A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Such companies are recognised as offering a suitable structure for organisations interested in developing a long term relationship in the local market.
In UAE, The minimum capital requirement law was abolished on 10th August 2009. While foreign equity in the company may not exceed 49%, profit and loss distribution can be prescribed. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.
The following steps are required in establishing a limited liability company in Dubai.
- Select a commercial name for the company and have it approved by the Licensing Department of the Economic Department.
- Get initial approval for the activity from Economic Department.
- Draw up the company’s Memorandum of Association and have it notarised by a Notary Public in the Dubai Courts.
- Seek approval from the Department of Economic Development and apply for entry in the Commercial Register.
- Once approval is granted, the company will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce’s Bulletin. The licence will then be issued by the Department of Economic Development.
- The company should then be registered with the Dubai Chamber of Commerce and Industry.