Dubai - Dubai LLC Formation | A Popular Legal Structure For Setting Up Local Business

https://www.varaluae.com/company-formation-in-dubai/dubai-llc-formation/ #DubaiLLCFormation: Shareholding pattern, advantages, 7 categories of business organization and 3 business license categories Dubai LLc formation: Foreign investors have fought shy of making a local company (LLC) because of the 51% ownership that must be given to local nationals. Not to worry. You can still take advantage of using LLC without having to share your returns on the investments. Dubai LLC formation allows companies to come up with flexible, different profit sharing arrangements with your local sponsor. These can give you enormous relief, especially since the 51% local equity is a must for trading companies. However you can also agree to pay a fixed amount to your sponsor regardless of the financial status of your company. It’s not surprising, therefore, that the LLC is the most popular form of business organization in UAE. A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Most companies with expatriate partners have opted for this type of Dubai company formation, due to the fact that this is the only option which will give maximum legal ownership i.e. 49% to the expatriates for a trading license. Unless of course you incorporate in a free zone. While foreign equity in the company may not exceed 49%, profit and loss distribution, is generally all yours. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.