Company Formation in Dubai – Everything You should know


Company Formation in Dubai – Everything You should know

Business structures are highly categorized in partnerships, sole proprietorships and companies. Each business has its advantages and disadvantages. But a lot of people choose to operate as a company as it is well regarded as an individual legal entity from its owner. Owners are liable only for the liabilities of the company for their company’s ownership.

What about legal entities?
Company formation is quite complicated in Dubai and it may not be easy to do it right without proper knowledge of various requirements, types of companies and registration process. A company which is owned by one person is the one in which one person holds the whole share. Such types of companies in Dubai are owned by a UAE national, a GCC national or any other company whose shares are completely owned by UAE nationals or GCC nationals. The name of the owner followed by LLC should be included in the company name. The shares of such company cannot be sold in public because there are further requirements to go public and for a one-person company.

There are 2 to 50 stockholders for company formation in Dubai in case of LLC. UAE nationals should be the owner of at least 51% of shares for LLC registration. The accounts of those companies should be auditor accredited in the country.  The shares of LLC are traded publicly on stock exchange. LLC and individual person companies should bear corporate tax which is different from the owner’s tax. Two or more companies own the partnership companies who may either be general partners or limited partners. Limited partners are foreign nationals and general ones are nationals from the UAE.

One person owns and runs sole proprietorship. The owner is held liable personally for financial obligations of the business. It means the personal assets of the owner can be useful for settlement if the company cannot meet financial requirements.

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