Limited Liability Company UAE
Everything You Need to Know About Limited Liability Company
What is a Limited Liability Company?
A Limited Liability Company in UAE is a business structure for private companies and one of the combined aspects of partnerships and corporations. It benefits from the flexibility and flow-through taxation of partnerships while maintaining the limited liability status of corporations.
Advantages of Limited Liability Company (LLC)
Limited Liability Companies offer flexibility and protection both. It makes the corporate structure appealing to business owners. Look at the advantages of LLC.
• Flexibility: A Limited Liability Company can choose between different tax treatments. They can choose to adopt the tax regime of sole partnerships, proprietorship, S and C corporations. The income of a flow-through entity is being treated as the income of the owners. It means the owners of LLC are able to avoid double taxation. With an LLC, income is taxed at an individual member rather than at the company level.
• Protection: Additionally, Limited Liability Companies benefit from the advantages of corporations but the largest benefit is the company’s limited liability status. The company has its own legal entity. It protects members and owners from the operations and debts of the business. As an example, if an employee is found conducting illegal environmental activities. Legal action threatened against the company to pay for damages. The court goes after the assets of the company but not the owners to pay for damages.
• Less Paperwork: Corporations offer Limited Liability but they observe certain requirements and may not be well suited for small run businesses. For instance, corporations must hold annual shareholders' meetings, make annual reports, and pay annual fees to the state. It also tends to have record-keeping requirements.
• Management Structure: Members can manage the LLC Company Setup in Dubai and elect a management group to do so. On the other hand, it has been managed by the board of directors, not by shareholders. Whereas, business management is the responsibility of the directors and officers rather than the owners.
• Simplified Tax Accounting: LLC has the pass-through tax entity status as a sole proprietorship. The profit and loss of the company pass through to the owners and personal tax returns, just like a partnership. It is a much simpler method for tax accounting.
• Personal Liability Protection: One of the main advantages of an LLC, it blends with other business structures together without any disadvantages. LLC is less complicated to set up than a corporation but also offers members personal protection against creditors and the company not being able to pay its debts. LLC can be operated as a sole proprietress or as a partnership while offering protection against personal liability.
Conclusion: About “Quickstep”
Quickstep business consulting is one of the renowned and ever-growing businesses set up in Dubai. They are experts in offering reliable and cost-effective business solutions for the Business Setup in Dubai. They offer premium serving to their clients for over decades.
Quickstep Business Consulting
Quickstep Business Consulting offer business setup services related to Mainland, Free zone and Offshore business set up right from the very basics to Licensing, License renewal and a lot more. We consider the success and growth of the clients as the greatest reward.
We serve as a helping hand for our esteemed clients and provide prompt recommendations and support. Finding a UAE national sponsor is one of our prestigious services. Other services that we offer are Brand Protection, Bank account opening, PRO Services, Company liquidation and many more.