Limited Liability Company

Limited Liability Company

Definition: 
A Limited Liability Company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC must have between 2 - 50 shareholders, each of whom is liable only to the extent of his or her share in the capital of the company. LLCs can conduct any industrial or commercial business, but not professional – except banking, insurance or investment. LLCs cannot practice law, auditing, accountancy or any other type of consulting service.
The business name should be the same as the trade name or contain the names of one or more of its partners. The phrase “Limited Liability Company” must also be added to the business name. LLCs must appoint between 1 - 5 managers for the business. The managers may be selected from the partners. Unless the Memorandum of Association states otherwise, the manager has full powers of administration. Within the scope of his or her powers, the manager’s actions and commitments are binding to the business. LLCs must appoint a UAE-accredited auditor. In case of the death of any partner, his or her shares are transferred to the heirs mentioned in the will.

Ownership Rules:  
At least 51% of LLCs must be owned by UAE Nationals, and can be owed by GCC nationals by up to 100%. The Memorandum of Association can distribute profits in a different ratio. Shares of an LLC cannot be offered to the public. The company may not resort to public subscription to establish or increase its capital or secure loans, and it may not issue any negotiable stocks or shares.

Advantages:
LLC company setup allows you to do business in any part of UAE.
LLC company Formation has no limitations in getting employment visas
LLC company setup has flexibility to rent office anywhere
LLC company setup has no limitation in office space requirement and recruiting process.
LLC company setup has no yearly auditing
The most popular method of establishing a commercial company in UAE
UAE LLC offers unrivalled access to the wider UAE economy
No specific minimum capital requirements
The investor becomes the partner in the company
The investor gets the investor visa under which he/her enjoys the investor’s status in the Emirates along with his/her family
Easy to open global /local corporate bank account

Special approvals:
Tourism activities
Educational services
Architectural and engineering consultancy
Shipping, freight forwarding and logistic activities
Companies in Dubai World Communities
Health Care activities

Civil Company

Definition: 
A Civil Company is a business partnership for professionals in recognized fields such as doctors, lawyers, engineers and accountants. A Civil Company can only practice professional business and is 100% owned by professional partners.

Ownership Rules:  
A Civil Company can be owned by professional partners of any nationality. If the owner is a National of a country other than the UAE or GCC, they require local Service Agent (LSA). A foreign company can be a partner in a Civil Company, as long as the foreign company is in the same profession as the civil company.

Activity-based Exceptions:
An engineering Civil Company must have one partner who is a UAE National, who owns no less than 51% of the business and who must be an engineer of the same business activity. A Civil Company that offers legal services does not require a local service agent.

Branch of a Foreign Company Branch or Representative Office:

Definition:    
A Branch of a Foreign Company must have a manager to represent the company and to open the branch, appointed by the Board of Directors.
The branch will become the company’s Dubai headquarters, and its business shall be subject to the provisions of the laws of Dubai and the UAE.
The branch can conduct selected commercial and professional activities, but cannot import goods into Dubai; this will be managed by a local trade or commercial agency. The branch office must have an independent budget, its own profit/loss statements and must appoint a UAE-accredited auditor. A Branch of Foreign Company also requires a Local Service Agent (LSA), who can be a UAE National or a company owned by one or more UAE Nationals. A Representative Office for Commercial Activities is not a business structure in its own right but it is a business activity that a branch can conduct. It has its own criteria, which includes the authorization to promote and market the parent company’s business – but not conduct business operations. A Representative Office requires a Local Service Agent (LSA), who can be a UAE National or a company owned by one or more UAE Nationals.

Ownership Rules:   
​A Branch of a Foreign Company or a Representative Office is 100% owned by the parent company. It must operate under the same name, conduct the same business as the managing firm, and must have operated at least two years in order to open a branch in Dubai

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