Question

If you are a UAE National want to establish a company with friends in UAE, which type of company you will choose? and why? Write the full answer and considering the following:

1- your nationalities.

2- the capital (share).

3- the activity.

4- the liability.

5- how many?

Please do it as soon as possible

Answer 1

If I am a UAE National setting up a company with some friends in UAE, I will prefer to establish a “Limited Liability Company”.

This form of company is generally found in UAE, because of flexibility it offers.

.1 Nationalities: Minimum 51% of the capital must be owned by UAE national.Foreign shareholding is allowed to a maximum limit of 49%

         .2   Capital: The minimum capital required is AED 300,000 (approximately $   81,000 ).The requirement of capital depends on the activities and jurisdictions of the company.

         .3 Activity: The company cannot take up activities related to banking, insurance or investment on behalf of other parties. Subject to above restriction, the company can take up any legal activity .

       .4 Liability: The liability of shareholders are limited to the value of their shareholdings

       .5 Number of persons: Minimum number of persons to set up “Limited Liability Company” is TWO. It cannot have more than 50 shareholders