Free Zone LLC In Dubai
The United Arab Emirates has earned a name for itself in the Middle East as one of the countries with the most free zones for conducting business. UAE has undoubtedly drawn investors and entrepreneurs from all over the world due to its multitude of chances and perks.The different company forms and perks that come with them, notably Free Zone Limited Liability Companies, are one of the most appealing aspects of forming a company in the UAE (FZ LLC). Below, lets look at what a free zone LLC in Dubai is, its benefits and also about the distinctions between mainland and free zones to help you set up your business in Dubai and other emirates using the FZ LLC form.
A limited liability business that is founded and governed by the rules and regulations of the free zone in which it is constituted is known as a free zone establishment (FZE) or a free zone company (FZC).
For free zone firms, there are two company structures: a free zone establishment limited liability company (FZE LLC) and a free zone company limited liability company (FZE LLC) (FZCO LLC). FZ LLC differs from FZCO LLC in that it only has one shareholder, whereas FZCO LLC can have several shareholders.
Benefits Of Having A Free Zone LLC In Dubai
One of the key advantages of having a free zone LLC company structure in Dubai is that it protects the firm’s shareholders from any obligations, debt, and other issues that may arise as a result of the company’s operations.
A free zone structure LLC status in Dubai and other emirates also means that you can only lose up to the amount you deposited in your firm, not more. There are a number of other advantages of having a free zone LLC in Dubai, which include:
- 100% foreign ownership: Foreign entrepreneurs with no local partners can benefit from having total control of their company. You will, however, require a local sponsor to whom you will be expected to pay an annual fee that will be mutually agreed upon.
- Capital and profit repatriation: Free zone enterprises can return all of their profits to their home nation. Allowing them to transfer 100 percent of their assets to their home country without any restrictions.
- There are no taxes on individuals, corporations, or income.
- Import and export duties are exempted.
- Recruiting convenience and a cost-effective staff
- A wide range of business operations can be carried out in free zones. Individuals can easily connect and network as a result of this.
- A wide range of facilities are available: You have a variety of facilities from which to choose for your business setup. This encompasses anything from flexi-desk facilities to traditional offices to storage facilities.
- UAE Residence Visa for 3 years.
LLC Company Formation On Mainland Vs Free Zone LLC In Dubai
The majority of LLCs are created on the mainland. In mainland enterprises with LLC structures, a local sponsor would hold 51 percent of the company, while the foreign expat would control 49 percent.
This is not the case, however, with the free zones LLC company structure, which allows expats to hold 100% of the company without the necessity for a local sponsor. If you prefer to have more partners in a free zone LLC structure, you have the option of dividing your shares anyway you like and do not need any additional people in your organization.
The only difference between mainland LLC firms and free zone LLC companies is that you will still have the same level of security that an LLC structure provides. However, LLC structures are not present in all free zones.