Get a LLC for Your Business

How Do You Get a LLC for Your Business?

Forming an LLC is often not as difficult as perceived by most entrepreneurs and investors.

1. Deciding a Name for LLC
First off, you must a choose a suitable brand name for your LLC. All the LLC rules of the zone must be carefully complied when choosing the name of your company.
·         Although the requirements differ from state to the other state, generally:
·         The name must be unique and dissimilar from an existing LLC.
·         The name has to end with “Limited Liability Company or any of its abbreviations such as LLC, LC, Ltd or Liability Co.
·         Certain names prohibited by the state must not be used in the LLC’s name such as Bank, Corporation, Insurance, City or State.
·         The name does not violate the Trademark Law laws by violating the intellectual property of some other existing LLC

2. Creating Articles of Organization
Once the name has been secured, the next move is to file “articles for organization” through the LLC filing office. The term article of organization is often regarded as “certificate of formation”. This is where the legal process of the organization starts to kick in.
A slight disadvantage during this process is that the owner pays a fee when submitting your company’s article of formation. These fees are moderated by the countries laws, however, the zones can charge according to their own specific preferences. The LLC company setup fees will be renewed each year. In the articles, the owners and co owner names, LLC name and addresses.

3. Forming an LLC Operating Agreement
An LLC operating agreement has to be drafted through the LLC filing office, where the owner must set out
Percentage interest of the members
The rights and responsibilities of members
Visiting power of vendors
How the LLC setup will be managed?

4. Start Publishing a Notice
Now that your company is official, a letter must be published to a local newspaper confirming the LLC formation. This will be repeated for a couple of weeks until you are eligible to submit an affidavit of publication to the LLC filing office.

5. Start Business
Now your LLC is open to business and can run its operations freely according to the state’s laws.
“We must all obey the great law of change. It is the most powerful law of nature.” — Edmund Burke

Small and Medium Enterprises in Dubai

Small to Medium Enterprises or SMEs are business entities defined by their size and capacity. The elements that define these metrics can be categorized based on the number of employees, assets, gross revenues or mixture of one or more. These factors are further associated with the type of industry the company operates in. We will discuss how business setup in Dubai is facilitated with the help of UAE’s laws.

Why SMEs are Important to Economies

All and all, SMEs contribute a major percentage, making up majority of businesses in most economies. As an international hub bustling with business activity, Dubai is a renowned destination for entrepreneurs and investors from all around the globe. Sound policies, incorporation benefits and tax free zones are among the major attractions for SMEs in this part of the world. 

SMEs in UAE

Generally, SMEs are more versatile, easily incorporated and company setup cost is lower than larger ventures. Since these companies dominate Dubai’s business sector, the government of UAE takes special care of these legal entities with lucrative laws and specific incentives to encourage more investment in the region. 

For decades, SMEs in Dubai have served as anchors, driving job creation, innovation, business models and prototypes. They account for an overwhelming 95% of enterprise population in Dubai and take on 43% of the total workforce. To ensure these companies remain intact and prosperous, the UAE government has taken certain measures to help growth and expansion of this sector in the most effective means possible. With the World Expo 2020 closing in, SMEs are expected to surge further more in Dubai.

Source:https://ibgme.jimdo.com/

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.