There are various factors that influence an individual’s decision on how to start a business in Dubai. Free zones, the growth of the emirate’s economy and the political stability are some of the factors that influence entrepreneurs on whether to move their operations into the city or not. The free zones of Dubai promise many incentives for corporate entities willing to move their operations to the city. The development of business in Dubai is attributed to the growing economy of the state.
In accordance to its corporate free zone, the capital requirements for setting up an LLC company in Dubai are lower than most of the other countries. Setting up an LLC business in Dubai is easy with the right planning and coordination from the attorney. The legal business community of the state facilitates and guides entrepreneurs and individuals in establishing their own legal business entities.
People wishing to establish an LLC in Dubai can choose to have a limited liability company (LLC) or a corporation. Limited Liability Company (LLC) allows more personal freedom for the owner, but at the same time has fewer restrictions and penalties compared to a corporation. Both options have their pros and cons but choosing to have an LLC is most preferred by many. A company formation in Dubai also requires the acquisition of a local business license and the payment of a five percent registration fee.
An individual or a corporate group may choose to set up an LLC in Dubai either on their own or through an agent. Through a licensed agent, foreigners can take advantage of the corporate laws of the emirate and benefit from their experience. An agent may be a UAE national or an independent contractor based in Dubai. In either case, an international commercial presence is not required. The only requirement for an LLC in Dubai is its capital and legal business documents.
Investors in Dubai have a wide range of available options when setting up an LLC. Many investors choose the incorporation of an international company through a licensed agent. This method is quite simple and convenient as investors need not provide their personal details to the agent directly. Upon approval by the Dubai authorities, an agent will transfer funds to the LLC’s account in Dubai. Thereafter, documents for the registration of the LLC are to be submitted to the local office of the Secretary of State with the necessary fees.
On the other hand, an independent contractor can open an LLC company formation in Dubai by obtaining the required documents and submitting them to the appropriate authority. When dealing with an independent contractor, investors should keep in mind that the process of incorporating an LLC in Dubai can be very complicated, as this task is not dealt with by agents. This can prove to be a problem for investors who do not have technical knowledge and experience in the matter. For investors without this kind of background, the option of paying a fee to an attorney to carry out the task of incorporating an LLC in Dubai may prove to be beneficial. Such a procedure requires that the agent involved in the transfer process pay a reasonable fee.
The formation of an LLC in Dubai also allows limited liability. Limited liability protects the owners of an LLC from being personally liable for the business debts of the LLC. For instance, in the case of an investment in shares, the shareholders of the business could be sued personally for losses. An LLC in Dubai however, provides business owners with the freedom to use their funds in any way they see fit. This therefore reduces the risk that an investor will personally be liable for company debts.
Limited liability guarantees to investors provide another benefit. For instance, in case of investments that produce stable profits for many years, but fail to produce returns in a short period of time due to factors beyond the control of the owner(s), investors have the option to convert their interests into foreign ownership. Through company formation in Dubai and registration of its operations in the absence of an actual office, foreign ownership of an LLC is not restricted.
Dubai Business Advisors 