LLC company formation in Dubai pros and cons

March 25, 2022
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Sheri gill
Posted in Business
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Incorporation of your company in the United Arab Emirates, An important advantage of incorporating a limited liability company in Dubai is that it offers investors the opportunity to do business in any emirate within the borders of the country, but is that all? Definitely not! Investors need to consider the pros and cons of any trading decision they wish to make and the impact it will have over the long term.

Any LLC company (considered as a mainland option) in Dubai must be registered with the Dubai Department of Economic Development where all processes take place. The incorporation of the company will be carried out in accordance with the Commercial Capital Law of the United Arab Emirates.

Creative zone has years of experience in LLC company formation in Dubai, here below highlight the main concerns for investors regarding the pros and cons of incorporating a limited liability company in Dubai.

Pros/Advantages of Incorporating a Limited Liability Company in Dubai

Let us now highlight the features that differentiate the Limited Liability Company from its counterpart, namely the Incorporation of the Free Zone Company.

No restrictions on business location

The UAE government allows investors in LLC business to incorporate their company anywhere in the Emirates without restrictions. So by forming an LLC company in Dubai you will enjoy this fantastic benefit that allows you to set up offices anywhere, rent freedom that allows you to rent offices and properties without having to worry about their location. Insurance, banking or investments. Of course, such a company also enjoys the freedom to offer its goods and services anywhere in the country.

Another benefit investors should be aware of is the fact that with an LLC company there are no restrictions on the amount of visas you can obtain for your employees. Another reason is that the company is formed between a foreign investor and a UAE/Gulf national known as the local partner, with the partner owning 51% of the shares in the company while the investor owns 49%; this makes your business safer and more trustworthy in the market.

Disadvantages/disadvantages of forming an LLC company in Dubai

Every decision we make has two aspects, and in that case, just as you will enjoy the many benefits of a limited liability company, you should also prepare for the downside that that decision could bring.

Here is a List of disadvantages associated with incorporating a limited liability company in Dubai. In most cases, the UAE government requires you to provide external assistance to validate your business. You can get this in your home country and it may cost some money and time

Employers are required to renew their employees’ visas every two years, compared to three years for companies in free zones

The time it takes to incorporate an LLC company in Dubai is generally between 8 and 10 weeks, which is considerably longer than in free zones

With a limited liability company, you are responsible for paying taxes

Although the choice of company depends on what you want to incorporate, you can also enlist the support of reliable and knowledgeable advisors in Dubai, who will help get you more information and even help you find a local partner.