Dubai has a very fast growing economy which makes it very desirable for businessmen to start their business setup company in Dubai. Now people are more inclined towards starting their limited liability company or generally known as LLC. This is because of its features which are a mixture of sole proprietorship, partnership and corporate company. LLC has many advantages of these three as combined that’s why people are now want to start these companies. To start an LLC first of all you have to pay for Dubai LLC license fees so that you can get the license to start your own company. There are many advantages of LLC and to know about the few advantages out of many others you should look at here:
Perpetuity: Perpetuity is the feature of corporate companies which is not available in partnership and sole proprietorship but this feature is also available in LLC. Perpetuity in general language is that a company can run for an unlimited time period which means there is no expiry date of the corporate companies. It is a very important feature of LLC which it shared with corporate companies.
Annual meetings: It is also a vital feature of corporate firms that they need to arrange meetings of members on annual basis if they fail to arrange them then they can be dissolved on this basis. In this situation arranging annual meetings is a liability for the corporate firms but LLC is free from this liability just like sole proprietorship and partnership. These three do not need to gather their members on annual basis.
Stock issuance: A corporate firm has to issue its stock to general public and an LLC can do the same in order to increase its capital whereas sole proprietorship and partnership cannot issue their stock to general public. They can take loan from banks or other financial institutions but they cannot issue their stock.
Tax returns: In LLC it is a benefit for their owner that they can show the profit and loss of their business into their personal tax return. In this way they can get benefit from their business in their personal tax returns too. This facility is not available for corporate firm owners. They have to file different corporate and personal tax returns.