The limited liability companies are the most popular forms of business in Dubai, even though there are high costs of registration and a rather strict policy regarding the composition of it. It’s a form of business preferred by the entrepreneurs who wish to have a long term presence on Dubai’s market.
The foreign companies willing to open a limited liability company in Dubai must know that 51% of the shareholders must be local members and only 49% can be foreign participation.
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The capital share
The minimum share capital for setting up a limited liability company in Dubai is 300,000 AED and it may be in kind or cash. The liability of each member of the company depends on the owned shares.
The limited liability companies (LLC) in Dubai cannot perform activities in the following areas:
– banking,
– insurance
– money investments.
Steps for registering a company
Certain steps have to be followed before opening a limited liability company in Dubai. First of all, the name has to be approved by the Licensing Department of the Economic Department. Only if the name is not a duplicate or too similar to another, it can be registered.
The memorandum of association is forming the base of every type of company. It contains its name and address details regarding the founder(s) and details regarding the amount of share capital. It has to be signed by the founders and notarized by a public notary in the Dubai Courts.
Another step is receiving the approval from the Economic Department and submitting the necessary documents at the Commercial Register.
The memorandum of association is published in the Ministry of Economy and Commerce’s Bulletin after registration with the Commercial Register.
Licenses for starting the activity
The license of activity is then released by the Economic Department. There are three forms of licenses:
– commercial (for trading activities),
– professional (for services, artisans, professions, craftsmen),
– industrial (manufacturing services).
The last step for setting up a LLC in Dubai is registering the newly formed company at the Dubai Chamber of Commerce and Industry.
Here are the necessary documents for registration:
– the copy of the license,
– the authorized signatures from the special card of signature (released by any Dubai Chamber subsidiary based on the passport of the authorized persons),
– the copy of the memorandum of association,
– the fee for registration (if it wasn’t already paid at the Department of Economic Development along with the license fee).
Only if the above steps are completed, the company may begin the commercial activities.
