24 Jan 2017

24 Jan 2017

Starting an LLC Company in Dubai

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Category: Limited Liability Company

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Limited-Liability Company (LLC) A company that is limited by shares of either two shareholders or a maximum of 50 shareholders. The value of shares is determined as per the stake owned by the respective company. The majority of business activities are formed on an LLC basis, whereas certain activities such as Insurance, Banking, money investment and Real Estate are exempted.

There is no minimum capital required for an LLC company whereas if a partner desires to have an investor/partner visa in the same company then he/she will have to hold a value of AED 70,000 shares or above for obtaining a visa as per the Immigration norms. But if an investor decides to start up an LLC company in Abu Dhabi a minimum capital of AED 150,000 must be shown as deposit and can make use of the capital once the company has been incorporated.

LLC Legalisation:

A well-structured legal document must be made among the partners known as the MOA(Memorandum of Association) with the following details

  • Trade Name of the Company
  • Details of the Partners(Name, Nationality and Passport Number)
  • Address and Contact Number of the Partners in the UAE
  • Objectives of the company(Activities)
  • Head Office of the company(respective Emirates to be mentioned)
  • Shared being acquired by each partner
  • Capital of the Company
  • Managing Directors of the Company
  • Profit and Loss share in the company
  • Details on General Assembly

Profit share of 20% must be assigned to the Local Sponsor

The MOA can be prepared solely in Arabic or both in English and Arabic but needs to be legally translated into Arabic.

LLC COMPANY INCORPORATION PROCEDURE:

Stage 1:

Trade Name must be reserved at the initial stage based on the activity decided. Trade Names can be reserved from the following counters:

  • Tas-heel Center (AL TWAR)
  • On time
  • Department of Economic Development Dubai UAE

Fees: AED 720 (including service charges)

AED 2000 will be charged additionally on the company’s trade license if any foreign name has been selected. A trade name must not contain, the name of a place, region, country or a continent. It should also not contain the name of colors, the name of a person other than license holder and should be a name that will have a meaning when translated into Arabic.

A copy of the passport of at least one partner must be carried along to the counter in order to receive the name.

Stage 2:

An Initial approval should be obtained from one of the nearest Tas-heel center mentioning the partner and activity details. The initial approval should also state who are the manager and partners.

Documents required to obtain the Initial approval:

  • (BR1) the application must be typed through any typing center by indicating the details of existing partners/new partners.
  • Passport copy of the Local Partner and the existing partners
  • Jinsiyya or the Family book of the Local Partner
  • A UID number must be collected from the main Immigrations for individuals who have entered UAE on an on-arrival Visa. Government fee of AED 130 in order to receive the UID number.

An initial enquiry receipt will be received in place of initial approval certificate for activities that require special approvals such as RTA, Dubai Municipality etc.) 

Stage 3:

MOA/LLC Agreement

A Memorandum of Association needs to be prepared and attested by the Notary Public. A MOA must be typed by a legal translator and must affix authorized seal and signature on all the pages. The MOA must be signed in front of the judge in presence of all the partners and needs to be validated. The partners must sign in 4 copies. Once validated the MOA will be given back from the respective authorities in 3 copies and one copy will remain at the court.

Stage 4:

Tenancy/Ejari

While preparing the documents above the partners needs to hire an office space or a Warehouse based on the activity being opted. The Tenancy Contract should be exclusively in the company’s name or the Local Sponsors name. An Ejari certificate should be obtained as per the RERA norms which mentions the rent/value of the property, tenure and size of the office.

Note: It is advised to check with planning department of Dubai Municipality at the DED of Business Village to check whether the property is suitable for the business being established.

Stage 5:

Licensing

Submit all the documents as per the stages mentioned above to the tas-heel at the DED in order to obtain the payment voucher. The documents will have to be submitted directly to the DED if in case there are any additional approvals required.

The Partners can take a prior appointment and visit the DED directly to submit the documents.

Documents to be filed:

  • Registration form filled at the time of initial approval
  • Trade Name Certificate
  • Initial Approval
  • Attested MOA
  • Passport copy with Visa Page
  • NOC if under a sponsor( not required if the visa has been canceled)
  • Tourist or Visit Visa copy
  • Visa cancellation paper if applicable (Cancellation paper required)
  • Document from departments like RTA, NTA or NMC based on the activity
  • Ejari Certificate

All documents must be submitted in originals, for receiving the payment voucher. Payment Vouchers are generated mostly the same time on submission of documents but will delay if any approvals are required from the municipality or any other relevant departments. The Payment Voucher can also be printed from the DED website by checking the Transaction and Payment status.

The Payment can be done online or through cash counter at the same Tasheel centre.


Activities with Special approvals and Requirements:

 

General Trading License

An amount of AED 15,000 must be paid to the Department of Economics in addition to the License fee for the first time.

 

Customs Broker

AED 50,000 to be paid to the Customs Department. The amount can be refunded at the time of cancellation of the license.

 

RTA Activities (NTA approval will also be required for certain activities)

  • Rent a Car Activity AED 5000
  • Bus Rental Activity AED 10,000
  • Passenger Transport by rented Buses Activity AED 10,000

Telephones & Telecommunications Equipment Trading

AED 5500 to be paid to the Telecom Regulation authority. The TRA certificate is valid for 5 years

 

Security Services: Property Guard & Surveillance Services, Party Security & Private Guard Services

Initial approval from Department of Protective Systems, Dubai.

 

Oilfield & Natural Gas related activities

Initial approval to be obtained from Ruler’s Court

 

Money Exchange

Initial approval o be obtained from Central Bank of UAE and Department of Protective Systems

 

Jewelry

Initial approval to be obtained from Department of Protective Systems.

Warehouse or office spaces should be hired as per the Dubai Municipality and DPS norms. An Environment clearance certificate should be submitted to the Dubai Municipality.

 

Supermarket

Minimum 2000 square feet is required for a Supermarket.

 

Tourism Companies

For Inbound Tourism AED 100,000 needs to be deposited in the Bank, which can be refunded at the time of cancellation.

For Outbound Tourism AED 200,000 needs to be deposited in the Bank, which can be refunded at the time of cancellation.

 

Travel Agency

AED 100,000 must be deposited at the Department of Tourism & Commerce Marketing., which can be refunded at the time of cancellation.

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