5 Reasons an LLC Is Right for You

While there are numerous professions to go for, setting up an independent business is every entrepreneur’s dream. Every business setup in UAE requires a particular type of legal scaffolding to help it prosper without facing any intermediate hurdles. Using the right business structure to erect a company is imperative to its ultimate success in the market. One of these corporate structures is Limited Liability Company or more commonly abbreviated as LLC. In this article we will share 5 reasons why you should go for an LLCformation for your business. 

Avoid Double Taxation

First off, LLC gives you shelter against taxation. Many entrepreneurs and SMEs opt for LLC because it avoids double taxation. Under most cases of C-Corp business structure, the company and its owner are separately taxed each year. This is prevented in LLC formation since these setups are taxed more like a sole proprietorship.

 

Choose Your LLC Location

Most owners often face complications when finding a good location for their work space. A LLC formation helps the owner secure a work place in their near proximity instead of looking for a far distant place to run their operation from. You not only save on heavy taxation, but also avail a huge variety of serviced offices in the commercial district that can be used from day 1.

Easy to Incorporate Changes

Another great advantage of an LLC is its flexible system that facilities owners to easily add partners, sell interest, or make administrative changes. Unlike C-Corp, LLCs enjoy fewer restrictions on many levels that helps it to incorporate almost immediate changes in company policies. 

Easy Registration

Since LLC is a fast and simple company structure, almost every business can get register in various zones around UAE. For instance, a company needs to register for a particular business in UAE then it will contact a professional company setup agency and within a weeks’ time the license will be mailed at the owner’s doorstep. 

Asset Protection

Above all, a LL Company setup gives protection to the owner’s assets since very little can be done if anyone tries hostile acquisitions or mergers. After a satisfying period of growth, you can easily convert it into an S-Corp or C-Corp by yourself.

UAE Offshore Company Formation Benefits

Offshore companies are one among many registration methods used today to open a business presence in a foreign country. Recently, Offshore company formation in UAE has gained popularity due to fiscally sound policies, operational privacy, and powerful asset protection from the Govt. As a legal entity, offshore companies help investors and businessmen relocate their operations and internationalize their existing business. Over the last decade, UAE has established itself as a key player in the global company set-up industry and become an international business outpost for the region. 

Unlike many Gulf states, UAE runs an oil-independent economy powered by business and e-commerce sector. This has made its zones into fertile grounds for offshore establishment from all across the world. For investors, offshore companies are convenient tools to structure their business interests overseas and enjoy all the benefits from an asset-protection and tax-free standpoint. 

Protected by Govt.

Asset protection is essentially guaranteed by the government of the state/country. Anything that could damage, dispute or invade the assets of its protected is severely undermined by UAE Govt. This renders any biased foreign judgment useless, and the legal opponent is unable to pursue after the assets/property. 

Tax Exemption

Like most company formation structures in UAE, Offshore companies also enjoy a tax-free environment to operate. These entities do not require Business Trade License since their constitutional documents already serve as a legitimate proof of their presence. 

Privacy

Financial records are provided full privacy internationally without any fear of scrutiny or legal action by the host country. Audits are kept a secret on the company’s discretion to shield it from creditors. These privacy protection laws are reinforced by Govt. bonds, heavy fines, and even arrest.

Setting Up a Business in Dubai

UAE is a world-renowned business destination, merged with culture, society and breathtaking infrastructure. It has become one of the top locations to invest and start a company. Through liberal govt. policies and exceptional facilities, UAE have attracted foreign businesses from all around the world to benefit from its various tax-free environment to build profits. However, to establish a fully functional set-up, there are certain steps to follow first. Many entrepreneurs and SMEs often seek professional help by hiring expert company formation agencies to do their bidding, which cuts overheads and other tons of trouble when registering the company. We can divide these into 4 simple steps.

Investor Visa

To secure a business license, you must first find a local Emirati (for mainland companies) who will be entitled to 51% shares. For Freezones you don’t require an approval and can simply apply for residence visa as an investor. This is the first step towards your life as an expatriate in UAE.

Type of Business

Now you must determine which type of business you are into. This will help in finding the right jurisdiction where you can avail exclusive benefits for your business genre, and maintain your operation easily around the zone.

Business Vehicle

Choosing the correct business vehicle gives you an ideal environment to flourish. For instance, if you are into consultancy services then mainland company setup will be a preferable option, but if you are an import and export corporation, then Freezones company setup will be imperative. 

Finding a Work Space

A good workspace and the right location can mean a great difference in operational agility, employee recruitment, accessibility, and cost. An office space that offers flexible leasing options and is located near commercial districts of the zone will succeed in the long haul.