LLC business set up costs

[Chilli]

Hi all,

I've been quoted 21k per year, which covers the local sponsorship fee, and all the paperwork. There's a few other things that it excludes, but does this sound about right? Other companies advertised seem to be around the same kinda cash.

Any thoughts would be appreciated.

Cheers.

[6th Gear]

Hi Chilli,

Ensure you engage a lawyer to create a legal agreement between you and the local sponsor. The side letter should clearly state that as a sleeping partner they have no rights to revenue, income, assets, etc. They are just entitled to their annual sponsor fee. This is on the assumption they aren't contributing towards the business and are just sponsoring you.

Not sure about LLC set up costs.

[Chilli]

Hello mate,

Thanks for that. I'm using one of these specialised companies and have insisted that such things are set out in the T&C's. He said it's standard practice, so the sponsor will waive all rights in return for an annual fee.

[Harris_I]

Chilli, I went down the FZE route with similar costs and it meant I didn't have to have a local sponsor.

[Chilli]

Harris_I said:

Chilli, I went down the FZE route with similar costs and it meant I didn't have to have a local sponsor.

Hiya Harris,

Yeah, tried that but I understand that it has to be a certain business type, which mine isn't!

Cheers.

[Mattt]

Brothels don't qualify?

[Chilli]

Mattt said:

Brothels don't qualify?

"Rent Boyz R Us"..........should go down a storm!

[Desert Dog]

What is the line of business that you're looking at? You may be able to get a professional licence which means that you have an agent as opposed to a partner. Unless you've already investigated that route?

[VanquishDubai]

Hey Chilli,

A mate of mine just set up with Virtuazone. In short, it means you dont even have to have a physical desk and you get an FZLLC trade licnese. He set up an ad agency, but I think you can do pretty much anything with them. (As long as its not selling good outside the freezone of course)

Media City, Internet City and that lot you have to have a physcial desk to set up an LLC and cost is around 15,000aed trade license, 20,000aed desk and set up/joining fees.

Ras Al Khaimah is also a cheap place to set up your Business, a few mates have also done that.

As matey says..depends what you are doing.

[Chilli]

Well, it seems that set-up costs are now up to 130k. This is for all costs involved with 4 staff. Don't really want to go into too much detail on here ATM, but it's looking silly expensive. I've been advised that this type of company isn't allowed within the freezones, and the difference of going with either a trusted local or a specialised sponsor company is 21k a year, so not a huge amount.

[Chilli]

Question. Does anyone know if buying an existing company ( from Dubizzle, for example) is legal and above board?

[Ron Fellows]

Chilli said:

Question. Does anyone know if buying an existing company ( from Dubizzle, for example) is legal and above board?

Yes and if the person selling is genuine you can save money over setting up a new business. Just make sure as someone said above that you get a lawyer involved.