Can an LLC Company Own Property in Dubai Under UAE Law?

Dubai’s property prices keep climbing, and its rental yields beat those in London, New York and other global hot spots. That makes the emirate’s real estate sector attractive to investors globally.

There are multiple ways for foreign investors to capitalize on the Dubai real estate market. Property can be purchased either individually or a separate legal entity can be established for property purchase and management in case of non-GCC citizens.

UAE LLC Company Law is critical in defining such companies’ legal framework and ownership rights. The best option for you depends on your unique situation and long-term property investment goals.

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Can an LLC Firm Legally Own Property in Dubai?

Yes, an LLC company can own properties in Dubai as long as certain conditions have been met. Most significantly, foreign investors can invest only in certain areas of the emirate.

Limited liability laws are a key factor in establishing the ownership hierarchy and the legal parameters that apply to LLC firms as they acquire real estate.

The silver lining of such low returns is that most of these places are considered to be the most sought-after areas in Dubai, such as:

Downtown
Palm Jumeirah
Jumeirah Beach Residence (JBR)
Jumeirah Lake Towers (JLT)
Dubai Marina

Benefits of Owning Property Through an LLC in Dubai Under UAE LLC Company Law

1- Asset Protection

Purchasing real estate through an LLC will separate your assets from any personal liabilities thereby providing more financial protection. This structure insulates the property from personal legal or financial problems and protects you from any liability from the property itself.

Furthermore, UAE company laws offer a tangible legal structure designed to underpin those safeguards.

2- Easy Management

Holding Property in an LLC Is Easier to Manage and Transfer The property is retained within the company’s structure, allowing for smooth, efficient transitions without long and complicated inheritance and probate processes.

3- Tax Advantages

Property investment remains highly attractive because the UAE does not levy corporate or income tax on profits from real estate. Further, UAE laws ensure that any other income generated by your LLC is taxed at 0% on profits up to AED 375,000 and only 9% on the amount beyond this limit.

4- Privacy

LLCs offer greater privacy in business transactions because property is held in the name of the company, rather than the individual. This extra layer of privacy safeguards both the investor and the investment.

How to Buy Property in Dubai as an LLC Firm

First step: describe your business activities

Next, you must identify your business activities before you create an LLC in Dubai. If you intend to rent out the property for short- or long-term stays, obtain the appropriate licenses.

According to UAE LLC company law, all business activities must correspond with the official list provided by Dubai’s Department of Economic Development (DED). Do make sure that the activities you select are compliant with these regulations so you can avoid legal problems.

Step 2: Choose Your Business Name

After that, pick an appropriate name for your company, as Dubai has strict naming conventions.

Avoid any potentially offensive or blasphemous language, the names of well-known organizations, and abbreviations when using personal names (e.g. “Dave Mann Consulting” rather than “D Mann Consulting”). However, before you get ahead of yourself, make sure the name you want to register is still available.

Step 3: Register for Your Trade License

After making your primary choices, you can commence your trade license application process in the UAE. Apply to the Dubai’s Department of Economic Development (DED) with the necessary documents.

As per the Laws of Exchange Companies in the UAE, without submitting the copies of the applicant’s passports, financials, and any business documents, the whole process cannot be completed.

Step 4: Apply for Your Visas

An LLC owner in Dubai can apply for a UAE residency visa. Psychologists can also help with the transition. Visa sponsorship for family members & domestic workers You can also sponsor visa for family members (spouse, children, parents) and domestic workers like housekeepers.

Step 5: Purchase Property

With your business officially established in the UAE, you can now buy property through your LLC. First, confirm that the property is in an eligible area. After finalizing the purchase, register the property under your LLC with the Dubai Land Department (DLD) to complete the process.

Conclusion

Asset protection, privacy, and tax benefits are just a few of the benefits of owning property in Dubai via an LLC. On top of that, real estate management becomes considerably easier.

The UAE LLC company law governs the rules and regulations for property ownership, providing a legal framework for compliance and security for investors.

Through an LLC, foreign investors can also own real estate in certain areas, such as Downtown Dubai, Palm Jumeirah, and Dubai Marina.

Such structuring provides personal asset protection, simplifies the inheritance legal process, and helps provide cash flow flexibility.

Investors must go through several key steps, including defining their business activities, choosing an appropriate name, applying for a trade license, requesting visas, and finalizing the purchase up with the Dubai Land Department (DLD) to buy property as an LLC.

Having said that, Contact Khairallah Advocates & Legal Consultants and benefit from our free 30-min legal consultation.

*Disclaimer: our blogs, law updates and FAQ’s are freely distributed for educational purposes and to showcase recent updates and regulations in the UAE’s framework.

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