The United Arab Emirates has made a name in the Middle East when it comes to conducting business. Free Zones in the UAE has been the best place to start a business for a company with an LLC structure. With the abundance of opportunities, UAE is without a doubt attracting foreign investors from all over the world.
In this blog, we will focus on the Free Zone Limited Liability Companies of the FZ LLC and why it is best for company set up in the UAE
What is LLC and why establish it in a free zone?
A Free Zone Establishment or a Free Zone Company is a Limited Liability Company formed and governed by the rules and regulations of the particular free zone in which they are established.
There are two types:
- Free Zone Establishment Limited Liability Company (FZE LLC)
- Free Zone Company Limited Liability Company (FZCO LLC)
The former features single ownership while the latter means that it can have more shareholders.
What are the Benefits of Establishing an LCC Business Structure in a free zone?
- Protection from Liabilities. This is one of the main benefits of having an LLC structure. This type of business allows shareholders to be protected from debts and liabilities that may occur with the operations.
- Protection from Losses. Another benefit is that if worse comes to worst, you only suffer losses up to the amount of your investment in the company, not more than that.
- 100 Foreign Ownership. Foreign entrepreneurs can fully own their companies with no local partner. You will need local sponsors and need to pay them an annual fee. Mainland LLC company formation requires 51% ownership to be given to local sponsors. Expats can only own 49% of the businesses.
- Full repatriation of capital and profits. FZ companies can repatriate all profits to their country giving them 100% rights to their capital without any other requirement.
- Tax Exemptions. No Personal Tax, No Corporate Tax. And no income tax.
- Exemption from Duties: Both import and export duties.
- Cost-Effective Workforce. You can recruit employees of your choice.
- Wide Range of Business Opportunities. You can choose from different business activities that make it easier for you to connect to other individuals.
- Better Facility Options. You can choose from different facility options for your business.
- 3-year UAE Visa. You can get yourself and your family a 3-year UAE residence visa.
Limited Liability Company Licensing
Considering an LLC structure in the free zones enables you to opt for three types of licenses:
- Professional License
- Commercial License
- Industrial License
LLC is the best choice for professional licenses because it enables you to conduct business in local markets without concerns of getting indebted in the future. You can choose from 45 free zones in Dubai and the other emirates to set up your LLC business. Of course, consider the nature of your company when choosing a specific free zone where you think you will most succeed.
If you are considering establishing a business in Dubai and the emirates, you must consider the Free Zone LLC structure for maximum benefits. Getting your company set up by yourself can be quite a daunting and time-consuming task so you can ask the help of professional business advisers in the Free Zone.