Legal Structures of Business

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LLC is the most common incorporation for operating commercial activities such as trading and Services. (Insurance and banking activities mandatorily need to be carried out under a Public Joint Stock company formation).

An LLC can have between two and 50 shareholders and a UAE national sponsor should own at least 51 percent shares in the company at all times. In an LLC, the liability of the shareholders is restricted to the share capital of the company to be paid in full upon incorporation. The minimum capital required for incorporating an LLC is AED 150,000 in each of the Emirates except Dubai, where the minimum is set at AED 300,000. An LLC can have up to five Managing Directors appointed and selected from the shareholders or from other sources that can either be appointed in the Memorandum of Association or in a separate contract.

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