Limited Liability Company - LLC
A Limited Liability Company can be formed by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the business capital.
It is required that at least 51% of the share capital must be owned by local resident. Hence foreigners who wish to set up an LLC in the UAE must appoint local sponsor/partner who is entitled the 51% of the Company shares.
Silent partner
A large portion of UAE 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.
Important also to note that an LLC must obtain approval from the Department of Economic Development and the Ministry of Economy.
Capital requirements
As from August 2009, there is no minimum capital requirement and the Company may carry on all types of activities except insurance, banking or money investment.
Upon the registration of an LLC a
Memorandum of Association is issued which must include:
- Name of the Company
- Business Activities
- Head Office
- Duration
- Share Capital (Authorized and issued - number of shares and value per share)
- Shareholders (Names, address, residency, nationality and shares granted)
- Managers (Names, nationalities and distribution of profits/losses (if any))
The total time required to form an LLC in the United Arab Emirates is estimated to 2 weeks - 3 months from the date of receipt of all the required documents.
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