The pros and cons of LLC company formation in Dubai

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Are you looking to expand your business and looking for great investment opportunities in Dubai? Well, you are looking right. Now, although Dubai is a hub for emerging entrepreneurs, there are some critical decisions to be taken – the most important one being the legal structure of the organization. The options are: Sole Proprietorship, Civil Company and Limited Liability Company (LLC). For a start-up, LLC is one of the best routes to ensure you are subsequently shielded from the (any) pitfalls of your business.

Read on to know the pros and cons of LLC company formation in Dubai:

Pros of LLC Company

Affordable: It is quite affordable to set up an LLC company, and one of the most followed formats by expats in Dubai. The minimum capital requirement also depends on the nature, size, and type of the business – making it beneficial for most business owners.

Easy and Quick to set up: There is paperwork involved, but with the right company formation partners – the process can be very swift. There are not too many compliances involved, making it feasible.

Taxation: With an LLC company, you avoid the charge of double taxation, and the tax structure aids in avoiding personal stress, incase of any business turmoil.

Investor Visa: Being an investor for LLC companies in Dubai – the investor can enjoy certain leverages in the Emirate.

Cons of LLC Company


Trade Limitations: Depending on the free zone you are setting up your business in, you will be faced with certain trade limitations. However, depending on the type of your business, there shouldn’t be any issue in conducting your business activities within the set geographical area.

Local partner: For a Limited Liability Company – it is important to have a local partner, who will be a 51% owner of the company. This is one of the biggest limitations as owners feel the loss of autonomy over their business. However, there is always the option to set up a business in a free zone if you want to retain 100% ownership of the business.

For offshore companies in UAE – looking to actively invest in Dubai – reach out to TRC Pamco, one of the leading audit firms in Dubai, they can help with company formation in Dubai.