The GCC/UAE market is the ‘go to’ place these days for all businessmen and employees. The lure of the Dirhams, a better lifestyle, an ease of doing business, an opportunity to explore and experience the advantages of living in a country that offers good living conditions and locational advantages and is considered to be a window to the East.
In search of a more lucrative option and better lifestyle, people are shifting to the Middle East region to experience better opportunities. So, if you are a would-be entrepreneur looking for options to set up your own firm there, then, take note of the information.
Setting up a Limited Liability company or LLC is the most popular business entity being registered by/opted for by foreign investors in Dubai. As per the laws there, this is the only option which offers the foreign nationals the maximum ownership – at 49%.
In fact, it is popular simply because apart from the ownership benefits, the steps for setting it up is simple; and, the Dubai limited liability company can be registered for any commercial purpose. Let’s look at the rules to follow for registering a LLC in Dubai.
The best part is that there are no minimum share capital requirements to register a LLC in Dubai. The only requirement is that you need to pass the sufficient capital test done by the Department of Economic Development [DED]. What is the sufficient capital test?
It’s nothing but an assessment that the Department does to ensure that the owners have sufficient funds to do the kind of business, they actually want. This is quite simple, with no red-tape involved in this procedure and is fairly transparent in nature. In fact, it works to your benefit if you look at it. The Department is aware of the types of business and the kind of capital necessary in that environment to ensure there’s no loss on the investor side. This is an important check to prevent revenue losses in the future. The need to check if the investor has sufficient funds to ensure smooth functioning is important for the long-term business prospects and environment suitability for the region.
Another important requirement for the LLC is the management criterion. Under the Dubai Company Act, the firm or company must have between one and five managers. This is a basic company registration requirement that they follow for good business practices. Another rule that is not very tough to emulate.
Apart from these generic criterion rules to follow through, there are five steps to follow when registering a limited liability company in Dubai. These include –
Reservation of the company with the Department of Economic Development or DED
Drafting and notarizing the company’s Memorandum and Articles of Association
Getting the documents in order and submitting the same accompanied by the business license application form to the DED
Registering the firm with the Dubai Commercial Register; and, before registering the firm, ensure that all the fees are paid for and takes care of all the steps of the procedure
Also, once the company is registered, go ahead and register all your employees with the Ministry of Labour and General Authority for Pension and Social Security
Keeping all these details in mind ensures that you are all set for opening that LLC in Dubai!