The Single Ownership Limited Liability Company in the Dubai Mainland is one of the most preferred company types among entrepreneurs. The 100% ownership in Dubai Mainland enables the entrepreneurs to go for a single ownership Limited Liability Company.
One of the major differences between sole proprietorship and single owner LLC is, that the business owner will have limited liability in the company they are owning. Also, they can enjoy the tax advantages applicable.
What is a single owner LLC Company in Dubai, UAE?
A single-owner LLC Company in Dubai is a legal company type where there is only one owner for the company. However, there is a provision to add managers to the company as part of the operation expansion.
Except for consulting services business activities, all other business categories including tourism, commercial, and industrial operations can opt for a single-owner LLC Company in Dubai.
The One Person LLC Company License will be issued by the Dubai Economy after reviewing the documents the owner provides the authorities. The company will have all provisions similar to other LLC Companies on the mainland.
The owner can add new employees, and directors when required. The owner can safeguard their assets from any lawsuits. Transfer of ownership to other members is also possible.
Ownership of Single Owner Company in Dubai, UAE
As per the amended Commercial Companies Law of 2015, there is 100% foreign ownership in mainland companies. Single-owner LLC Company can be set up by any foreign nationality in the Dubai Mainland.
The owner has the provision to appoint managers and directors for the company. The owner can pass on the authority to the director to initiate commercial transactions. Employee stock options are not possible for a one-person company.
In case of a manager change, the company must prepare an undertaking letter and submit it to the Dubai Economy. There is a 30-day notice period and the company must appoint a new manager within that period.
Document required for opening a one-person company in Dubai
There are a few documents required by the Dubai Economy to process the Trade License for the single-owner LLC Company. The process is straight forward and the owner must submit the following documents.
- Attested copy of owner’s passport
- A residential proof – Ejari, Title Deed, Tenancy Contract, etc.
- A CV of the owner
- Name of the Company
- Filled-in application form
- Draft of the Memorandum of Association (from DED for the owner’s signature)
Najmat Alsafa will facilitate the document submission and Trade license issuance for your single-owner LLC Company. The team will ensure you get the trade license at the fastest possible time.
The Dubai Economy will review the documents and issue the Trade License for the Single Person Company. They can start the business operations as they receive the trade license for the new company.
Cost of setting up a Single Owner Company in Dubai
The cost of opening a single-owner company in Dubai starts at around AED 10,000. Depending on the specific business activity, the license fee varies.
Also, for certain business activities such as specialized trading, trading in heavy machinery, etc., there is a mandatory requirement to have an office space. It will affect the overall cost of setting up a single-owner company in Dubai.
So, in total, the cost of setting up a single-owner company in Dubai will vary according to the specific business requirements such as office location, area, facilities, visa quota, and more.
Our expert Business Consultants will provide you with the right package for setting up a single-owner LLC company in Dubai with affordable office rent and other support facilities.
Advantages of setting up a Single-Person Limited Liability Company in Dubai.
There are multiple business advantages to setting up a Single Person LLC Company in Dubai. The major highlight is the ability to hedge the company’s losses. The owner’s assets are kept aside and secure.
Secondly, the one-person company functions similarly to other mainland business types. They have all the freedom to hire employees, appoint directors, apply for residence visas, tax exemptions (if applicable), and more.
The Single Person LLC Company when compared with a professional services license or a sole entrepreneurship; has distinct benefits for the business owner. They have the flexibility of 100% company ownership, profit repatriation, limited liability for the owner, etc.
How to register a Single Person Limited Liability company in Dubai, UAE?
To register a Single Person Limited Liability Company in Dubai, the owner can seek assistance from NAJMAT ALSAFA. Our team will facilitate the complete process of registering a Single Person Limited Liability Company in Dubai with the Dubai Economy.
All the paperwork and documentation will be initiated by our team and ensure you receive the Trade license for your Single Person Limited Liability Company in Dubai at the earliest and the lowest possible cost.
There are no restrictions in trading or conducting commercial transactions in Dubai via a Single Owner LLC Company. However, the general rules and regulations of the Mainland Companies in Dubai will apply to these Single Person Limited Liability Companies as well.
So, the tax collected by the UAE government such as the Value-Added Tax (VAT) and the Corporate Tax (CT) depending on their revenue thresholds will apply to these company types also.
Hence, in conclusion, a single-person LLC Company in Dubai is an ideal choice for business owners who are looking to steer their business journey single-handedly as an entrepreneur and appoint managers and directors to take care of the business operations.
To know more about Single Person Limited Liability Company in Dubai, connect with our expert team right away!
The cost of setting up a single-owner company in Dubai will vary depending on office location, area, facilities, visa quota and more.