A Limited Liability Company or LLC is very similar to a Private Shareholding Company except that there is a maximum limit to the number of shareholders, which is 50. This limits the liabilities in the case of loss or bankruptcy, hence the name.

The founder-shareholders are not obliged to offer the shares to the public and can subscribe to the paid-up capital in full. Management of the entity can be in the hands of UAE nationals, or foreign nationals or even a third party.

Some restrictions or criteria for establishing a Private Shareholding company:

  1. A minimum of 2 and a maximum of 50 shareholders can start a LLC
  2. Minimum equity participation by UAE nationals must be 51%
  3. Minimum capital requirement is AED 300,000 in Dubai and AED 150,000 in the other Emirates
  4. Shares must be of equal value, with a minimum face value of AED 1000
  5. LLCs cannot conduct any business in the areas of Banking, Insurance, Investment or other Financial Services
  6. If a corporate company desires to be a shareholder in a LLC, the capital of the LLC must be double that of the corporate

General note: There may be slight variations in the Terms & Conditions for setting up the company in Dubai, as against rest of UAE. Please consult CSU for more details.


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