Limited
Liability Company (LLC)

Limited Liability Company (LLC)

Limited Liability Companies (LLC) are one of the most common types of commercial entities that entrepreneurs and corporations can establish in the UAE. With a quick and easy setup process and a broad range of available business incentives, LLCs are widely preferred by entrepreneurs and corporations that want to penetrate the UAE market and establish a solid footing in the Middle East region.

The law on commercial entities in UAE requires Limited Liability Companies to have at least one or more local sponsors or Emirati partners. This means the local partner/sponsor(s) must own a minimum of 51 percent of the shares in the LLC. More recently and following the release of the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment, the UAE Cabinet announced the positive list of activities covered by the FDI Law, which will allow 100% foreign ownership or greater ownership than 49%. Please contact us directly for further information on 100% ownership.

At Sovereign PPG, we understand that some foreign investors might be concerned about the 51% 49% shareholding arrangement, and the thought that another individual will hold shares in your company. As such, we have developed a secure and trusted nominee structure for LLC company formation that ensures the interests of our clients are fully protected in accordance with the law.

If you choose to partner with Sovereign PPG, we will be the Corporate Emirati partner of your LLC company, ensuring you can run your day-to-day business operations without any interference. This setup also removes any pressure for you to independently find and maintain a trustworthy and reliable local sponsor relationship.

How is an LLC in the UAE Set Up and Structured?

One of the key advantages of an LLC setup is that foreign partners have limited liability exposure due to their share in the total investment capital. The Emirate of Abu Dhabi requires no specific minimum share capital amount, and commercial law stipulates only that the capital should be adequate for the company’s needs.

Exceptions to this rule include activities such as real estate and recruitment, since these can only be completed by 100 percent locally owned entities. Our company formation specialists will advise you on the best way to structure your business based on the activities you wish to undertake.

Other Benefits:

• No required minimum capital investment
• No local corporate tax
• A trade licence is issued for LLC entities that have a physical office or business space
• Any document written in a foreign language should be translated into Arabic by a legal translator and duly certified by the Ministry of Foreign Affairs and Ministry of Justice, for companies incorporated abroad.

Sovereign PPG will help you through every step of the process. These include:

• Applying for your chosen corporate name under the Licensing Department
• Drafting a Memorandum of Association (MOA) for the new company
• Attesting the MOA by the Notary Public
• Submitting an application with the Economic Department
• Filing an entry with the Commercial Register
• Collection of the licence from the Economic Department
• Notarisation, legalisation and attestation of legal documents
• Visa applications
• Family visas

Advantages of Partnering with Sovereign PPG:

• As your service provider, we will use our experience to handle all the necessary paperwork to establish your business in a timely manner. This includes applying for visas and licences, obtaining labour quotas, translation services and assisting with notarisation of documents.
• The General Manager has full powers to manage the daily operations of your company.
• Through our corporate office, you will have access to ongoing services and around the clock support.
• We will offer events and networking opportunities with key local contacts and government departments.
• In the event of a change in your circumstances, we would be sad to see you leave. However, we will assist you in either terminating your licence or share transferring to a new sponsor.