Limited liability may be a type of legal protection for shareholders and owners that stops individuals from being held personally accountable for their company’s debts or financial losses.
What is a Limited Liability Company?
LLC stands for Limited Liability Company. Limited Liability Company (LLC) combines components of a partnership, individual proprietorship and an organization to make sure that the corporate owners don’t seem to be personally responsible for their company’s debts or liabilities.
Reasons to set up Limited Liability Company
- Limited Liability Company is suitable for small businesses. It does not matter if you have a large number of investors or a small number, you can decide the agreement on your own.
- When you first start business, you won’t get a profit right away. It is possible that in the first few years there would only be losses in your business. By using Limited Liability Company, the failure of business flow through to the members in order that they will use them as removal for other income.
- If you are saving your money for retirement or your children’s education and if you lose that in lawsuit. It could be very devastating. It is better to hand all your personal assets to Limited Liability Company.
- You can get a raise in capital from the investors. Bring people who are willing to contribute property, funds or services to your business.
Advantages of Limited Liability Company
LLC company formation in Dubai has the following advantages.
- It is duty free
- Funds can be transferred for free
- The operational cost is low
- The freight charges are low
- Benefits of tax
- You can get a 100% overseas ownership
- The energy is sufficient and cheap
- Exception from all the export and import duties
- The offices of estate are available on lease and sale
- The office and factories are readymade
Steps for business set up in Abu Dhabi
- Step 1: The first step is to work out the legal forms and enterprise of the business
- Step 2: Book a trade name and get the starting approval
- Step 3: Set out an office lease
- Step 4: Petition for the license of trade and approvals
- Step 5: Get the trade license by DED
- Step 6: The company should then be registered with Labor and Immigration
- Step 7: Business bank account should be opened
- Step 8: Appeal for employee visa
By following the above mentioned steps, you can easily set up a business in Abu Dhabi.