With Dubai’s rising property prices and rental yields famously outstripping those of London, New York and other global hotspots, the emirate’s real estate sector attracts admirers worldwide.
For foreign investors looking to invest in Dubai real estate, there are many options available. Non-GCC citizens can hold property as individuals or establish a separate legal entity for real estate purchases and management. The approach that’s right for you will depend on your circumstances and your plans for your property portfolio.
So, for anyone looking to invest in real estate and wondering, “Can an LLC firm own property in Dubai?”, this article addresses the question in detail.
Is it possible for an LLC firm to own property in Dubai?
The short answer is yes – an LLC firm can own property in Dubai. However, certain conditions must be adhered to. Most notably, foreign investors can only hold property in designated areas across the emirate.
The good news is that many of the available areas are among the most sought-after locations in Dubai, including:
- Downtown
- Palm Jumeirah
- Jumeirah Beach Residence (JBR)
- Jumeirah Lake Towers (JLT)
- Dubai Marina
- Business Bay
- Emirates Hills
Benefits of owning a property through an LLC in Dubai
There are numerous benefits to purchasing and owning property through an LLC in Dubai.
1. Asset protection
Purchasing property through an LLC separates the assets from your personal liability. This shields any property held by the LLC from personal legal or financial issues while protecting you against any similar issues affecting the property.
2. Easy management
All property held by an LLC can be easily transferred throughout the company ownership structure. It is not impacted by lengthy and complex inheritance and probate processes.
3. Tax advantages
There is no corporate or income tax to pay on real estate profits in the UAE. Any other income generated by your LCC is taxed at 0% on profits under AED 375,000 and just 9% beyond this figure.
4. Privacy
As property is held in the company’s name rather than the individual’s, LLCs offer an extra layer of privacy in business dealings.
Steps to purchase property as an LLC firm in Dubai
Starting a business to purchase property can seem complex. But when you work with the team at Creative Zone, we’ll help you launch your new venture in just five simple steps.
Step 1: Outlining your business activities
Before establishing your LLC in Dubai, you’ll need to decide what you intend to do with your business. If you plan to rent the property on a short- or long-term basis, you’ll need to ensure that you are correctly licensed.
Your intended activities must be chosen from the official list published by Dubai’s Department of Economic Development (DED).
Step 2: Choosing your company name
The next step is equally important: choosing a company name. There are a few key things to keep in mind at this stage – many that would not apply anywhere else in the world.
Be aware that you must abide by a strict set of naming conventions. In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step 3: Making your license application
With these early decisions made, you are free to apply for a trade license in the UAE. This application should be made to Dubai’s Department of Economic Development.
At this stage, you must submit documentation along with your completed application. This may include copies of your passport and certain financial and business records.
Step 4: Making your visa applications
As the owner of an LLC in Dubai, you can also apply for a UAE residency visa. With the right guidance, the visa application process can be incredibly straightforward. Once again, the team at Creative Zone will guide you through this step.
You can also sponsor others for their visas. This could be a spouse, parent or child, or a domestic worker such as a housekeeper. The maximum number of visas you can apply for will depend on the size of your company, your chosen setup, and, for dependant visas, your personal earnings.
Step 5: Purchase property
Now that your business is established in the UAE, you are free to purchase property through your LLC. First, you should ensure that the property is in an eligible area. Once the sale process is complete, you must register the property under your LLC with the Dubai Land Department (DLD).
About Creative Zone
While it’s true that LLC firms can own property in Dubai, to achieve this you must first navigate the UAE’s company formation process. This can be a complex undertaking if you are new to doing business in the region.
That’s why selecting the right partner is critical when looking to launch or grow a business out here. As the Middle East’s most trusted business setup advisor, Creative Zone has been empowering entrepreneurs and SMEs with comprehensive support since 2010. With a great reputation for assisting businesses locally and globally, we offer a complete range of solutions for all your business setup needs.
When you work with us, you get fast, reliable and unbiased advice on your unique business setup requirements. We can help you choose the right kind of license for your business activity and take you through the entire process from start to finish.
We’re here to assist every step of the way. No matter your chosen activities, legal entity or visa requirements, we’re on hand with support, guidance and expertise. So, if you’re looking to lay the foundations for life in the UAE, Creative Zone is your ideal starting point.
Contact us today to kickstart your business in Dubai.
