Monday, October 26, 2009

Dubai LLC, What is it?

Dubai limited liability company or Dubai LLC is an excellent choice to use for entrepreneurs doing business in Dubai. Listed are overview of the advantages and disadvantages of incorporating a Dubai LLC.

Advantages of a Dubai LLC

1. A Dubai LLC offers unrivalled access to Dubai and the wider UAE economy. Through a Dubai LLC, international entrepreneurs obtain Trade Licenses from the Dubai government. There are few restrictions on the activities of a Dubai LLC, and it is possible to obtain a license for all activities with the exception of i) banking ii) insurance and iii) investment activities.

2. Through a Dubai LLC, investors obtain a strong physical presence in Dubai. Although cost effective office space is hard to find in Dubai Healy Consultants offers solutions to meet every budget and specifications, including our Dubai virtual office service.

3. It is easy to open global corporate bank accounts following Dubai LLC set up. Healy Consultants works with internationally-recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Disadvantages of a Dubai LLC

1. Incorporating a Dubai LLC is expensive. Along with high government fees, the minimum capital for a Dubai LLC is Dhs 300,000 (US$81,700), although investment companies have a capital requirement of at least Dhs 3 million. Share capital is payable prior to incorporating the Dubai LLC. Healy Consultants will arrange for the share capital to be lodged into a Dubai bank, which will issue a certificate confirming the same. This certificate is presented to the government as part of the Dubai LLC formation process. However, the share capital can be withdrawn once the company is incorporated.

2. In addition to government incorporation fees, investors setting up a Dubai LLC are required to pay to the government 5% of the annual lease rent of the office premises (and at the time of annual renewal an additional 5% of the annual lease rent for the manager’s residence also becomes payable).

3. Setting up a Dubai LLC is difficult. A Dubai LLC requires a minimum 51% shareholding by UAE nationals. However, profit and loss distribution can be mutually agreed, and the UAE national need not have a management role in the Dubai LLC. Healy Consultants will provide a local sponsor to fulfil this statutory requirement if required.

4. If the 49% shareholder in the LLC is a foreign corporate entity, the corporate documents of the foreign company (e g Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution resolving to participate in a Dubai LLC and Power of Attorney in favour of the Dubai LLC manager) must be notarised and legalised in the country of incorporation of the parent company. In addition, these documents must then be legalised at the Ministry of Foreign Affairs in Dubai and then translated into Arabic. These requirements contribute to the complexity and costs of setting up a Dubai LLC.

5. Following Dubai LLC incorporation, a register of shareholders and directors is available for public viewing.

6. A Dubai LLC is required to annually submit audited financial statements to the Dubai government.


  1. With the help of a professional business consultant LLC formation in Dubai becomes a much simpler task.

  2. hi

    i want to setup a new branch of my comapnay in dubai...i am contacted many registration company but i didn't get proper result from that regarding cost. Please suggest how cheaply i will open a new branch in dubai. Suggest real estate consultancy for office set up for rent.we emphasize on cost effective set up of branch.please solve it out.

    thanks and regards

    Abhisekh Singh


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