Limited liability company licenses - Glenorchy

LIMITED LIABILITY COMPANY LICENSES


Foreign investors are permitted to hold an equity ownership in U.A.E. companies as long as 51% of the equity is held at all times by U.A.E. nationals. The preferred company form for foreign investors is the Limited Liability Company ("LLC") due to, among other factors, its flexible management structure, and protection of minority shareholders. The L.L.C. requires a minimum of two and a maximum of 50 members and in all cases must have a minimum of 51% U.A.E. ownership. The minimum capitalization is Dh150,000. Management of the L.L.C. is vested in the "managers" (up to five natural persons).
BENEFITS OF REGISTERING LLC AND CONVERTING EXISTING TRADING ESTABLISHMENT INTO LLC

•The investor becomes the partner in the company.
•The investor gets the investor visa under which he/her enjoys an investor’s status in Dubai along with his/her family.
•The investor can open an account in the bank having his authority to operate the account as well as creating any kind of banking transactions without local national’s assistance. The local national partner cannot open an account in the bank as bank account operations authorization is clearly mentioned in the name of the investor in the court agreement.
•The liability of the company is restricted to the company only. It means that if any loss occurs in the company, the partner’s personal assets are not attachable.
•The investor gets more facility to employee people in the company.
•The investor can create more branches at different places for his activities.
•The investor can run the business without the day-to-day interference of the local national partner.
•The assets and capital created will be in the name of the company and not in the name of the local national partner.

PROCESS FOR REGISTRATION OF ANY KIND OF BUSINESS IN DUBAI

•Dubai economic development department has classified all the activities under the different heads. The prospective investor has to choose the activity group.
•To establish LLC, according to Dubai government law, it is compulsory to keep one UAE national as a partner in the company. So the prospective investor has to choose the one UAE national (sponsor) as a partner in the company.
•After selecting the activity group and the sponsor, investor has to take initial approval from Dubai economic department.
•After having the initial approval, the investor has to select the trade name of the company and has to take the trade name approval from Dubai economic department.
•After taking the trade name approval, the investor (partners) and the sponsor has to register LLC contract- a memorandum in Dubai court.
•The investor has to select a proper business place and bring the tenancy contract along with the location plan, which has to be approved by planning and civil defense departments in Dubai Municipality.
•After executing the LLC contract in the court, the authorized partner has to open a bank account and deposit the capital required to register a company in this account. Then the authorized person has to obtain a letter from the bank mentioning that the partners have deposited the specific amount in the bank.
•After that the partners have to obtain an auditor’s report mentioning that partners have deposited the capital amount required to register a LLC.
•After processing all above documents, the partner has to submit them in Dubai economic department and after due scrutiny, the department will issue a trade license on payment of the required fees.
•After obtaining the trade license, the partner has to open an immigration and labor computer card.
•The partner can now apply for the investor visa by depositing the required amount.
•For some specific activities, some special permissions are required like adverting, tourism, gold and jewelry, money exchanges, medicines trading etc.

DOCUMENTS REQUIRED FOR REGISTRATION OF NEW LLC (LIMITED LIABILITY COMPANY)

•Registration and licensing application form from economic department-Government of Dubai.
•First approval from economic department.
•Trade name reservation.
•Partner’s passport copy
•Sponsor’s passport copy
•Tenancy contract for the business place attested by planning department and civil defense department of Dubai municipality along with location plan.
•LLC contract attested from public notary.
•Bank guarantee for the required share capital
•Auditor’s report
•No objection from earlier company if the partner is already employed in Dubai.

Contact us
Shuraa Management & Consultancy,
602, Medic Building, Near Habib Bank, Bank Street, Bur Dubai, Dubai, UAE.
Phone : +971-4-3510077
Mobile : +971-50-1577739
Fax : +971-4-3510078
Email : info@shuraa.com
Web : httpwww.shuraa.com