Showing posts with label
What is an LLC company? Business in Dubai.
Show all posts
Showing posts with label
What is an LLC company? Business in Dubai.
Show all posts
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.
------------------------------------------------------------------------------------------------
Related Pages
------------------------------------------------------------------------------------------------
BUSINESS SET-UP IN UAE
------------------------------------------------------------------------------------------
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
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
--------------------------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------------------------
Related Pages
--------------------------------------------------------------------------------------------------------
Free Trade Zones in UAE
---------------------------------------------------------------------------------------------------------
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
