Limited Liability Company, referred to as an LLC, is the most popular method of establishing a commercial company in the United Arab Emirates. An LLC is a private company whose shares cannot be offered to the public.

Under the Commercial Companies Law, foreign investors are allowed to own 49% equity in the company and 51% of the equity must be held by one or more UAE National(s) or by a UAE owned Company. However, the law permits profit and losses to be distributed disproportionately to the shareholding ratio that is outlined in the LLC Memorandum of Association.

There are no restrictions based on the nationality of the management team and an LLC requires a minimum of two (2) shareholders and a maximum of fifty (50) shareholders.

Benefits of LLC

Limited Liability Companies may bring a number of benefits to individuals or companies:

  • Easy to open global corporate bank accounts once the LLC is created.
  • Expanded access in trading in the GCC markets.
  • LLC offers access to domestic markets of the UAE.
  • Through a LLC, international entrepreneurs obtain a Trade License from the Department of Economics.