It is advisable that investors know what exactly would it cost them when they take the first step of owning a business. One cannot simply dive into this venture without any plans created. To be able to business setup services in UAE in the most effective way, a businessman should have a budget plan or a business plan to be financially prepared of what’s to come.
Before deciding to go forth with offshore company formation or limited liability company set up, this article will explain the difference between the two. With this in mind, you would know exactly where you would want to form your company. Since each location or authority in the UAE has different procedures in business setup and different minimum amount of capital required, interested investors are advised to seek the help of consultants who will guide them every step of the way.
Understanding Limited Liability Company
To be brief, limited liability company or LLC is a combined form of a corporation, a partnership, and a sole proprietorship. It does not hold its members responsible for the debts of the company.
An LLC only requires two shareholders to start and allows a maximum of 50. Whatever the shares of the shareholders are, they are only liable to that.
This is chosen by some businessmen because the personal liability of principals is limited only. It is also uncomplicated than a corporation when it comes to setting it up.
Understanding Offshore Company
In simple terms, when a corporation is formed outside its parent company’s jurisdictions or country, it is considered as an offshore company. However, the corporation is not physically present in that chosen country even if the company is registered in that country.
For offshore company formation in the UAE, the investors are only required to have a certificate of corporation for their offshore companies but they are not required to have a business license.
Estimated Costs for LLC and Offshore Business Setup in UAE
A brief overview of the estimated costs of forming an LLC and offshore company are all below. Keep in mind that these are only estimations and do not necessarily apply everytime.
However, the figures are stated in the figures that would cost you when you let business setup consultants to handle your affairs for you.
- LLC Company Formation
With trade name reservation, initial approval, local sponsor fee, legal translation and notarization, certificate of incorporation fees, establishment card, etc., forming an LLC company will only cost you about less than AED 44,000, which includes the professional fees of the consultants, who will take care of everything for you as you simply wait for your trade license and the go signal to begin your operation.
- Offshore Company Formation
The below estimation of the costs of business setup in Dubai (JAFZA) offshore and other offshore areas in the country is only AED 18,000, plus the professional fees for your consultants. This amount already includes the trade license option, registration, and assistance in opening a bank account.
If you want to know more about LLC, offshore, and other types of companies in other parts of the UAE, you can read more at MAF Consulting Middle East.