Limited Liability Company

A Limited Liability Company (L.L.C) can be formed with 49% shareholding of expatriates whereas 51% shareholding shall be in favour of local U.A.E. national. Nominee arrangement is normally available with U.A.E. national to hold these mandatory shares in his name in favour of the expatriate partner. We provide such U.A.E. national for holding 51% shares as a nominee. This would provide effective total control to manage the company and enjoy all profits. The minimum capital required to form an L.L.C. in Dubai is US$ 81,800, which has to be deposited in a bank, and shall be blocked for approximately 2 weeks time.

The L.L.C shall have specific activities as per classification made by the Department of Economic Development, Dubai. In this regard, please note that only one category of activities are being given to one company. The company cannot have multiple activities except in General Trading License. L.L.C. is perhaps the only type of entity available to foreign investors for trading and manufacturing concerns.

Formation of L.L.C and Industry/Trading License:
Corporate governance is a concept which resulted success in the business of all industries of the world. Therefore, Limited Liability Companies have gained importance in the Middle East. Further, the government regulations too are in favor of L.L.Cs, for business activities in United Arab Emirates. For example, visit visas for businessmen can be availed from LLC sponsorships. We offer our services for the formation of LLC in UAE, right from the preparation of Memorandum of Association, Articles of Association, other documentation, filing, liaison with government departments etc until obtaining the Certificate of Incorporation. In addition we protect the rights of investors by provision of clauses in the agreement with the sponsors.

Licensing Authorities:

	Licensing Authority in the Emirate of Dubai : Department of Economic Development.
	Licensing Authority in the Emirate of Sharjah: Economic Development Department
	Licensing Authority in other Emirates: Municipality/ Chamber of Commerce

Procedures:
The procedures for establishing a L.L.C in UAE are very simple

The first step in establishing a L.L.C is to obtain preliminary approval for name and activity from the Department of Economic Development or the Economic Development Department or Municipality/ Chamber of Commerce. If the activity is of special nature, approval has to be obtained from the concerned Ministry/ Department.
The Company's Memorandum of Association has to be drafted. It has to be notarized from the Courts of respective Emirates.
Capital Contribution Certificate has to be obtained from Banks for cash shares and auditors certificate for both cash shares and kind shares.
The initial approval and applications along with notarized copy of Memorandum of Association, Capital Certificate, Tenancy Contract etc. has to be submitted to the Department of Economic Development or Municipality. Activities which require Special approval License to do most of the activities are directly issued by the licensing authority in respective Emirate. But certain activities require special approval from the related Ministry/ Department.

Examples:

	Medical, Pharmacy etc : Ministry Of Health
	Air transport, air cargo etc: Dept. of Civil Aviation
	Banks, Financial Institutions, Money Exchange etc: Central Bank
	New Industrial Project : Ministry of Finance & Industry
	Publishing, Printing, Newspaper, Advertising, Video Film, Photography: Ministry of Information
	Education, training etc.: Ministry of Education
	Agriculture, Veterinary etc.: Ministry of Agriculture
	Customs clearance, freight forwarding, sea cargo etc: Seaports & Customs Authority
	Telecommunication Equipment: ministry of Communication
	Branch of Foreign Company, Insurance Company, Chartered Accountants Firm etc: Ministry of Economy