How
can I set-up a Limited Liability Company (LLC) in Dubai? What are the
procedures of setting up an LLC Company in Dubai?
Limited-Liability Company (LLC)
In a limited-liability company, the minimum number of shareholders is
two and the maximum is 50. The liability of shareholders is limited to
their shares in the capital. The company may carry on any type of
activities except insurance, banking, or money investment. In UAE, The minimum capital
requirement law was abolished on 10th August 2009. The memorandum of
association must include the following:
Trade name of the company, its objectives, head office, duration,
names of shareholders, their nationalities, addresses, and places of
residence; and
Amount of capital, share of each shareholder, and a statement of
capital paid in kind (if any), names and nationalities of the company
managers, distribution of profits and losses which may not necessarily
be in the same proportion as the capital, and the adopted method of
notification.
In Dubai, Capital Deposit rule has been cancelled. i.e. Limited
Liability Company can be formed without Bank Deposit Certificate and
Auditor Certificate. In Abu Dhabi, minimum capital requirement is
Dh150,000. The
manager of the company will be allowed to operate the account as soon
as the incorporation is completed. The Manager of the company can be
more than one and he/they shall have all administrative and financial
powers. A shareholder may transfer his share in the company or part of
it to another shareholder or to a third party. Management is handled
by no more than five designated managers, who are not necessarily
members of the company. Non-UAE nationals may own up to 49 per cent of
an LLC.
In distribution of profit and loss, foreign investor can have 80% and
20% local UAE sponsor.
It is imperative that each limited-liability company appoints auditors
to satisfy the requirements of the Commercial Companies Act. The law
does not permit this form of company to issue share certificates.
Evidence of ownership in the company is related and evidenced by the
percentage contributed, assigned, or transferred in the share capital.
Silent Partner
A larger portion of Dubai Limited Liability Companies use the local
UAE sponsor as a "silent partner." In this arrangement, the local UAE
sponsor is usually paid an annual "sponsorship fee" in return for
giving up management control of the company to the foreign investor.
To prepare your LLC Agreement call
+971
55-273 2295,
055-345 7829
read more
Steps of forming a Limited-Liability Company (LLC)
Name reservation from Department of Economic Development (DED) or
Tasheel Centre
at Al Tawar Centre, Qusais. Fees: Dh741 including service
charge.
Foreign/English words and short words/Abbreviation will be charged extra fee of
Dh2000 per year at the time of license renewal. First time fees
should be paid along with first license fees.
Trade Names that cannot be reserved:
Name of country,
Name of Continent, Famous regions and Towns, Colour (blue, red etc.).
Initial Approval for activity from Department of Economic Development (DED)
or
Tasheel Centre.
Initial approval fee Dh300 to be paid at DED.
Documents required for initial approval:
Filled form, Passport Copies
of Partners, Naturalization book's (Jinsiyya) copy of Local Partner, No Objection
Letter from the sponsor for expatriate partners (NOC is not required
for visit/Tourist visa holders and their visa copy should be
attached).
Some activities require initial approval from concerned departments (eg.
Municipality,
RTA, National Media Council etc.)
Preparing
Memorandum of Association (LLC Agreement)
Attestation of Memorandum of Association from
Notary Public.
As per the new rule, the court agreement must be typed by legal
translator or get seal and signature of the legal translator on the
agreement if it is typed from normal typing centre.
Tenancy Contract (It
is suggested to contact the counter of the Planning Dept. of Dubai
Municipality, at the Department of Economic Development, on Telephone
No. 04-2020105, or the Municipality’s Telephone No. 04-2063788, before
leasing the premises in order to ensure that it is suitable for the
business). Get
approval
on Tenancy contract from
Planning Dept. of Dubai Municipality at DED.
Submit Initial approval, Name reservation certificate, Attested Memorandum & Tenancy Contract at Department of Economic
Development.
Payment voucher will be issued same time or can be printed from
DED Website after two days.
Special approval required for certain business activities from the
concerned authorities
Tourism Companies
For Inbound Tou rism Dh100,000 to be deposited in Bank
For Outbound Tourism Dh200,000 to be deposited in Bank
These deposits are irrevocable till the license cancelled.
Travels
For Travel
Agency Dh100,000 to be deposited at
Department of Tourism & Commerce Marketing. This deposit is
irrevocable till the license cancelled.
