFA-Ministry of Foreign Affairs-UAE Attestation Centers EMIGRATION CLEARANCE + e-Migrate Online Registration, Emigration Clearance for Blue-collar Indian Workers and Housemaids