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Comparison of LLC and Sole establishment in Dubai, UAE
The United Arab Emirates is considered one of the leading countries in the world in providing unique opportunities for foreign entrepreneurs and investors, allowing them to create a successful and profitable business. Two organizational and legal forms are the most popular for company registration. Let's analyze them in detail.
Limited Liability Company (LLC, Limited Liability Company) may include from 1 to 50 founders, with the shares of liability of each in proportion to their contribution. It is a full-fledged legal entity, which is often compared to the Russian "LLC". More than 3000 types of economic activities are available.
LLC Benefits:
- 100% ownership of the company for foreign nationals.
- May purchase real estate on behalf of the company.
- Opportunity to engage in any type of business, including trading and manufacturing.
- The liability of the founders is limited to the authorized capital.
- It's easy to attract investment for a share of the company.
Disadvantages of LLC:
- Higher cost of enrollment compared to Sole Establishment.
Sole establishment is a form of business activity in which the company is entirely sole proprietorship. A business license is issued to a specific individual who is fully liable with his or her personal assets. Opportunities include obtaining over 800 different professional licenses to provide services. These can be consulting, marketing, counseling, tutoring, training, IT, repairs and similar services. This type of organization does not allow for trading and import/export operations.
Benefits of Sole establishment::
- 100% ownership for foreign citizens.
- Low registration costs.
- Ability to combine several professional activities.
- There are no restrictions on the location of offices.
Sole Establishment Disadvantages:
- Full liability of the owner for the obligations.
- Inability to engage in trading goods.
- Difficulties in attracting investment.
To successfully start a company, it is recommended to use the services of a lawyer. Openbiz specialists will select the type of company that will best suit your business.
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