Limited Liability Company

There are at least three to four ways in which foreign businessmen and business owners can set up shop in the UAE.

Among these, the free zone is one in which foreigners can retain full ownership, while also being able to send most of their profits to their home country, or a destination of their choosing.

The main disadvantage with this setup is that it is not useful when the business model you implement mostly relies on the local market.

As most readers would know, Dubai residents have a significant purchasing power and many business entities come to the country with the specific intention of selling to the very lucrative and profitable local market.

In this case, the main priority is setting up shop in the main limits of the city. Herein, the limited liability company is the most popular option, and has a number of advantages as well.

Limited Liability Company (LLC)

A LLC can be set up with at least two and at the most 50 shareholders of the company. The liability and general obligations of these individuals are limited to their stake in the capital of the company.

This option is mostly used by foreigners who want to establish a business in the city mainland, and want access to the local market. The voting rights of the foreign shareholders may not exceed 49%.

The main features of this option are:

• No limits on local and international trading
• An office is required
• Visa is secured for foreign owners and shareholders
• 51% of the ownership is retained by a UAE national
• Optimum traits for retail businesses

Ownership Makeup

Although this setup allows for the foreign shareholders to keep a maximum of 49% of the shares and voting rights, the share of the profits for these individuals can exceed the proportion.

This is because the law makes room for the possibility of LLCs putting together a flexible profit sharing agreement.

Advantages

The Dubai LLC setup gives foreign businessmen and individuals unfettered access to the full spread of the local economy.

International investors and entrepreneurs can even use this arrangement to secure trade licenses from the government, which is made much easier by a corporate pro services company in Dubai.

These organizations can even help secure cost-effective office space, which as most residents and businessmen would know, can be a difficult thing to find.

Owners have the ability to also gain licenses for a large variety of activity, with the exception of investment and banking services.