{"id":1460,"date":"2024-01-15T05:10:37","date_gmt":"2024-01-15T05:10:37","guid":{"rendered":"https:\/\/arabfirstnew.ticyt-demo.in\/?p=1460"},"modified":"2024-01-15T05:10:37","modified_gmt":"2024-01-15T05:10:37","slug":"free-zone-license-in-dubai","status":"publish","type":"post","link":"https:\/\/arabfirst.ae\/index.php\/2024\/01\/15\/free-zone-license-in-dubai\/","title":{"rendered":"Free zone license in Dubai"},"content":{"rendered":"

LLC Formation in Dubai<\/h3>\n
\n
<\/div>\n<\/div>\n
\n
How can I set-up a Limited Liability Company (LLC) in Dubai? What are the procedures of setting up an LLC Company in Dubai?<\/p>\n

Instant licenses<\/u><\/b> take less than five minutes for issuance and it is one of the most popular categories among investors. The instant licence issued in a single step without the need for either a memorandum of association or an existing location for the first year only.<\/p>\n

Limited-Liability Company (LLC)\u00a0<\/b><\/p>\n

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:<\/p>\n

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.<\/p>\n

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\u00a0Dh150,000<\/b>. 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 percent of an LLC.<\/p>\n

In distribution of profit and loss, foreign investor can have 80% and 20% local UAE sponsor.<\/p>\n

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.
\n
\nSilent Partner<\/b>
\nA 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\u00a0call\u00a0<\/b>+971<\/b>\u00a055-273 2295,\u00a0055-345 7829<\/b><\/p>\n

Steps of forming a Limited-Liability Company (LLC)<\/b><\/p>\n

\u00a0<\/b>Name reservation from Department of Economic Development (DED) or\u00a0Tasheel Centre\u00a0at Al Tawar Centre, Qusais. Fees:\u00a0Dh741<\/b>\u00a0including service charge. Foreign\/English words and short words\/Abbreviation will be charged extra fee of\u00a0Dh2000<\/b>\u00a0per year at the time of license renewal. First time fees should be paid along with first license fees.
\n
\n<\/b>Trade Names that cannot be reserved:\u00a0<\/b>Name of country, Name of Continent, Famous regions and Towns, Colour (blue, red etc.).<\/p>\n

\u00a0<\/b>Initial Approval for activity from Department of Economic Development (DED) or\u00a0Tasheel Centre. Initial approval fee\u00a0Dh300<\/b>\u00a0to be paid at DED.<\/p>\n

\u00a0Documents required for initial approval:<\/b>\u00a0Filled 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).<\/p>\n

Some activities require initial approval from concerned departments (eg.\u00a0Municipality,\u00a0RTA, National Media Council etc.)
\n
\n<\/b>\u00a0<\/b>Preparing Memorandum of Association (LLC Agreement)<\/p>\n

\u00a0<\/b>Attestation of Memorandum of Association from\u00a0Notary 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.<\/p>\n

\u00a0<\/b>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\ufffds Telephone No. 04-2063788, before leasing the premises in order to ensure that it is suitable for the business).\u00a0Get\u00a0<\/b>approval\u00a0<\/b>on Tenancy contract from\u00a0Planning Dept. of Dubai Municipality at DED.<\/p>\n

\u00a0<\/b>Submit Initial approval, Name reservation certificate, Attested Memorandum & Tenancy Contract at Department of Economic Development.<\/p>\n

\u00a0<\/b>Payment voucher will be issued same time or can be printed from\u00a0DED Website<\/a>\u00a0after two days.<\/p>\n

Special approval required for certain business activities from the concerned authorities<\/p>\n

Tourism Companies<\/b>For Inbound Tou rism\u00a0Dh100,000<\/b>\u00a0to be deposited in Bank
\nFor Outbound Tourism\u00a0Dh200,000<\/b>\u00a0to be deposited in Bank
\nThese deposits are irrevocable till the license cancelled.<\/p>\n

Travels<\/b>
\nFor Travel Agency\u00a0Dh100,000<\/b>\u00a0to be deposited at\u00a0Department of Tourism & Commerce Marketing<\/a>. This deposit is irrevocable till the license cancelled.<\/p>\n

Building Contracting Companies<\/b>For Building Contracting Company License,\u00a0Dh10,000<\/b>\u00a0to be extra at the\u00a0Department of Economic Development when the license issued first time. Office area should be minimum 1500 square feet.
\nEngineering Consultants:<\/b>\u00a0Minimum office space 1000 square feet required.<\/p>\n

General Trading<\/b>For General Trading License,\u00a0Dh15,000<\/b>\u00a0to be paid extra at the\u00a0Department of Economic Development when the license issued first time.
\nCustoms Broker<\/b>
\nDh50,000<\/b>\u00a0to be deposited at\u00a0Dubai Customs<\/a>. This deposit is irrevocable till the license is cancelled.<\/p>\n

RTA Activities\u00a0<\/b>(following fees to be paid for RTA initial approval)
\nRent a Car<\/b>:\u00a0Dh5000\u00a0<\/b>\u00a0
\nBus Rental<\/b>:\u00a0Dh1000<\/b>\u00a0
\nPassenger Transport by rented Buses<\/b>:\u00a0Dh1000<\/b>\u00a0<\/p>\n

Telephones & Telecommunications Equipment Trading<\/b>
\nDh5500<\/b>\u00a0to be paid at\u00a0Telecommunications Regulator Authority<\/a>\u00a0(TRA). This is one time fee.<\/p>\n

Security Service: Property guard & Surveillance Services, Party security & private guarding services<\/b>
\nInitial approval from\u00a0Department of Protective Systems<\/a>, Dubai. Tel. 04-2048312<\/p>\n

Oilfield & Natural Gas related activities<\/b>Initial approval from\u00a0<\/b>Ruler’s Court<\/p>\n

Money Exchange\u00a0<\/b>Initial approval from\u00a0<\/b>Central Bank of UAE<\/a>\u00a0and\u00a0<\/b>Department of Protective Systems<\/a><\/p>\n

Jewelry, Mobile SIM Card Trading, Stamp & Seal Making<\/b>Initial approval from\u00a0<\/b>Department of Protective Systems<\/a>\u00a0Car Wash License<\/b>\u00a0is 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.<\/p>\n

Supermarket<\/b>For supermarket, minimum\u00a02000<\/b>\u00a0square feet area is required.<\/p>\n

Electrical Fitting Contracting:\u00a0<\/b>minimum\u00a0360<\/b>\u00a0square feet office area is required.<\/p>\n

Cafeteria\/Coffee Shop<\/b>Minimum\u00a0175\u00a0<\/b>square feet kitchen area is required.<\/b><\/p>\n

<\/p>\n