Limited Liability Company
Overview
LIMITED LIABILITY COMPANY IN UAE
An LLC is the corporate entity which is commonly established to carry on commercial and/or trading activities in the UAE. It is governed by Law No. 2 of 2015 relating to commercial companies (Commercial Companies Law), has UAE domicile and may be owned by one or up to 50 shareholders who may hold their shares in the personal capacity or through another corporate entity without any local agent or local sponsor.
An LLC does not need to have a minimum share capital but its share capital must be adequate for its purposes. There is currently no requirement for the share capital to be paid up, but the shareholders will be liable up to the extent of their unpaid share capital for any third-party claims against the LLC which cannot otherwise be settled out of its cash reserves and/or assets.
An LLC can be managed by a manager (also referred to as a Director), or a board of managers who are appointed by the shareholders pursuant to the LLC’s memorandum of association or at general assembly. As there is no concept of ultra vires under the Commercial Companies Law, the manager’s acts will bind the LLC. Sanctions may, however, be imposed upon a manager for improper use of power.
Falling under industrial, commercial, professional, tourism, agricultural and occupational, the UAE offers more than 2,000 business activities, and the LLC will indicate chosen business activity. You are also allowed to form an LLC company with multiple business activities, subject to approvals.
The trade name of your new business must reflect your chosen activity/ies, and it must get approved. Approval is subject to the trade name not being in use or registered previously, and its observance of public morals and the public order of the UAE.
In some instances, a trademark needs to accompany the trade name. In the emirate where your business is located, the department of economic development (DEC) will approve and register your trade name. Trademarks are registered at a federal level, by the Ministry of Economy. Our Beijing green professional and proficient at what they do, be it handling a query or getting answers to all your questions.
WHAT NAME CAN I USE FOR MY LIMITED LIABILITY COMPANY?
WHAT BUSINESS CAN I DO UNDER LIMITED LIABILITY COMPANY
Prior to the application for a commercial license in Dubai, one needs to decide on the trading activities that are going to be conducted under the same. Have a clear understanding of the type or category of your business activity before you set up a business in Dubai. Business activities related to buying and selling and certain service-oriented endeavors come under Commercial License. The major activities that come under the commercial license in Dubai, UAE are listed below.
Logistics / Cargo
Import and Export
Tourism/ Travel
Brokerege
Product -Oriented Sales
Rental Business
Real State
Investment
