Wednesday, 25 May 2016

LLC License Setup

business setup in abu dhabi
A limited liability company, also known as a company with limited liability, is a flexible form of enterprise that blends elements of partnership and corporate structures. It is the most common form of business entity currently formed in UAE.

A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the companys capital.

The minimum equity participation by UAE national is 51% and 49% that of owner. Capital required to form a limited liability company in Dubai is AED 300,000 (US$ 81,744) contributed in cash or in kind. The capital shall not be less than three hundred thousand dirham divided into equal shares the value of each not less than thousand dirham.

However, in other Emirates viz., Abu Dhabi, Sharjah, Fujairah etc., the capital requirement is AED 150,000 (US$ 40,872). Profit or loss distribution can be prescribed and responsibility of management of an LLC can be vested in the foreign or national partners or third party. The shares of such company are not open for subscription by the public and they do not issue negotiable shares.

Such company shall not conduct the business of insurance, banking or investment of money for others. These shares shall not be represented by negotiable instruments. If a body corporate is to be a shareholder in a Limited Liability Company under incorporation, then the capital of the Limited Liability Company shall be double the capital of the company wishing to be a shareholder. If non-nationals holding shares in such company, the U.A.E.) Business Set up Limited Liability Company, LLC
Activities in LLC License
Single Trading, General Trading, Contracting, Transportation, Technical Services, Advertising Agency, etc.
Process of establishing an LLC
To Establish a Limited Liability Company (LLC) in UAE, Establishing an LLC, Client has to follow defined procedures:

  • It is necessary to avail license from the Department of Economic Development or the Municipality.
  • Preliminary Consent for Name and Activity from the Department of Economic Development is the pre-requisite.
  • In the case of Special Nature Activity, the approval from concerned Ministry/Department is the groundwork step.
  • One has to draw up company’s Memorandum of Association and has it notarized from courts of respective Emirates.
  • For LLC Company, Capital contribution certificate to be obtained from banks for cash shares and auditor’s certificate for both cash shares and kind shares.
  • Person should submit applications and initial approval along with notarized copy of Memorandum of Association, capital certificate, tenancy contract etc., to the Department of Economic Development or the Municipality.
After inspection by the legal department, the Company name will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce Bulletin

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