Setting up an LLC or sole establishment in the UAE: which is right for you?
LLC or sole establishment?
There are so many options entrepreneurs have while setting up a business in UAE. there are so many free zones, mainland and other establishments that can be taken as an option.
FREEZONE- 100 PER CENT OWNERSHIP
If you choose to work in a free zone, you will not only get 100 per cent ownership but also all of the profit and the capital will be yours. Note that there would be no restriction of currency at all.
If you do not want to set up a business in the free zone, you can either opt for the mainland as well. in the case of the mainland, you will be able to trade in the local UAE markets. There might be people who think that setting up a business in UAE mainland would be complex and difficult than free zone but this is not the truth at all. if you get guided in a right way, your business in mainland will become really easy.
WHICH BUSINESS DO YOU WANT TO RUN?
The main thing that you should consider before doing anything is the type of the business you want to start. You basically have two main options in this case. You can either form a limited liability company (LLC) or set up a sole establishment.
If someone wants to start a business on their own, they can take the option of the sole proprietorship as well. in such a case, your costs will be reduced. By taking the assistance of the agents, you can have the 100 per cent ownership of your business. people who like to work consider sole proprietorship as a good option. If you want to setup a business in Jebel Ali free zone: Click here
In case of LLCs, you will not be able to get the 100 per cent ownership as the local sponsor will hold a whole of 51 per cent share in your business. It is to be noted here that the sponsor will not have any decision-making power in your business profits are not split along these same lines.
YOU WISH- YOUR WANT
It is totally up to your wish which establishment do you want for your business. if you want shareholders, you can go for LLC and if you want the full ownership of your business, you can go for a sole proprietorship.
MULTIPLE SHARE HOLDERS- LLC
In the formation of LLCs, there should be multiple shareholders while there would be no shareholders in case of the sole establishment at all.
Sole establishment- unlimited liability for the owner- this shows that the business will be really costly as the whole of the burden will be on one person. In such a case, you can get into financial troubles as well. so, if you don’t want that to happen, you must not go for the sole establishment.
If you do not want the unlimited liability in your business or if you are worried because of the unlimited liability, you must go for Dubai mainland LLC.
Business set up in Dubai can be as easy as anything for you but only in the case if you do proper planning for each and everything. If there is no proper planning for a certain thing you want to do, there would arise so many problems for you in the long run