A limited liability form of company is a corporate entity whose liability under the law is limited to the

total share capital paid during incorporation. The LLC is independent of its shareholders and is regulated by its incorporation documents. A LLC as per law is entitled to do business within the local city limits of Dubai and is subject to laws of UAE. The Dubai Economic Department or DED is authorized to issue trade-license for limited liability form of companies in Dubai, UAE. The Companies Law of UAE of 1984, as amended (the Law) requires that an limited liability company to be held by minimum of two individuals or entities, one of which must be a UAE citizen (either a Emirates based individual or a entity wholly owned by UAE nationals) holding fifty one % of the issued share capital and the expatriate investor/entity would hold the remaining 49%. Profits can however be agreed at a ratio different then the share capital. There is no mimum capital requirement. Importantly and regardless of the majority local ownership provision, there are means to reduce the managerial role of the UAE partner and the percentage of profits allocated to this UAE shareholder in cases where he does not want to manage and control the company's business. The company's memorandum and articles can include a clause suggesting that all management power will be vested with foreign shareholders. The parties can also enter in to other agreements such as shareholders contract that will provide for rights and interests and some other agreed terms. Formalities involved in registering: (a) Advance preliminary consent must be obtained from Dubai Economic Department to confirm whether proposed company name is allowed for registration, and a consent of the the main objects for which the company is being formed;

(b) The shareholders must thereafter sign the usual of the Memorandum and Articles which is the principal document of the company and lists out terms relating to incorporation and operation of the company, life for which LLC is being setup, Agreed Management and powers of directors, voting and related rights, profit-loss distribution, winding up provisions and so on; (c) The parties must then obtain business office space and obtain a tenancy contract; and (d) Finally, the shareholders must obtain translated copy of the Memorandum of Association which is the charter document of the LLC Company and sign the same before Court notary and finally obtain the trade license from Dubai Economic Department and subsequently apply for residency visas. Note: We trust and hope the above article will aid you in your incorporation. If your company requires services from Dubai Law Firms or need to Set up in Dubai free zone or incorporate a free zone company in Dubai or need opinion on Dubai real estate law, please do to get in touch with our Dubai lawyers and request for a personal and free legal consultation. Our attorneys advise on company incorporation in Dubai, Dubai corporate laws, litigation in UAE, Dubai property laws and other areas. Thank you.