The Limited Liability Company (LLC) is a common and recognized type of commercial company in the United Arab Emirates. This company is characterized by its shareholders’ limited personal liability for the company’s debts and commercial obligations, as they are liable only up to a certain limit equivalent to their shares in the registered capital.
This type of company treats the company as a separate legal entity from its shareholders, ensuring that the shareholders are not personally liable for the company’s debts. They are only responsible for their shares in the registered capital.
Profits and losses are distributed among the shareholders according to their shares in the capital, ensuring a fair and transparent distribution process.
The Limited Liability Company (LLC) is attractive to investors as it mitigates investment risks, thus encouraging the inflow of investment capital.
The LLC enjoys full independence from its shareholders, and the withdrawal or death of a shareholder does not affect the company’s continuity.
The company can appoint professional managers and executives without affecting the distribution of responsibilities and personal shares among the shareholders.
At Abeer Al-Dahmani Advocates & Legal Consultancy, we understand the significance of the Limited Liability Company (LLC) as a powerful tool for business ventures in the UAE. With our qualified team of lawyers and advisors, we provide the necessary legal support for establishing and managing this type of company.
We assist our clients in comprehending the requirements and advantages of the LLC model and offer legal counsel to ensure their compliance with the applicable laws and regulations concerning their business activities.
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A Limited Liability Company (LLC) is a type of business entity where shareholders are responsible for the company’s debts only up to a certain limit, and they are not personally liable for debts beyond their contributed capital to the company.
In many countries, an LLC can be formed with just one shareholder, but this requirement may vary from one jurisdiction to another, and there might be a specific minimum number of shareholders according to local laws.
An LLC can enjoy certain tax advantages, as its profits may be subject to lower tax rates compared to individuals operating their businesses as sole proprietors.
In general, designated shareholders cannot exceed the limits of limited liability set by the company. If the company fulfills its debts and obligations, the shareholders will not be personally liable for more than the amount they have contributed as capital.
The necessary steps to establish an LLC vary depending on the country and local regulations. In general, this involves determining the type of company, its name, and address, preparing the required legal documents, and submitting them to the relevant government authorities for registration.