What is LLC Company in Dubai and Why should Free Zone Company prefer LLC Structure?

Freezone company setup has become extremely beneficial in today’s time. UAE is one of the biggest Middle Eastern countries that has a wide range of free zones. The availability of free zones is one of the main reasons why the UAE is so popular. If you want to set up an LLC company Dubai, you will need to analyze the different factors. However, most businesses in today’s time are opting for free zone limited liability company.

Entrepreneurs in Dubai are opting for doing open business across Dubai because they get various affordable options too. Hence, depending on the requirement, individuals can opt for freezone company setup.

What is a limited liability company and freezone?

Limited Liability is one of the standard companies in the UAE. It is one of the most popular in the mainland company setup in UAE. Limited liability company in Dubai have various liability features to manage court jurisdictions and debts. With the help of LLC company Dubai, entrepreneurs can manage a wide range of activities.

However, the company will need to gain permission from DED. Some of the prominent business activities that you can conduct in terms of LLC company Dubai include finance, agriculture and more.

Free zones are the special areas in the UAE. The freezone company can conduct various activities which are industry-specific. Furthermore, these would play an important role in enhancing international trade. Freezone company setup is extremely easy and convenient. With the availability of so many free zones in this country, it becomes convenient to boost construction.

Why is LLC company formation in Dubai beneficial?

Choosing a limited liability company Dubai can offer a wide range of benefits. Whether you are setting up a company in Dubai, UAE or an old one, you will need to consider the basic ones only. Compared to onshore businesses, LLC company formation in Dubai is more beneficial.

Some the prominent benefits of free zone limited liability company include the following:
1. Limited Liability Protection

LLC company formation in Dubai offers extensive opportunities to entrepreneurs especially in terms of personal protection. Often there is a possibility of something going wrong and affecting the business. However, in terms of a free zone limited liability company, the liability will completely depend on the amount you’ve invested. This will help to stay protected against any bad debts. This is mostly because it has a separate legal entity.

2. Tax breaks

Entrepreneurs opting for LLC free zone company setup get several benefits in tax. The LLC companies have the benefit of no tax. Moreover, companies in the free zone do not need to pay any extra taxes. This will play an important role in saving company expenditures.

3. Low startup cost

Entrepreneurs with limited amounts can easily opt for low startup costs. This is not only effective for first time entrepreneurs but the experienced ones too. The only amount you will need is the minimal application cost. Unlike other areas, you will not need any additional upfront costs.

4. Easy branch formation

LLC free zone company setup is pretty easy to do. The LLC company formation in the free zone is one of the best ways to gain momentum for your business. If you are a foreign company trying to establish yourself in the UAE market, you should consider an LLC company. You can easily set up branch offices in this region. Apart from that, setting up branch offices will help you establish yourself in the local market. If you want, you can also open more than one office in the free zones of the UAE.

5. Multiple shareholder setup

LLC company Dubai can operate with multiple shareholders. Your company can have two to fifty partners and the branch can only be done accordingly. They are constantly working towards establishing their presence in the Dubai market. The corporate entities need to check the number of their shareholders to get benefits.

What are the licenses offered for LLC companies in Dubai?

Entrepreneurs deciding to establish LLC company Dubai should know the difference between a free zone and Mainland. The free zones allow flexibility to the entrepreneurs of gaining licenses.

Unlike other places, setting up a company in Dubai can be extremely beneficial. It helps to save up against the risk of proprietorship loss. Some of the common licenses you can get to ensure hassle-free free zone limited liability company are:

  • Commercial License
  • Industrial License
  • Professional License

The free zone limited liability company is beneficial for businesses who need a professional license. With the help of a professional license you can easily operate with a number of clients in the local market. Moreover, it is very easy and affordable to open your business in free zones. Therefore, you will not have to worry about debts.

Comparatively, businesses should consider LLC type. However, this will also decide the business activities, number of visas and nature of the facility that will open here.

LLC company benefits of mainland and freezone

Most LLC company owners are confused about the free zone and Mainland. When you opt for LLC company formation in Dubai mainland, If you are a foreign investor, now you can get 100% ownership.

Nonetheless, entrepreneurs opting for free zone limited liability companies in Dubai, they get the benefit of 100% ownership. It also provides several tax exemptions that save a significant amount of money. If you have partners within your company, you also get the benefit of diving shares. Hence, no external body can interfere in internal affairs.

Offices in Free Zones

Commercial and professional license holders are required to regulate businesses carefully. However, the professional license holders can easily work within the market. Since LLC companies are involved mostly with trade, they can easily trade within the country. There are no restrictions.

If you have a business license for a free zone, businesses can easily operate in this area. However, there is no requirement of a physical office. Many offices also consider leasing a physical office space or just the equipment. Entrepreneurs who want to set up business in free zones should consider reaching out to experts.

As an LLC company in a free zone, businesses will need to lease an area of around 200 sq ft for a year. However, a certificate of tenancy needs to be submitted to the Department of Economic Development to gain approval. If a particular company fails to gain the license, they will not be able to operate.

Authority approvals

It is extremely crucial to get approvals from respective authorities for business development. Free zones have their authorities unlike the mainland. However, according to our experience, you will not necessarily need any approval from external authority.

The LLC company Dubai before formation needs to get approvals from respective authorities. Some of the prominent authorities to get the approvals from are the Ministry of Immigration, Des and MOL. Businesses need to submit all their respective documents. However, in some cases, you will need to get approval from external authorities like the Knowledge and Human Development Authority (KHDA).

Entrepreneurs with tight budgets should consider company formation in the Dubai free zone. With the availability of so many companies operating for years, free zones have become a major choice for many. Thus, Business Link UAE can assist you in the process of free zone limited liability company formation in Dubai.

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