Are you looking to enter the UAE market as a solo entrepreneur? You should establish the One Person Company (OPC). If you are a UAE national or GCC citizen, you can now set up an LLC with just one owner in Dubai. This business structure is ideal for entrepreneurs and investors seeking to minimize their liability while benefiting from Dubai’s tax advantages.
The business has the same provisions as other mainland LLCs. A single-person LLC protects the personal assets of the owner from any company liabilities.
In this article, we discuss the formation and benefits of a single-person LLC in Dubai. We cover all the requirements and provide affordable cost solutions for the establishment of OPC LLC in Dubai. At Now Consultant, our business setup consultants help you in the formation of OPC LLC, making it easy for entrepreneurs to establish their presence in the UAE.
What Is The Meaning of OPC LLC In Dubai
A One-Person Company (OPC) LLC in Dubai, UAE, is a modern business structure that allows an individual to set up and operate a company independently. It combines the flexibility of a sole proprietorship with the protection of a Limited Liability Company (LLC), offering LLC advantages without requiring multiple shareholders. So it is like enjoying two types of benefits in one company.
Recent updates to Dubai’s LLC regulations now allow all commercial, industrial, tourism, and most professional activities, excluding consulting firms, to be conducted as a single-person company.
Ownership Of One Person or Single Owner LLC In Dubai
Limitations:
There are a few key points to note regarding the ownership of a one-person company in Dubai:
- Foreign nationals living and working in Dubai cannot establish a one-person company
- Only UAE or GCC (Gulf Cooperation Council) citizens can establish and own a one-person company.
- A corporate body wholly owned by a UAE national and GCC citizens can form and own a one-person company in Dubai.
Here are the key aspects of the structure of a one-person company:
- In a one-person company, the owner holds the company license and is also the sole shareholder.
- A nominee director can be appointed, but one has no authority unless the owner, who is also the director, is unable to conduct business transactions.
- A one-person company cannot receive equity funding or offer employees stock options.
When it comes to business operations, a one-person company must adhere to the following regulations:
- The owner of a one-person LLC must appoint a manager.
- The owner can choose to be the manager himself or appoint someone else.
- There are no nationality restrictions for the manager, but a one-person company may not have more than 11 managers simultaneously.
- If the company changes managers, it must notify the relevant government authorities within 30 days and appoint a new manager within the same period.
Requirements To Open One Person LLC:
In order to obtain a one-person LLC license from the DED, the investor (company owner) needs to gather, fill out, and submit the following necessary application and registration documents to the DED.
The company owner needs to submit the following documents:
- A certified copy of the owner’s passport
- Proof of residence
- A copy of the appointed manager’s passport
- Personal details of the sole company owner
- A notarized and officially verified Memorandum of Association
- The trade name of the one-person company
- Original documents from the company owner
Dubai Economy will review these documents and issue the trade license for single-owner LLC based on this review.
How To Open One Person LLC In Dubai, UAE?
In order to open one personal LLC in Dubai or the UAE, UAE nationals or GCC citizens must follow the five steps as given below:
- Choose and register your trade name.
- Prepare the Memorandum of Articles & Association (MOAA).
- Obtain an Establishment Card.
- Get the Single Owner LLC license.
- Apply for a corporate bank account.
The business setup experts at Now Consultant handle all the necessary paperwork and documentation, ensuring you obtain your trade license for a single-person LLC efficiently and cost-effectively. Our team will manage every aspect of the registration process with Dubai Economy.
Costs of Setting Up a Single Owner or OPC LLC:
The cost to establish a one-person company in Dubai ranges from AED 10,000 to AED 30,000. This price can vary depending on factors such as the business type, registration fees, office space requirements, and government charges.
For accurate and reasonable registration costs for a one-person company in Dubai, you need to approach the professional team at Now Consultant. We have extensive experience setting up one-person LLCs in Dubai and throughout the UAE.
Benefits of Setting Up An OPC LLC In Dubai:
Setting up a Single Person LLC in Dubai offers many business benefits. As the sole owner of a Single Person LLC in Dubai, you can:
- Be 100% owner, director, and shareholder of the company.
- Free to make all decisions regarding the company’s operations.
- Hire new employees as needed.
- Enjoy increased liability protection.
- Choose between filing taxes as a sole proprietor or a corporation.
- Expand your range of business activities and make connections more easily.
- Transfer ownership to family members if desired.
- Keep personal assets protected from company liabilities.
- Receive a three-year residence visa if you are not a UAE national (but must be a GCC citizen)
How Can We Help You?
If you want to set up a one-person LLC in Dubai or the UAE, you need expert guidance from business setup experts such as Now Consultant. Our professionals make setting up a one-person LLC in Dubai much easier. Experts at Now Consultant help you avoid delays and rejections, simplifying the entire application and setup process for your single-owner company in Dubai.
Now Consultant helps you submit the necessary documents, fulfill the requirements of government authorities, and deal with the Dubai Economy on your behalf. Our business setup experts help you throughout the application process from choosing your trade name to getting the single-owner LLC license from Dubai Economy in compliance with all the regulations.
FAQs:
What Happens To The OPC LLC If The Owner Dies?
The OPC LLC has a feature called perpetual succession, which means it continues to exist even if the owner dies. When setting up the OPC, the owner must appoint a nominee. If the owner passes away, the nominee will take over and manage the company.
