Legal Requirements for LLC Company Formation in UAE
                     Legal Requirements for LLC 
Company Formation in UAE
INTRODUCTION
Setting up a Limited Liability Company (LLC) in the United Arab Emirates 
(UAE) can be a lucrative endeavour, but it's important to understand the 
legal requirements that come with it. The UAE offers a business-friendly 
environment for both local and foreign investors, making the process 
smoother, but adherence to legal protocols is essential. Get ready to 
unlock opportunities in this business-friendly environment while ensuring 
compliance and success. MPMS is a popular  business consultancy that 
offers top-notch service for LLC Company Formation in UAE.
Here's a Breakdown of the Key Legal 
Requirements for LLC Company Formation in 
UAE:
01 Shareholding Structure
02 Local Partner or Sponsor
03 Minimum Capital Requirement
04 Business Activity and License
Shareholding Structure
To form an LLC in the UAE, a minimum of two and a maximum of fifty 
shareholders is required. While there can be foreign shareholders, the majority 
of shares (at least 51%) must be owned by UAE nationals or a UAE company 
wholly owned by nationals.
Local Partner or Sponsor
In most emirates, foreign investors are required to have a local partner or 
sponsor who owns at least 51% of the company's shares. This local partner is a 
UAE national or a UAE-owned company. However, certain free zones allow 100% 
foreign ownership without the need for a local sponsor.
Minimum Capital Requirement
While the UAE abolished the mandatory minimum capital requirement in 2017, 
specific emirates may still impose such requirements based on the type of 
business activity. The capital can be paid in full at the time of registration.
Business Activity and License
Defining your business activity is crucial. The UAE has over 2,000 business 
activities grouped into various categories. You'll need to obtain the appropriate 
license for your chosen activity, which can range from professional services to 
industrial activities.
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