Dubai is acknowledge by entrepreneurs all around the world as one of the best destinations for conducting business. The city is considering the most influential destination in the Middle East. One way of starting your business in such a potent location is through a Limited Liability Company (LLC). This is one of the most preferred business entities by entrepreneurs from around the world. A low LLC company cost in Dubai and the liability of the shareholders being limited to the shares they invest in are 2 of the top reasons why entrepreneurs prefer forming an LLC in Dubai. If you are one of those entrepreneurs who look forward to LLC company formation in Dubai, you must be aware of the LLC company cost in Dubai.
Why Choose to Open an LLC in Dubai?
There are many reasons why you should open an LLC in Dubai. One of the best reasons for the same is low start-up cost. The process to start an LLC company in Dubai is not only easy but also very affordable. Besides this, there are several other advantages of opening an LLC in Dubai, a few of which are as follows:
- You are allow to conduct various types of business activities under an LLC.
- An LLC can officially trade its products in the local market without the necessity to pay any taxes.
- Unlimited visas can be an issue if you choose to open an LLC in Dubai. Though, the number of visas depends on the space of your office. The larger the space, the more visas you can acquire.
- Freedom to choose, rent, and buy office premises anywhere across the country is available to the owners of LLC in Dubai.
- An LLC is allow to conduct trading anywhere within the UAE, GCC, and the free zones.
- You can easily take up government tenders or projects on a contractual basis.
- An LLC in Dubai allows you to open a corporate bank account without any hassle.
What is the Process to Open an LLC Company in Dubai?
The process of an LLC formation in Dubai is comparatively easy to follow. However, it does require the preparation of certain paperwork and seeking initial approvals from respective legal authorities depending upon the type of business activities chosen. The LLC company formation steps are as follows:
- Choose appropriate business activities from the list provided by the DED.
- Select and legally register the name of your LLC in Dubai.
- Acquire the approvals for your trade name and business structure.
- Obtain the necessary additional approvals from the Department of Economic Development.
- Prepare the Memorandum of Association and get it sign by all your business partners, stakeholders, and shareholders.
- Find and partner with a local sponsor and sign a Local Service Agreement (LSA) with them.
- Acquire the shareholder resolution and required agreements.
- Submit all the documents for inspection and wait for the initial approval.
- Get your Physical Office space and then register with Ejari to obtain your unique Ejari code and the tenancy contract.
- Submit the tenancy contract with the initial approval documents to obtain the LLC Company License.
- Once you receive your LLC license, make sure to initiate the payment for the license fee within 24 hours of the issuance of the license.
- Apply for a residence visa in Dubai.
- Apply and acquire your Emirates ID.
- Open a corporate bank account in Dubai.
- Register your employees with the Ministry of Labour and General Authority for Pension and Social Security.
What is the LLC Company Cost in Dubai?
The LLC Company Registration cost covers all the significant components of LLC company cost in Dubai. Further mentioned is the list of all the major costs involved in LLC company formation:
A rough estimation of the total LLC company cost in Dubai is approximately around AED 27,000. The details breakdown of this estimating cost is given below:
- Firstly, for conducting general trade activities like import-export, re-export, trade goods or products such as clothes, food items, electronics, etc. you need to pay a fee of around AED 9,000 to AED 15,000.
- You need to acquire a commercial license in Dubai to conduct any kind of commercial activity. A commercial license registration in Dubai can cost you approx. AED 600.
- You need to pay a fee of about AED 3,000 for the trade name registration fee to the DED.
- A 1-year tenancy contract will cost you nearly AED 10,000.
- Registration of a non-Arabic trade name in Dubai can cost you anywhere between AED 1200 to AED 2000.
- The cost of register your company under the Ministry of Economy is AED 2500.
- The membership price at the Dubai Chamber of Commerce and Industry will cost you around AED 1200 to AED 2200.
- Estimated Dubai LLC company investor visa cost inside the country is approx. AED 4,000 and outside the country is approx. AED 2,700. (This cost does not include health insurance.)
- An LLC company employment visa with 2-year validity can cost around AED 5,000.
- Finally, it is mandatory to pay 5% of the rent of your shop/office space. The bigger the office the more the rent.
You must renew your license annually before its expiry date. If you fail to do so, the license will be automatic cancel or deactivate. The annual LLC license renewal cost in Dubai is approximate AED 15,000.
Connect With Shuraa
Considering the low LLC company cost in Dubai, if you are also thinking of opening one then this is the best time than ever. With Dubai Expo 2020 around the corner, you should start planning to start your LLC company in Dubai to reap numerous benefits. Although the registration process is quite simple, it is better to take help from company formation experts in Dubai. Business consultants at Shuraa Business Setup can lend you a helping hand for preparing necessary documents, acquiring required approvals, and obtain your license at a low cost. All you need to do is contact us and we will take care of the rest.
Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message on +971 50 777 5554. You can also write to us at firstname.lastname@example.org.