What Is The Difference Between LLC And Non-LLC In UAE?

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In the context of the United Arab Emirates (UAE), an LLC refers to a Limited Liability Company, while non-LLC generally refers to any other type of business structure that is not an LLC such as a sole proprietorship or partnership. Here are some key differences between the two:   LLC Non-LLC Liability The liability of the company's shareholders (also known as members) is limited to their respective capital contributions.  This means that the personal assets of the members are generally protected from business liabilities. The owners have unlimited liability, meaning their personal assets may be at risk to satisfy business debts and obligations. Ownership and Management LLCs are typically owned by two or more individuals or entities, who are known as members. These members may be involved in the management of the company or may appoint managers to run the day-to-day operations. The ownership and management structures can vary depending on the type of business entity chosen. For example, a sole proprietorship is owned and managed by a single individual, while a partnership may have multiple partners with shared ownership and management responsibilities. Legal Formalities LLCs in the UAE are subject to certain legal requirements and formalities. These include drafting a Memorandum of Association (MOA) and Articles of Association (AOA), obtaining necessary licenses and permits, and complying with reporting and accounting obligations. Non-LLC structures, especially those involving sole proprietorships or simple partnerships, may have fewer legal formalities and requirements. Foreign Ownership The UAE has different regulations regarding foreign ownership in different sectors and the Emirates. Generally, LLCs require local sponsorship or a UAE national as a partner, holding at least 51% of the shares, while the foreign partner(s) can hold the remaining 49%.  Non-LLC structures may provide more flexibility in terms of foreign ownership, depending on the business activity and location.  It's important to note that the specific regulations and requirements can vary depending on the Emirate in the UAE and the nature of the business. It is advisable to consult with legal and business professionals or relevant government authorities for accurate and up-to-date information specific to your situation. Contact us at Offshore Company Corp for support when establishing a company in the UAE.

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