A one-person limited liability company is a common legal structure for companies that restricts shareholders’ liability to a certain extent. These structures are favorable for small, medium and even large businesses, as they protect individual shareholder holdings from potential risks to the company.
Itqan is a strong partner in establishing limited liability companies in Dubai and the United Arab Emirates. A one-person LLC is filed in a manner consistent with local laws and regulations.
The main idea behind establishing an LLC is to separate the financial responsibility of the company from the responsibility of shareholders. In other words, shareholders bear no more responsibility for the company’s losses than the capital they put into the company.
This means that if problems or losses occur to the company, shareholders will not be affected by a loss greater than the amount they agreed to provide as capital to the company. This protection enhances confidence among investors and encourages investment in limited liability companies.
What is a limited liability company?
A limited liability company is a type of corporate structure created for the purpose of conducting business and investment. This company is characterized by the limited liability of its owners towards the debts and financial obligations of the company. This means that shareholders or owners in this type of company do not have unlimited personal liability for the debts and financial obligations of the company, but are only responsible for the amount of capital that has been registered for the company.
A limited liability company is a popular form of business organization, especially for small and medium enterprises, as this type of corporate structure provides protection to shareholders from significant financial risks. This type of company can have one or more shareholders, and the company can be wholly owned by one shareholder (single-person limited liability company) or by a number of shareholders.
The main advantage of a limited liability company is that it protects shareholders from the risk of losing their personal money in the event of financial problems or bankruptcy of the company, as the officers of the company are only liable for the amount of capital that has been registered for the company and personal funds are not used to pay off debts.
The role of Itqan Company here comes in providing expertise and consultation to those wishing to establish limited liability companies, as the company provides assistance in establishment procedures, developing strategic plans, and providing the necessary legal and financial advice to ensure the success of the company and its compliance with the strict laws and regulations in Dubai and the United Arab Emirates.
Benefits of establishing a limited liability company for one person.
Establishing a limited liability company for one person provides many benefits and advantages that encourage investment and economic growth, the most prominent of which are:
- Personal Protection: This means that the owner does not have unlimited personal liability for the debts and financial obligations of the business, and this reduces the financial risk of the sole proprietor.
- Ease of management: Since the company is owned by one person, decision-making and management processes are faster and easier without the need for complex decisions to be taken by a board of directors.
- Financial confidentiality: This type of company allows the owner’s financial and business information to be kept confidential, which is important to protect the privacy of the business and the project.
- Encouraging investment: The presence of one-person limited liability companies enhances the investment climate and encourages investment in small and medium businesses.
- Ease of expansion and change: The company can grow and develop without major complications in the administrative structure or personal responsibilities of the owner.
- Legal Recognition: This company provides local and international legal recognition, making it a preferred choice for investment operations and business transactions.
- Flexibility in registration and incorporation: A company can be established and registered relatively quickly and at a reasonable cost compared to some other corporate structures.
- Credibility and trust: Having a one-person limited liability company gives more credibility and trust to customers and business partners.
In general, establishing a one-person LLC is a good option for individuals who want to start their business with flexibility and financial protection, while maintaining a reliable legal structure.
How does a limited liability company differ from other types of companies?
Here is a table showing the main differences between a limited liability company and other types of companies:
| Aspects | Limited Liability Company | Other types of companies |
|---|---|---|
| the responsibility | Liability is limited to the company owners (shareholders), as they are only liable for the amount of registered capital. | Liability is unlimited, as the owners are personally liable for the debts and financial obligations of the business. |
| Property Type | A company can be wholly owned by one person or by a group of people (shareholders). | It can be owned by one person (sole proprietorship), owned by a number of people (partnership firm), or owned by the public (public joint stock company). |
| company management | The sole shareholder can run the company himself or appoint a CEO to do so. | The management system depends on the type of company, as there can be a board of directors and a CEO or one or more directors under the supervision of shareholders. |
| Financial obligations | The shareholders’ personal investment (capital) is the maximum of their financial responsibility. | Owners are personally liable for the debts and financial obligations of the business, and personal assets can be used to repay debts. |
| Taxes | The tax system depends on local and international legislation, and there may be tax advantages for this type of company. | Taxes vary depending on the type of company and local and international tax legislation. There may be differential tax rates. |
| Bankruptcy and settlement | Bankruptcy and settlement are handled in accordance with local and international laws and legal regulations. | Bankruptcy and settlement are handled in accordance with applicable laws, and in some cases bankruptcy can result in personal liability for shareholders. |
This table can help you understand the main differences between a limited liability company and other types of companies in a simple and smooth way. For more information, you can contact Itqan Company
Legal procedures for establishing a limited liability company for one person in Dubai
Here are the basic legal procedures for establishing a limited liability company for one person in Dubai:
- Choosing a name and type: A name for the company must be chosen that complies with the laws and regulations of Dubai, and the type of company must be specified (such as a limited liability company for one person).
