Limited Liability Companies

A Limited Liability Company is the most common form of business entity currently formed in UAE. Articles 218 to 255 of the Commercial Companies Law regulate the establishment of limited liability companies. The company may carry on any type of activities except insurance, banking, or money investment. The shares of company are not open for subscription by the public and they do not issue negotiable shares. Also, Profit or loss distribution can be prescribed and responsibility of management of an LLC can be vested in the foreign or national partners or third party.

Salient Features

  • A Limited Liability Company is the most suitable entity for doing business in UAE’s local market.
  • A limited liability company can be formed by a minimum of 2 and a maximum of 50 persons.
  • The minimum equity participation by UAE national is 51% and 49% by the foreign partner.
  • Liability of the partners is limited to the shares held by them in the company.
  • The minimum capital requirement for LLC company is:
    • Dubai - AED 300,000 (US$ 81,744)
    • Other Emirates - AED 150,000 (US$ 40,872)

The memorandum of association must include the following:

  • Trade name of the company
  • Objectives
  • Head office
  • Duration of Company
  • Names of shareholders, Mangers & their nationalities
  • Addresses, and places of residence
  • Management of the company
  • Amount of capital
  • Share of each shareholder, and a statement of capital paid in kind (if any)
  • Distribution of profits and losses which may not necessarily be in the same proportion as the capital, and the adopted method of notification

Documents / Details Required

  • 1. Initial approval (Application) form typed in Arabic, signed by all the partners.
  • 2. Name approval from Department of Economic Development.
  • 3. Passport copies of all the shareholders and Manager.(Zinsia copy /Family card of the Local partner).
  • 4. Tenancy Contract of company office attested from Land Department.
  • 5. NOC from the current Visa sponsor if the foreign shareholders/Manger is resident of UAE.