The UAE offers a lot of varieties for both locals and foreigners who want to start a business here. One of the most popular types of company structure in Dubai is a Limited Liability Company. LLC company formation in Dubai is safer than the other types of company structure.

As a result, it quickly became the most sought-after by foreigners. Subsequently, If you want to setup a Limited Liability Company in Dubai, then the experts at Company Setup Consultants are here to help you.

Seeking help from a business consultant in UAE can start a LLC Company Formation in Dubai very easy. It is also important to know the steps of LLC company formation in Dubai, to avoid confusions or complications. We will see why that is when we learn what is a Limited Liability Company.

What is LLC Company Formation in Dubai?

A Limited Liability Company (LLC) is a type of company structure where the shareholder’s liability is limited to the capital they have invested in the business. This means that if the business were to go bankrupt, all your personal properties that are separate from the business will be safe.

Whereas, in other types of company structures, the banks can look to your personal properties to collect your debts and loans

In Dubai, a Limited Liability Company must have a minimum of two shareholders and can have a maximum of 50 shareholders. All of these shareholders will have full protection from the liabilities of the business. Limited Liability Companies can be formed on the mainland in Dubai.

Most of the free zones in Dubai also facilitate the creation of Limited Liability Companies within their jurisdiction.

Expatriates often choose an LLC Company Formation in Dubai because it allows the maximum retention shares to the expatriate for the local business, which is 49%. This is because of the UAE law which states that foreigners must have a local investor in order to legally start and run a business in the Emirate.

Steps to Setup a Limited Liability Company in Dubai, UAE

Setup a LLC Company in Dubai is easy and straightforward. However, if this is your first time starting a business in Dubai then it is highly recommended that you seek assistance from professionals.

The Department of Economic Development (DED) has the authority to issue a license for Limited Liability Company (LLC) business setup in Dubai. They will ensure that there are no mistakes in the formation process that may lengthen the formation process.

Here are the steps you need to follow in order to start a Limited Liability Company in Dubai:

1. Choose your business activities

The first step is to select the business activities that you want to perform in Dubai. The business activities that you select will determine the type of business trade license that you will need to apply for. The most popular types of business trade license Dubai are Professional trade licenses, Commercial trade licenses, Industrial trade licenses, and Tourism trade licenses.

2. Choose your trade name

You will need to trademark a name for your new Limited Liability Company in Dubai. The name you have in mind can exist outside the UAE but as long as it is available inside the UAE, you can go for it.

Read More: How to Setup a Limited Liability Company in Dubai