Legal Maxims will assist you with Mainland Business setup & Company Incorporation in Dubai, UAE. The UAE Commercial Companies Law (Federal Law No. 2 of 2015) (“CCL”) introduced the latest changes to company formation in relation to LLC company formation.
LLC is the most common incorporation to operate commercial activities such as contracting and trading. For insurance and banking activities, the law requires that it be carried out under a Public Joint Stock company formation. Most companies with expatriate partners opt for Limited Liability Company because this is the only option which will give maximum legal ownership i.e. 49% to the expatriates.
Here are some pre-requisites for an LLC formation:
- The LLC must be formed between two (2) and Fifty (50) shareholders.
- The law states that a UAE national should own at least 51 percent shares in the company.
- The liability of the shareholders is restricted to the share capital of the company to be paid in full upon incorporation.
- The minimum capital required for incorporating an LLC is AED 150,000 except in Dubai, where the minimum is set at AED 300,000.
- The cap on the number of managers which was previously five (5) in the earlier law has now been removed.
- The time required to form a company will be approximately 1-2 weeks from the date of receipt of all the documents for which the procedures and the breakdown of the cost can be given upon request.
The steps required to establish a Limited Liability Company (LLC) in Dubai are:
- Selecting a commercial name for the Company to be approved by the Licensing Department of the Economic Department
- Drawing up the Company's Memorandum of Association to be notarized by a Notary Public in the Dubai Court.
- The Company should be registered at the Dubai Chamber of Commerce and Industry.