To start their own company is a dream of every individual, there should be a strong will and hardworking mentality by the Entrepreneur to make the dream alive. There are different kinds of business you can start with, the best among us to start a Limited Liability Company (LLC).
It is a very common form of business entity formed for business activities. A Limited Liability Company can be formed by a minimum of two partners and the maximum number should not be more than 50. The liability of each person is limited to the number of shares owned by him in the total share capital of the company.
There should be a minimum of 51% equity participation by local partners.
Another main thing related to LLC is that the name of the Company should reflect its purpose and the phrase “LLC” shall be added to the name of the entity. The shares of LLC are not opened for public subscription.
As per the commercial companies Law LLCs may be licensed to engage in a number of activities except for banking, insurance, and business investments in others’ names. The profit or loss generating out of the business will be shared equally between the shareholders as per their shareholding pattern in the company.
Then the Economic Department will issue the license. After getting the License then register the Company with the Ministry of Labor and the Department of Immigration.
The major chunk of the business enterprise in UAE happens to be LLC because of the ease of the operation model of LLC. The cost factor and the easiness in starting the business make the LLC type of company a major attraction for the budding entrepreneurs in UAE.
You may always feel free to get in touch at Emirates Chartered Accountants Group, Dubai.
Mr. Viju Divakaran | Sr. Consultant
Mob: +971 554028899