LLC / SE

Limited Liability Company / Sole Establishment

LLC Features:

  • Share of foreign shareholders/owner: 49%
  • No taxation
  • No export and import duties at all
  • Repatriation of capital and profit: 100%
  • Access to the UAE market and regional markets.
  • No currency control and regulation
  • Investor visas for investors and their families
  • Easy opening bank accounts in the UAE
  • For an LLC, three types of licences are available: commercial, industrial and service ones.
  • The company's authorized capital is specified in the corporate documents, but it does not need to be deposited into the bank account.
  • The specified capital of the company is equal to AED 300,000.

Note:

The number of shareholders for an LLC: from 2 to 50

51% of the company shall be owned by the UAE citizen.

The income may be divided between foreign and local partners disproportionately to their share interest.

Typically, a local partner is paid a small annual fee, and it is not involved in the company management.

Compulsory Accounting Records.

Annual audit report.

SE Features:

  • Share of foreign shareholders/owner: 100%
  • No taxation
  • No export and import duties at all
  • Repatriation of capital and profit: 100%
  • Access to the UAE market and regional markets
  • No currency control and regulation
  • Investor visas for investors and their families
  • Easy opening bank accounts in the UAE
  • Only a service licence is available for an SE

Note:

The number of founders for an SE: 1

An SE shall have a local service agent (LSA).

The LSA services shall be paid pursuant to the scope of services provided for an SE (assistance in getting licences, visas and various permits).

The SE owner’s liability is unlimited. This means that it is liable with all its personal property for an SE debts.

Compulsory Accounting Records.

Annual audit report.

BACKGROUND:

Each of the seven emirates — Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah — have own conditions and procedures for starting a business.

Operating Licence.

The cost of the licence for an LLC is communicated by the government regulatory agency on the last day of registration of the company, since when calculating the cost of the licence, such factors as the company’s name, 5% of the annual office space rent, founders’ nationality etc. are taken into account.

An LLC may conduct any activities, except banking, insurance and investment.

The cost of the licence for an IE starts at AED 17,000 and with a small office space is not too high. Registration time – 90 minutes.

An IE may conduct only service activities.

A license for an LLC/IE is issued for a year.

An LLC/IE may arrange networks and branches throughout the UAE.

Accounting.

An LLC shall keep records of all the transactions, and the accounting documents shall clearly and properly recognize the status of the company's financial assets.

The accounting documents shall be kept in the company’s office for at least 5 years after the end of the financial year of the company.

Requirements to Office.

A local company may purchase/lease commercial or non-commercial real estate anywhere in the UAE.

– If you are interested and would like to get more information or advice on any issue related to the LLC, just write to me!

Sophia Parkhomenko

Business consultant

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Sofia