Dubai is one of the best places to trade in UAE. Investors look for LLC company formation in Dubai apart from looking forward to establishing companies in free zones that provide better infrastructure to develop a business.
Different legal business structures have their own advantages. For example, a business in the free zone is not charged for taxes. Therefore, every business setup in Dubai has its own benefits. Some investors think that it is better not to opt for an LLC company in Dubai. However, I am going to say why opting for an LLC company is the best decision.
The reason why investors do not opt for an LLC company is that it requires a partnership. 51% of the ownership of the company must be with a UAE national.
Also, an LLC company formation in Dubai allows an investor to open corporate bank accounts. Therefore, investors think that they have to share the profits. However, investors should know that they do not have to share the returns with their partner. The reason is, an LLC company allows investors to utilize different profit sharing schemes. You can either pay him a fixed annual fee or share a percentage of the profits.
However, it is seen that investors prefer to pay an annual fee because in this case, they do not have to let the partner know about the accounts and profits of the company. You can make a legal agreement with your partner regarding this.
What are the other advantages that you get?
An LLC company has a lot of benefits which other legal business structures do not give to the investors.
• Investors can access the local trade markets of Dubai. Therefore, the profits can be doubled.
• Investors can carry out most of the business activities. Only a few activities are restricted like finances, security, etc.
• According to the business activity, investors may or may not need a minimum capital. This depends on the size and nature of the business.
• Investors can easily open a corporate business account and can even get foreign exchanges.
• Investors can lease office space within the city at a minimum price. They can also opt for office packages and suites.
Moreover, an LLC company can be formed with two persons. Their liability to the company is limited to the number of shares that they have. Investors can leave the management of the company to any third party.
An LLC company formation takes only a few weeks. The documents required are also minimum. Thus, the investors face no trouble.
Therefore, to conclude, opening an LLC company is a wise decision as investors get a lot of benefits which help them to earn more profits.