Dubai, over the last several years, has become a very attractive option for international businesses. Through the establishment of free trade zones throughout Dubai and the rest of the United Arab Emirates, foreign business owners can retain 100% ownership of their companies while taking advantage of % free repatriation of capital and profits along with a 100% exemption from import and export duties.
There is also the option to choose an LLC setup outside of the free zone. This will require a national sponsor with 51% share in the business. However, this national sponsor is not an active partner in the business, and the liability or responsibility of the sponsor is extremely limited. The national would be similar to a silent partner in other locations around the world.
For many business owners within and outside of the free zones, the best option is a Dubai LLC setup. The use of the limited liability company (LLC) provides several advantages that are well worth considering.
A Dubai LLC setup can be a relatively quick and easy process with the assistance of our attorneys at STA Law Firm to provide guidance and manage the process. Each LLC can have between two and fifty shareholders, with the shareholders responsible and liable for the business based on the value of their shares in the company (except the non free zone setup).
In the process, the legal arrangement between the foreign business and the sponsor will be required, if applicable for the Dubai LLC setup. There will also be the need to select a type of business structure, the activities of the business, the name of the company and also to choose a free zone.
The choice of free zone is important as companies operating in the free zone have to meet the requirements and approval of the free zone authority. Additional documents and reports will also be required, all which can be facilitated through our lawyer at STA Law Firm.