> Structure your business in frames of a limited liability - be wise!
Structure your business in frames of a limited liability - be wise!
A limited liability is a type of liability that does not exceed the amount invested in a partnership or limited liability company. While a shareholder can participate wholly in the growth of a company, his or her liability is restricted to the amount of the investment in the company, even if it subsequently goes bankrupt and racks up millions or billions in liabilities.
The following options can be used in order to set up abusiness with alimited liability in the UAE:
- Incorporation of a Free Zone Company:allows 100% foreign company ownership; 100% repatriation of capital and profits; 100% corporate, personal income tax exemptions; exemption from all import and export duties; inexpensive workforce and easy recruitment procedures: office + residency visas; however it isrestricted to trade directly with UAE market.
- Incorporation of an offshore company:100% tax exemption; 100% foreign ownership; protection against lawsuit judgments; Extreme discretion and confidentiality of the International Company Registry; ability to maintain corporate bank accounts (multiple current accounts) in the UAE; Ability to own e.g. real estate property in the UAE, patents, trademarks; ability to tailor the company; no annual audit report needs to be submitted to the authorities; no tax haven stigma as the UAE is on the white list of OECD; however neither office nor resident visas will be available.
- Incorporation of a mainland LLC: formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the Company’s capital; 51% participation by UAE nationals is the general requirement for the LLC; No minimum capital requirement for establishing a company; Responsibility for the management of LLC can be vested in the foreign or national partners or a third party.
Thus, while LLC owners enjoy limited personal liability for many of their business transactions, this protectionisnotabsolute. Ask us how to protect your personal assets.