If you intend to set up your business in Dubai, it is the wisest decision taken by you. The UAE, specifically Dubai, has a host of benefits to offer to the enterprising individual who wants to set up a company there. Being a preferred white listed jurisdiction, UAE has a varied choice of the type of business legal entity that can be registered. The banks in the UAE belong to the government, thus can be expected to be stable. UAE is not a pseudo but a real economy with a contribution to its GBP through tourism and foreign investments besides oil trading. Presence of business centres, developed transit systems; served with two large airports and a business environment with transparency provide more conducive conditions for growth.
Before venturing out establishing a Proprietorship company, you must first understand the pros and cons as well as what is the other better option in terms of the advantages the type of company holds, both in the present as well as the future?
Typical Pros and Cons of a One Person Company
The One Person Company has some specific advantages over the Sole Proprietorship Company. It is a legally recognized business entity in the UAE since 2003. It empowers an individual, the promoter of the business, with full control on the affairs of the company and at the same time, it limits the owner’s liability of contributions to the business. The individual will be the only director as well as the shareholder (with a provision for a nominee director without powers except when the owner as the director is incapable of entering into a business contract). There is no scope of getting equity funding or issuing employee stock options in an OPC.
One Person Limited Liability Company-Procedure for Registration in the UAE
Who can be the Owner?
- A corporate body or GCC/ or a local person can set up and be the owner of a One Person Company (LLC).
- A person having local citizenship (as per the procedures, UAE national, or GCC national, or a decree-holder).
- A body incorporated (UAE or GCC establishment having 100 % ownership by UAE or GCC nationals).
- The license owner will be the shareholder.
The One Person Company can appoint Manager(s) as under:
- A minimum of one and up to 11 managers can be appointed.
- The manager can be of any nationality.
- The license owner can also be the manager.
- The concerned authority should be informed within 30 days from the date of the managers’ service coming to an end and a new manager needs to be appointed by the company during this period.
The Trade Name of the Company:
The trade name can be either:
- Name of the shareholder plusthe business activity including the legal name followed by the abbreviation‘LLC’, e.g. Name of the shareholder, general trading One Person Co L.L.C
- The trade name plusname of the shareholder plusthe activity plus the legal name followed by the abbreviation ‘LLC’, e.g. One-up Traders owned by Name of the shareholder, general trading One Person Co L.L.C
- The trade name should be matching to the shareholder’s name followed by the words One Person and ending with L.L.C.
- The trade name should be in its legal form.
- Shareholder’s name can consist of two names at least in the trade name, e.g., the 1st name + the 2nd name or the nickname (consists of more than one name).
- The phrase owned by should be mentioned if the trade name doesn’t start with the name of the shareholder.
- The copy of the owner’s/shareholder’s passport – Attested
- Residential proof
- Original documents from the bank
- Personal and authentic details of the owner/shareholder
- Name of the company that you are going to start
- Memorandum of Association (MoA) issued and authenticated by the notary public.
- Details of the shareholders (if any)
To establish a business in Dubai in the UAE, GCC Filings provides services. Besides, GCC Filings can help in the areas of Accounting Services, Tax Audit, Tax Consulting, Tax Filing and Return Submission and VAT Registration in the UAE.