Types of Companies in UAE

UAE welcomes companies and businesses from all over the world to set up a station in UAE. Here are some of the prominent forms of companies that can be established here.

Joint Partnership

A Joint Partnership is considered to be one of the best and easiest forms of companies to establish in UAE. In this, a minimum of 51% of the business must be owned by a UAE national (or as known as the Local Sponsor). While there is no minimum capital requirement for the establishment of a Joint Partnership company, it offers unrivaled access to the wider UAE economy and the foreign equity partnership does not exceed 49%. Also, in such company type, the profits and losses can be shared at a ratio different from the shared capital.

Limited Liability Company (LLC)

An LLC can be established by a minimum of two and a maximum of fifty shareholders whose liability is limited to the value of their share in the company’s capital. The minimum capital required to set up LLC is 300,000 dirhams in UAE. The company must have  51%  participation from a  UAE  national  (the Local Sponsor) while the rest 49%  can remain with the investor. Moreover, either the UAE national or the foreign partner must operate as an active member in managing the operations of the organization. Furthermore, as per the Companies Law, LLC may engage in any kind of business except insurance, banking, and investment of money for others