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|Creative Zone is a business set up company providing consulting services to entrepreneurs and business startups looking to start a business in the United Arab Emirates. Their services include business licensing in Free Zones, Limited Liability Company’s and Offshore companies setups, as well as, new business support services, company registration and company formation in Dubai.|
Benefits Of Setting Up A Limited Liability Company In The UAE
A Limited Liability Company is the most common form of corporate vehicle in UAE. It can be formed with a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company's capital. At least 51% of the shares must be held by a UAE national. LLC's can sell directly to the local market, but is not permitted to carry out certain consultancy or professional activities, such as medical services, accountancy, and audit services and engineering.
- Full benefits of Double Taxation Treaty (DTT) and special Treaties (i.e. Greater Arab Free Trade Area - GAFTA)
The UAE's Double Taxation Treaties aim to provide tax privileges to individuals and companies coming from other taxing jurisdictions. Hence, an LCC is not subject to corporate tax and withholding tax. There is also an exemption of freight taxes for national airlines and shipping companies.
- Ability to physically trade in the UAE and abroad
The LLC offers unrivalled access to the wider UAE economy. It is the most popular method of establishing a commercial company because business activities are permitted in Dubai mainland and free zone areas. The investor has the option to commence branches anywhere in the UAE. Few activities are restricted compared to the free zone, and it is easy to open global /local corporate bank accounts and avail credit facilities.
- The investor can manage the business without the day to day interference from the local partner
The assets and capital created will be in the name of the company and not in the name of the local national partner. The foreign investor becomes the partner in the company and gets the investor visa under which he/she enjoys the investor’s status in the Emirates along with his/her family.
- Limited liability
The main advantage of an LLC is that the overall liability of the investors is limited to the share capital as stated in the Memorandum & Articles of Association for the company. While foreign equity in the company does not exceed 49%, profit and losses can be shared at a ratio different from the share capital. There are also no specific minimum capital requirements.
At these evolving times, investors are given a lot of opportunities on how to best start their business in the UAE. It is advantageous to set up an LLC to gain the advantage of limiting the liability against your company and assets. Furthermore, an LLC gets the full benefits of special treaties and they are able to freely conduct their business in any parts of the UAE without restriction.
About The Author:Creative Zone is a business set up company providing consulting services to entrepreneurs and business startups looking to start a business in the United Arab Emirates. Their services include business licensing in Free Zones, Limited Liability Company’s and Offshore companies setups, as well as, new business support services, company registration and company formation in Dubai.
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