LLC Structure in Detail
Why LLC is Most Popular
The LLC offers flexibility, limited liability protection, simplified governance, and 100% foreign ownership (since 2021 CCL amendment).
Key Features
Ownership: 1-50 shareholders, 100% foreign ownership, shares not publicly traded, transfer requires notarization.
Capital: No federal minimum, some emirates or activities may specify minimums, capital can be cash or in-kind.
Management: Managed by one or more managers (general or limited powers), managers can be shareholders or external, appointments are for renewable terms.
Formation Steps
- Reserve trade name with DED or free zone
- Obtain initial approval
- Draft MOA (Memorandum of Association)
- Notarize MOA at UAE notary public
- Submit license application with required documents
- Pay licensing and registration fees
- Receive trade license (5-15 business days)
- Register for Corporate Tax and VAT if applicable
- Open corporate bank account
- Process establishment card for hiring and visas
Articles of Association (AOA)
Defines company name, purpose, share capital, management structure, profit distribution rules, share transfer procedures, and dissolution procedures.
Governance Requirements
Annual General Assembly (AGM) required. Financial statements must be audited. Auditor appointed at AGM. Records maintained for 5+ years. Corporate Tax filings as required.
Changes to Company Structure
Adding shareholders requires MOA amendment and notarization. Changing activities requires DED approval. Capital changes require MOA amendment. Manager changes require resolution and notarization. Dissolution requires formal liquidation process.