- Determine the main place of business: The main place of the company must be determined, whether it is an office or the headquarters of business operations.
- Appointment of director and sole shareholder: The director and sole shareholder of the company must be appointed, and the same person can be in both positions.
- Preparing legal documents: The Memorandum of Association, the decision to appoint the manager, and the Declaration of Establishment must be prepared and submitted to the legal authorities.
- Obtaining licenses and licenses: You must obtain the necessary licenses and licenses to start commercial operations, such as a commercial license, office license, and activity license.
- Registration in official records: The company must be registered in the official corporate records in Dubai and submit the necessary legal documents.
- Thus, applying for taxes: The company must be registered for taxes and the appropriate tax system must be determined.
- Also signing contracts and agreements: The necessary contracts and agreements must be signed with customers, business partners and suppliers.
- Then open a bank account: A bank account must be opened in the company’s name to manage financial operations and banking transactions.
These are the basic steps and some procedures may vary depending on the local laws and regulations in Dubai. It is always advisable to check the exact procedures with a legal advisor or a trusted local business services office to ensure full compliance with the laws and legislation for company formation in Dubai .
A one-person limited liability company
A one-person limited liability company can be created in Jebel Ali. This type of company is one of the forms of legal entities available to investors in the Jebel Ali Free Zone.
There are several advantages to a one-person limited liability company in Jebel Ali:
- First and foremost, sole proprietorship: This company enables its owner to own the entire company without the need for other partners.
- Limited Liability: This legal structure limits the owner’s liability only to the extent of the capital invested in the company.
- This is the ease of establishment and operation: procedures for establishment and registration are simpler compared to some other forms of companies.
- However, flexibility in management: The owner has broad powers in managing the company and making decisions.
- Also tax incentives: A one-person limited liability company benefits from the tax incentives available in Jebel Ali.
Therefore, establishing a one-person limited liability company in Jebel Ali is an attractive option for investors wishing to create an independent legal entity with sole management and favorable tax incentives.
A one-person limited liability company
How can we support you in opening a commercial register in Dubai?
Itqan Company can support you in several aspects to open a commercial register in Dubai and facilitate the company establishment process. Here are some ways that Itqan can provide support:
- First and foremost, choosing the appropriate corporate structure: Providing advice on the appropriate corporate structure for your business, whether it is a limited liability company, a one-person limited liability company, or an individual company.
- Second, preparing legal documents: Helping you prepare the necessary legal documents to establish the company, such as the articles of association and articles of association.
- In addition to registering with government agencies: assisting you in the registration process and obtaining the necessary permits and authorizations from the relevant government agencies.
- However, legal advice: providing the necessary legal advice to ensure that the incorporation process takes place in accordance with local laws and regulations.
- Then financial support: providing financial support to cover establishment costs such as registration and license fees.
- In addition to administrative services: providing administrative services such as renting offices and providing a commercial address for the company.
- Thus, logistical support: providing the necessary logistical support such as postal services and delivery services.
- Also Guidance and Training: Providing guidance and training to better understand business management and comply with stringent laws and standards.
Therefore, you can speak with representatives of Itqan Company to discuss your specific needs and receive the appropriate support to open a commercial register in Dubai and build your business successfully.
Our role in one-person company services
In conclusion, the LLC is one of the attractive legal structures for investors wishing to set up a business in the UAE, especially in the Jebel Ali Free Zone.
Thus, in cooperation with Itqan Financial and Consulting Services Company, investors can benefit from specialized expertise in establishing limited liability companies and managing them with high efficiency. Itqan helps in the proper establishment of the company, choosing the most appropriate organizational structure, and taking the necessary steps to register it and organize its business in accordance with the laws and regulations in force in the Emirates.
Also, through a limited liability company, the investor benefits from many advantages, most notably limited financial liability, flexibility in management, and encouraging tax incentives. This company also enables the investor to focus on developing his business without worrying about personal responsibility.
Therefore, in partnership with Itqan , investors can benefit from extensive experience in establishing and managing successful limited liability companies in Jebel Ali. This legal model is a strategic choice for investors aspiring to establish a stable and prosperous business in this vital region.
Frequently asked questions about a one-person LLC
What is a one-person LLC?
A one-person LLC is a company established under only one owner, who is liable for the company’s debts to a certain extent.
What are the advantages of creating a one-person LLC?
The advantage of a one-person limited liability company is that it provides legal protection for one owner and facilitates management and operation.
Can non-UAE citizens establish a one-person LLC in Dubai?
Yes, non-UAE nationals can establish a one-person LLC in Dubai provided there is a 100% local partner.
Does a single owner of an LLC have to pay basic capital?
No, the sole proprietor does not have to pay the basic capital, but it must be specified in the company’s founding documents.
Can a one-person LLC be changed to another company?
Yes, a one-person limited liability company can be changed to another company form, such as a joint stock company or a limited liability company, according to the procedures adopted in the country.
