Dubai
Mainland
Abu Dhabi
Main Land
Sharjah
Main Land
Ajman
Main Land
The most prevalent company formation in the UAE, the Limited Liability Company (LLC), is ideal for businesses seeking to operate throughout the region. However, it’s important to note that 100% foreign ownership of LLCs is not permitted in the UAE.
Foreign investors can hold up to 49% equity ownership
One or more UAE nationals must own 51% of the shares
2 to 50 shareholders can be included
Minimum recommended share capital is AED 300,000
Multiple business-related activities can be conducted under a single trade license.
This category of business structure is suitable for professional services and consulting in the UAE. Establishing such an entity provides a foreign investor with the opportunity to attain full ownership in a company registered outside Free Zones.
A Civil company is entirely owned by foreigners, with a maximum of three shareholders and a local service agent. This structure is applicable to professional and service activities/licenses.
In this arrangement, the local service agent does not own any business shares or profits; these are solely owned by the foreign partner or company, holding 100% of the shares. The primary responsibility of the local service agent is to act as a signatory for the completion of all government-related tasks.
Despite being involved in government-related tasks, the local service agent does not possess administrative powers and is solely entitled to an annual payment for government services. The local service agent can be an individual with professional qualifications, a UAE Government employee, or a company owned by a UAE National.
The UAE’s commercial company law classifies businesses for regulatory purposes, ensuring optimal growth and support. With a plethora of options available, choosing the ideal location for your UAE company can be a daunting task. At CA Chartered Accountants LLC Business Setup, we’ll guide you through the pros and cons of each option, empowering you to make an informed decision aligned with your business goals.
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