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There are different ways of setting up a business in the UAE, but the most popular one is a limited liability company (LLC).
An LLC can carry out almost all types of business activities except insurance, banking, investment, accountancy, law, consultancy and auditing; thus, giving it a wider market reach. And depending on the firm’s business activity, size and nature, it may or may not require a specific minimum capital funding.
LLC formation requires at least two and a maximum of 50 individuals, but without the need of a board of directors. However, it is mandatory to appoint a UAE national who will have 51% ownership of the company and an accredited auditor to promote transparency. The company must also be managed by between one and five managers who will exercise full administrative power unless stated otherwise in the contract or the memorandum of association (MOA). The manager/s may be a partner/s or any other individual/s.
In Abu Dhabi, Dubai and Sharjah, trade name approval is applied at the Dubai Economic Department (DED). In other emirates, at the Chamber of Commerce. Once all the requirements are met, the DED or the particular emirate’s licencing authority must then issue the company a licence. This necessitates the registration of the firm at the Chamber of Commerce.
Businessmen can always approach a business setup firm to handle all the legalities of opening a company.
• LLC formation needs manager, auditor and local
• In Abu Dhabi, Dubai and Sharjah, approach DED
• Business setup companies are aplenty in the UAE
Source: Ellen Joyce Soriano, Special to Classifieds
The writer is a freelancer