Starting Limited Liability Company & Sponsorship- Procedure, Requirements

A LLC Company Formation in UAE includes, it can include shareholders from two to 50. The liability of investor Is restricted to their portion shares in the capital. In UAE, least amount capital obligation law has vanished on 10th August 2009.

The memorandum of association should include the following:

Business Setup Name with objectives, location of head office, duration, identity of shareholder with their necessary information like nationalities, addresses, and address od residence & amount of capital along with the share of each shareholder and a statement of capital paid in kind (if any), complete data of company’s managers, it should also have profit and loss distribution among shareholders not mandatory to have same fraction as the capital, and the adaptation method of notification.

limited-liability company in UAE can be started without Bank Deposit Certificate and Auditor Certificate. In Abu Dhabi, minimum fund obligation is Dh150,000. Managers will be allowed to handle as soon as necessary verifications made. The managers might be more than 1 in numbers and they should have powers related to administration and finances. One partner can transfer his share in the company or part of it to another partner or to a third party. The managers should not exceed in more than 5 in number, it is also not mandatory for them to be part of a company. Non-GCC nationalist can only have 49 percent of an LLC. As far as profit and loss concerned it will be a ratio of 80% for investor and 20% local UAE sponsor.

In order to meet the requirement of Commercial Companies Act, It is common to hire auditors. Issuance of share certificate is not permissible as per law. Confirmation of proprietorship in the organization is connected and proves by the rate contributed, doled out, or moved in the offer capital.

Silent Partner

In this type of settlement company usually pays an annual Sponsorship fee to the local sponsor in order to take control of company Sponsor act as a sleeping partner.

Paperwork required requiring for Initial Approval

Proof of reserved Business setup name with Registration and licensing application.

  • For Non-GCC Nationals Photocopy of applicant’s passport along with residence permit/visa particulars
  • For UAE nationals photocopy of applicant’s naturalization identification
  • For Non-GCC Sponsor should provide No-objection certificate for the applicants.
  • No objection certificate from sponsor of Director & passport copy of director
  • Permit of the court to conduct business in case if applicants below 21 years.
  • Other relevant Approval.
  • The Company’s Board of Directors determination to buy in to the new organization if the accomplice is a current corporate element in UAE or abroad (the determination must be authenticated by UAE international safe haven/office or by a GCC state government office/office and UAE Ministry of Foreign Affairs, and properly converted into Arabic).

Credentials required after getting the Initial Approval

  • Receipt of Initial Approval.
  • Documents submitted while applying for Initial Approval.
  • Photocopy of the official site chosen for lease with plot number along with an Original photocopy of the Memorandum of Association duly confirmed authenticated by the Notary Public.
  • Contract related to Limited Liability Company
  • If the Shareholder is an already corporate body in UAE or abroad then following documents should be       presented:
  1. a) Memorandum of Association. b)    Commercial Register Certificate after attestation by UAE             embassy Ministry of Foreign Affairs, and duly translated into Arabic).


Approximate cost for general trading company

  • Business License Fee: AED 700
  • Commercial License Fees: AED 700
  • General business setup-uncommon expenses for once just (this sum isn’t pertinent to other exchanging exercises) Renewal Fees (General Trading unique): Dh3000: AED 15000
  • Cultural Fees set by Government AED 10
  • organizational Fees AED 50
  • In case of trade Name other than Non-Arabic Fee (Dh2000 extra fees for words like Emirates, Gulf, International, Abbreviation. Maximum Trade Name Fees: Dh3000): AED 3000
  • permission Fee for Name board AED 350
  • Market Fees usually have 5% of shop/office rent, amount varies depends on occupancy amount AED 1250
  • Partner Accommodation Fees (Dh500 for each expatriate Partner). If any of the partners use to pay his housing expenses on another license, DED can be consulted to remove his fees after getting Payment Voucher AED 1000
  • Waste management service fees AED 1000
  • Service Improvement Fees (Commercial) AED 400
  • Chamber of Commerce Fees AED 1200
  • Ministry of Economy Fees AED 3000
  • Local Fees – Trade License AED 200
  • Commercial License Fees-Tejari AED 150
  • Total expected License cost (approximately) AED 27310


Sponsor Ship

One of the main elements to conduct the business-related activity is to select local sponsor which owns 51 percent of the business. Sponsorship is mandatory for foreign origin who desires to launch business the shareholding structure of GCC states is still a 51 percent (local) and 49 percent (expat). This circumstance doesn’t apply to free zones.

Types of sponsorship

Corporate Sponsorship – A limited-liability company in UAE based in UAE led by UAE nationals will hold 51 percent of the share and liabilities of a company owned by a partner of foreign origin. In this case, the company will sponsor the business.

Individual Sponsorship– When a GCC national in his/her personal capacity becomes your sponsor. It is not necessary that he/she is also conducting a business in the same or different domain. The sponsor can be a professional, a government servant in the UAE or a businessman.

The UAE national will hold a partnership 51per cent share/Liability of the company.

Local Service Agent – When a professional – desires to launch business by offering professional capability. A local service agent is required in this case. This agent will be representative of the company and will deal with all administrative related issues and communication with government departments. Hs /she will not own a 51 percent share of your company.

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