Local UAE Company

These companies are formed by the Department of Economic Development, and are the official vehicle through which people can conduct business in the local UAE market.

The Department of Economic Development (DED) is the government body responsible for driving the economic agenda of the Emirate of Dubai. The DED supports the structural transformation of Dubai into a diversified, innovative, service-based economy that aims to improve the business environment and accelerate productivity and growth. The DED and its agencies develop economic plans and policies, identify and support the growth of strategic sectors, and provide services to domestic and international investors and businesses. DED companies are the official vehicles through which clients can carry out their business activities in the local market. The most popular form of a DED company is the Local Liability Company (LLC). One of the main regulations surrounding mainland companies is that they must be formed in partnership with a UAE national, who either acts as a shareholder of the company and local service agent. The capacity of the UAE national is generally decided based on the business activity and legal form of the company. Recent changes to regulations have removed the requirement to have a local sponsor, depending on what the activity of the company is.

Business activities for LLC’s are generally classified as commercial, professional and industrial. Some of the commercial activities are trading, import-export, investment, real estate development, brokerage, banking and insurance. Professional activities include services that use professional abilities and skills such as medical services, consultancy, IT services, education, farming and food & beverage. Industrial activities include all forms of manufacturing activities.

An LLC can have either a Commercial, Professional or Industrial License. In the cases where a minimum of 51% ownership must be held by a UAE National (known as the “local sponsor”),and the remaining 49% by the foreign shareholder, laws permit the issuance of constitutional documents for an LLC to protect the interests of the foreign shareholder, including but not limited to profit distribution, asset entitlement, appointment of managers, powers of administration, and influence in decision making. Alpha Management can help clients source a dependable local agent or local sponsor if required. The minimum number of shareholders for an LLC is two, and the maximum is fifty. One shareholder LLC’s are also permitted subject to various conditions. No bank account deposit is required at the time of incorporation. An annual audit is required. Please note that LLC’s are not allowed to practice legal, consultancy, auditing, accountancy services or any other type of consulting service. These activities can be only practiced if company’s legal status is that of a Civil Company or a Branch. if you are interested in providing these types of services, please contact us for more details.

If you would like to explore more company formation options and the other services that Alpha Management can provide, please have a look at the links below.

offshore and free-zone COMPANY FORMATION

FINANCIAL OFFICER & Compliance services

accounting and other services

Freelance permits

It can be confusing to know where to start when it comes to Offshore and Free-Zone company formation. Each client has different goals and requirements depending on their situation. Alpha Management will assess what is best for you and be able to recommend what type of company and which jurisdiction suits your particular criteria. We will present all the options available whilst bearing in mind any budget limitations you may have. If you would like to discuss Offshore or Free-Zone company formation, please contact us here.