Everything You Need to Know About LLC Companies and How Dahhan Business Services Can Help You
An LLC (limited liability company) represents a popular business structure offering flexibility, limited liability for owners, and advantageous tax benefits. If youโre considering setting up a new company or restructuring your current entity into an LLC in the UAE, Dahhan Business Services is your trusted partner for a seamless and efficient process.
Introduction to LLCs
An LLC company has emerged as one of the most preferred business structures globally due to its unique combination of features from corporations and partnerships. This hybrid entity provides the limited liability of a corporation while allowing for the tax benefits and operational flexibility of a partnership.
What is an LLC?
A Limited Liability Company (LLC) is a legal business entity that offers a flexible structure for its owners, known as members. It combines elements of both corporations and partnerships, allowing members to manage the business while benefiting from operational flexibility and simplified compliance requirements.
Benefits of Forming an LLC in the UAE
Operational Flexibility:
Less stringent corporate formalities compared to corporations.
Tax Benefits:
Pass-through taxation where profits are only taxed once and
Credibility:
An LLC often appears more credible to potential customers and partners compared to a sole proprietorship or partnership.
Setting Up an LLC in the UAE
Step-by-Step Process
Business Plan and Initial Consultation:
Dahhan Business Services begins with understanding your business model, after which we create a tailored business plan to meet regulatory requirements and foster business growth.
Name Reservation:
We assist in choosing a unique business name that complies with the UAE naming conventions and reserve it with the relevant authorities.
License Application and Initial Approval:
Lodging the required documents for an initial approval from the Department of Economic Development (DED) or another relevant authority.
Memorandum of Association (MOA):
Preparing the Memorandum of Association (MOA) outlining the structure of the LLC, including member roles and profit-and-loss sharing arrangements. We offer the flexibility of virtual signing to save time for the signatories or the standard option of physical signing.
Office Space:
Securing a physical office space if the mainland setup is required.
Final Approval:
Fulfilling any remaining legal and regulatory requirements to get the final approval from the relevant authorities.
Opening a Corporate Bank Account:
Providing support on opening a bank account for your new LLC.
Why Choose Dahhan Business Services for LLC Setup?
Dahhan Business Services leverages a decade-long expertise in business setup services within the UAE. Our team simplifies the complex process, integrating legal, logistical, and financial expertise. Below are some of the reasons why you should consider us for your LLC setup needs:
Expert Guidance:
From initial consultation to full business setup.
Efficiency:
Streamlined processes that save time and avoid common pitfalls.
Compliance:
Ensuring all legal aspects are diligently covered.
Personalized Service:
Tailored services that meet individual business needs.
Important Considerations for LLCs in the UAE
Ownership Structure
With the changes in UAE laws regarding company ownership, expatriates can now fully own a company with a 100% ownership structure, making it more advantageous. This structure is similar to that of free zones. However, a few specific business activities may still require either 51% or full ownership by a UAE national.
Legal and Regulatory Requirements
All LLCs need to comply with the UAE’s Commercial Companies Law (Federal Law No. 2 of 2015), which includes registration with the DED or relevant free zone authority.
Conclusion
Forming an LLC in the UAE offers many advantages, such as limited liability protection and operational flexibility. However, the process can be complex and involves multiple regulatory steps. Dahhan Business Services is here to ensure a smooth and hassle-free LLC setup in the UAE.
Ready to take your business to the next level? Contact us today to learn how Dahhan Business Services can assist in setting up your LLC in the UAE.
Frequently Asked Questions (FAQs)
Trade License renewal must be done yearly. Make sure to renew your license before it expires
You need at least one shareholder (can be 100% foreign in many sectors), a registered local office address, approved trade name, and initial approval from DED. The minimum capital requirement varies by activity.
How long does it take to establish an LLC in Dubai?
The complete setup, including license issuance, typically takes 3-5 working days for individual ownership. However, the timeline may vary depending on the ownership structure. With Dahhan’s expedited service, we strive to complete the process as quickly as possible.
Can a Dubai LLC sponsor visas for employees?
Yes, once licensed, your LLC company can apply for residence visas for owners and employees. The number depends on your office space and business activity.
What's the difference between mainland LLC and free zone company?
Mainland LLCs have the advantage of being able to trade directly within the UAE market (B2B & B2C concept) and are commonly used by businesses looking to bid for government contracts. In contrast, companies established in free zones are generally restricted to operating within their designated zone, engaging in business-to-business (B2B) transactions, or conducting international trade.
Do Dubai LLCs pay corporate tax?
Yes, Dubai Limited Liability Companies (LLCs) are subject to UAE corporate tax, which was introduced on June 1, 2023. The corporate tax rates are as follows:
0% on taxable income up to AED 375,000 (to support small businesses).
9% on taxable income above AED 375,000.
Different tax rates may apply to large multinational companies that meet specific criteria under the OECD Pillar Two framework.
However, certain sectors such as natural resource extraction are subject to separate tax regulations at the emirate level. Additionally, businesses operating in free zones may still enjoy tax incentives, provided they comply with the UAE’s economic substance requirements.
Can I change my business activities after LLC formation?
Yes, but it requires submitting a modification application to DED and paying additional fees. Some activities may require new approvals or capital.
