FAQ – LIMITED LIABILITY COMPANY (LLC)
What is a Limited Liability Company?
A limited liability company is a company registered with the department of economic development of an emirate, which requires 51% of the shareholding owned by a local UAE citizen. A limited liability company operates its business under a trade license issued by the department of economic development of the respective emirate, which is renewable every year.
What is the shareholding pattern possible in an LLC?
Local UAE citizen (s) must own 51% shares of the issued capital of the company and any foreign citizen (s) / foreign company (s) can own the balance 49% of the issued share capital.
Who controls the bank account of an LLC?
The Memorandum of Association can be drafted in such a manner that only the foreign owner can open, operate and close the bank account(s).
Can an LLC import / export / trade internationally and locally?
Yes an LLC can trade locally and internationally and also with any free zones in UAE through local dealer or agents.
Who arranges local partner (sponsor) for incorporation of an LLC?
If you do not know any local UAE citizen we can arrange local partner for you at a reasonable fixed annual fee.
Is local sponsor involved in the day-to-day operations of the business of an LLC?
No they are not involved in the day-to-day business operations of the company; they only help in visa and immigration processing for the company.
Is physical office required to open an LLC?
Yes, you are required to have a local office in the emirate you want to open an LLC.
Can an LLC open its branches in UAE and internationally?
Yes, an LLC can open its branches all over the UAE, including free zones and internationally.
In which emirates an LLC can be incorporated?
An LLC can be incorporated in all the seven emirates of UAE namely Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Ajman, Fujairah and Umm al Quwain.
What is the minimum capital required to open an LLC?
It depends upon the emirate you open the LLC and the business activity you opt for your trade license.
What kind of visa shareholders get in an LLC?
Shareholders get investor visa from the department of immigration directly. No labor approval is required for investors.
How many people can be employed in an LLC?
You get approval for number of employment visas based upon the size of the office space.