Published date: January 14, 2018
  • Location: Alnahda, Al Qusais, dubai, United Arab Emirates

In UAE Limited Liability Company (LLC) is a famous type of company and it can be started with minimum 2 shareholders and maximum 50 shareholders.
In order to start a Limited Liability company in UAE investor must get a local partner or local sponsor which by law should hold 51% of shareholding and the investor hold 49% of shares.
The rules for an outsider to hold maximum legal ownership. You must have a sponsor in order to form an LLC which is normally a UAE citizen.
Licensing Authority:
There are different licensing authorities in different Emirates for Limited Liability Company.
In Dubai and Abu Dhabi:
• Department of Economic Development (DED) is the licensing authority.
In Sharjah:
• Department of Economic Development (DED) is the licensing authority.
In the Other Emirates:
• Municipality or Chamber of Commerce is the licensing authority.
Minimum capital law for LLC was abolishedin 2009. Presently the rule has been abolished an LLC can be formed without bank deposit and once in a while without auditor's certificate in Dubai,
However,in Abu Dhabi, you still have to deposit 150,000AED as minimum capital. LLC has a huge lines of options, a large number of business activities are permitted under LLC.
While registering LLC you have to fill out avarious form with experts. A considerable lot of the documents are in English yet at somepoint, it is required by thevarious department that you should present that document in Arabic so for that you require a typist who can do as such in Arabic.
Needs to draw Memorandum of Association (MOA) which should include:
• Trade name (company name),
• Office timing,
• Objective of company,
• Head office if you have any sub-office,
• Name of shareholders,
• Number of shareholders and their shares,
• Total capital,
• Distribution of profit and loss,
• Name of the manager of the company with nationalities,
A sponsor in UAE is essential and could be any UAE National women, men or any UAE owned company.
The obligation of thesponsor is to get you into the country as an employer, as a traveler.
In case of LLC, a sponsor gets the 51% of theshare of the organization. Despite the fact that support gets thegreatest shareholding in the company, however, he/she have not said in the company matter, sponsor act as a silent partner and most of the time only get the yearly expenses.
Steps to form an LLC:
1. Choose the company name and it will be used to get approval from the authorities for your company.
2. To charter a Memorandum of Association (MOA) which should be notarized by anotary public.
3. Get approval from theauthority.
4. You can get the license issued by the authority.
5. The last step is Company registration with commerce department and industry your company is affiliated with.
Required documentsby the authorities to register your LLC in UAE:
• Passport copy of the foreign investors,
• Passport copy of the manager of the company,
• Passport copy of the local sponsor,
• Registration form from governing authority,
• Trade name certificate,
• No objection letter from the sponsor if your partner or manager is on residence visa in the UAE,
• You may also ask the registration authority from the Initial approval from the Economic or commerce ministry of UAE,
• Attested MOA from the public notary,
• If your company is engaged in manufacturing business then you have to provide the tenancy agreement of warehouse facility which should be attested by the planning department and civil defense department alongside with a location plan.
For more details you can contact MSZ Consultancy for advice and assistance, we can help you to set up LLC company in UAE.
contact number: 00971589827842 or visit:

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