5 Reasons Why LLC is the Most Common Company Type in Dubai and the
Setting up a company anywhere in the world can be daunting as it includes a lot of interference of government authorities and requires too many approvals, licenses, registration, agreement, certificates, visas, and whatnot. Dubai is no different in this scenario. No doubt the business environment and policies of Dubai government are surely attractive but understanding various jurisdiction and company types that can be set up here may be a little confusing, especially for entrepreneurs. So, today, I would like to talk about one specific mainland option –LLC company formation in Dubai as it would help you understand why LLC formation can be beneficial for you and what makes it popular company setup in Dubai and other emirates.
Fast and easy setup
One reason which makes LLC formation in Dubai and the UAE the most popular type of company setup is the incredible ease it offers. Unlike other setups, there are fewer hoops to jump through while establishing business as an LLC in the mainland. The government has been recently taking new initiatives which have made this process easy and is planning to take some more which would benefit business investors and entrepreneurs directly or indirectly. In fact, if you are meeting eligibility criteria and you can register with Dubai Department of Economic Development within just 90 minutes without committing to a lease agreement.
Practical setup cost
There are many entrepreneurs who believe that company formation in UAE is an expensive investment which could be impractical for them. But, this is not true. The cost of forming an LLC is quite comparable to free zones. The starting price of license applications is not too high; however, the cost can go higher depending upon the nature of the business.
Unlimited number of visa
The best thing about LLC company formation in Dubai is that entrepreneurs can get an unlimited number of visas. Nonetheless, there is some caveat and that is the more visas you apply for the more office space you must have. The general requirement is to acquire 100 square feet of area per visa. In some cases, this can be negotiated with DED. For instance, a domestic cleaning company which has over 500 employees working remotely doesn’t need to acquire 50,000 sq. ft. of office space.
Freedom to set up office anywhere
In Dubai, LLC setups require acquiring office space, but the good thing is that you can acquire that space for office or warehouse anywhere throughout the UAE. So, you can set up your office in any location which you think is the most beneficial for your business.
Exposure of larger UAE market
This is also counted as one of the big reasons why LLC is the most preferred company type in the UAE. It allows business to trade with the entire market directly, which is not possible in a free zone. What’s more attractive is that LLCs are allowed to bid for lucrative government contracts too. In the UAE, government contracts serve as big opportunities as they are in billions of dollars each year. In addition to this, unlike free zone setups, a wide range of business activities are allowed to do in mainland areas.
Looking for expert advice for LLC company formation in Dubai? Make sure you approach only competent and experienced business consultants of Dubai.