Building Contracting Companies
For Building Contracting Company License, Dh10,000 to be
extra at the
Department of Economic Development when the license issued first time.
Office area should be minimum 1500 square feet.
Engineering Consultants: Minimum office space 1000 square feet
required.
General Trading
For General Trading License, Dh15,000 to be paid extra at the
Department of Economic Development when the license issued first time.
Customs Broker
Dh50,000 to be deposited at
Dubai Customs. This deposit is
irrevocable till the license is cancelled.
RTA Activities (following fees to be paid for RTA initial
approval)
Rent a Car: Dh5000
Bus Rental: Dh1000
Passenger Transport by rented Buses: Dh1000
Telephones & Telecommunications Equipment Trading
Dh5500 to be paid at
Telecommunications Regulator Authority
(TRA). This
is one time fee.
Security Service: Property guard & Surveillance Services, Party
security & private guarding services
Initial approval from
Department of Protective Systems, Dubai. Tel.
04-2048312
Oilfield & Natural Gas related activities
Initial approval from
Ruler's Court
Money Exchange
Initial approval from
Central Bank of UAE and
Department of Protective Systems
Jewelry, Mobile SIM Card Trading, Stamp & Seal Making
Initial approval from
Department of Protective Systems
• Car Wash License is issued only in
locations where there is a petrol filling station. This will need an
agreement with the said oil company to lease the space at their
filling station. Other norms on environment protection and safety have
to be followed as per the standards prescribed.
Supermarket
For supermarket, minimum 2000 square feet area is required.
Electrical Fitting Contracting:
minimum 360 square feet office area is required.
Cafeteria/Coffee Shop
Minimum 175 square feet kitchen area is required.
To set-up your
business, to prepare
your DED related forms, court agreements and amendments, call:
Qusais
(Al Nahda-2):
+971
55-273 2295,
055-345 7829
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Street Food Truck License in Dubai is controlled
by Dubai Municipality
Only ready-made meals and fry-ups are allowed to be served by food
trucks.
Get No Objection Permit from Permits and Applied Nutrition section
at Dubai Municipality to conduct this activity.
The kitchen area in the vehicle must be suitable for the permitted
activities. The floors, walls and ceilings should be made of smooth
materials; they should be easy to clean, non-absorbent of water,
fire-resistant, light-coloured, non-toxic and without cracks.
Food trucks must also provide appropriate ventilation and lighting.
There should also be a double sink for washing small equipment that is
situated close to the preparation area.
It is also required to provide sufficient and appropriate places for
storing one-time use packaging materials, and the equipment should be
conveniently distributed inside the vehicle, so as to separate the
various operations to prevent cross-contamination. It is not allowed
to prepare raw materials, thawed meat, poultry and fish in the mobile
truck.
The activity of food trucks should be limited to heating operations,
simple barbecues and fry-ups for ready-made meals like burgers,
sausages and French fries.
It is not allowed to clean and wash the vegetables in the mobile
trucks, and all vegetables must be sorted, cleaned, sterilised and
stored in clean covered containers outside the vehicle, in a licensed
and secure place in order to avoid cross-contamination.
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DED Centers (Branches)
Head Office: Business Village
Near Clock Tower
Deira, Dubai
Tel:04-4455196
Tel: 04-4455006 (VIP Section)
Al Tawar
Al Tawar Centre, First Floor, Qusais,
Deira, Dubai
Tel: 04-6013333
Dubai Mall
Deira, Dubai
Tel: 04-3827709
TECOM Branch
(To register licenses in TECOM area)
Dubai
Tel: 04-3754115
Frequently Asked Questions
Q:
How many managers can be put in the Memorandum of Association?
A:
Minimum one and maximum five. Article No 235 of the Commercial
Companies Law states the following: "A LLC shall be managed by one
manager or more, who shall be selected from the partners or otherwise,
provided that they do not exceed five. Managers shall be appointed in
the Memorandum of Association of the company or in a separate contract
for a specific period or without limitation."
Article No 236 of the same law states that if a manager is appointed
in the Memorandum of Association without limitation of a specific
period, in such an event, the manager shall remain in the company for
the duration of the company unless the Memorandum of Association
provides for the possibility to remove the individual.
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