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 process and a broad range of 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 has 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 PRO Partner Group, 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 PRO Partner Group, 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 set-up also removes any pressure for you to independently find and maintain a trustworthy and reliable local sponsor relationship.
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 has stipulated 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.