Being your own boss’, is undoubtedly an exciting thought. So if you have decided to set up your own business in UAE, then you should be ready with a business plan and a business structure. But, that’s not enough. You also need to decide the kind of business to start, where to start, how to register and other related things. Or a better option is to take the help of business advisors who can guide you completely on proprietorship, corporation, or LLC company formation in Dubai.
The easiest efficient and fastest way to start a business in Dubai is by forming a LLC. You can call it a hybrid business that has features of both, a corporation and a partnership. It benefits from the pass through taxation feature of a partnership and allows flexibility in operation and management, yet having limited liability like in a corporation. Here we shall discuss the many advantages of LLC company formation in Dubai.
- Protected assets: if you own a LLC, then you will be given limited liability protection due to which you as an owner would not be personally responsible for your company’s debts and liabilities. Your creditors cannot pursue your personal assets including your house, savings accounts, and others to pay your business debts. Whereas in a sole proprietorship or general partnership, they actually can.
- Pass-through taxation: as an LLC owner, you do not have to pay any taxes for running your business. In case of any profit or loss in your business, it will be “passed-through” to you and you would have and reported on your personal income tax returns.
- Heightened credibility: if you form an LLC in Dubai, then you will gain credibility in form of partners, employees, vendors and potential consumers. This is because the see your formal commitment to your business in forming an LLC.
- Flexible management structure: upon the agreement of your partners, if any, you can establish any organizational structure. The owners or managers of your company can manage or control the LLC and it is not necessary that you have to have a board of director or officer who would take the major business decisions and daily affairs of your company.
Adam Global is one of the best business advisory firms in Dubai that can help you form an LLC here and also tell you ways to run it smoothly.