Buying Property Under An LLC Entity To Secure Your Company
Buying property under an LLC in the UAE offers many benefits, especially for entrepreneurs, investors, and business owners. This strategy secures your company’s rights and provides a systematic, tax-efficient approach to asset management.
Opening a property ownership license through an LLC comes with several advantages. Asset protection is a key benefit, as the separation of personal and company assets reduces personal liability. Legal benefits include properties owned through an LLC falling under business law, which offers stronger legal protection. Estate planning also becomes easier, as it facilitates smoother property transfers and minimizes inheritance-related complications.
Choosing the right entity type for holding property in an LLC is crucial. A holding company is ideal for managing multiple assets while maintaining control. An investment company, on the other hand, is suitable for businesses focused on property leasing or real estate investments.
Selecting the appropriate jurisdiction depends on the business purpose. Free zones like Dubai Silicon Oasis (DSO)offer reasonable fees and a streamlined licensing process. Dubai Multi Commodities Centre (DMCC) is known for real estate investment. Dubai International Financial Centre (DIFC) attracts international business investors. Jebel Ali Free Zone (JAFZA) is more suitable for larger-scale industrial or commercial property ownership. Mainland jurisdictions provide greater flexibility for property and business operations across the UAE.
Cost and time-saving opportunities are available in certain jurisdictions. For example, Dubai Silicon Oasis (DSO) provides license issuance at nominal charges along with an efficient registration process.
Managing property portfolios is an area of expertise at RAS Corporate Advisors, where we have successfully transferred property portfolios exceeding AED 50 million into holding companies. Our services ensure a seamless transition while safeguarding client investments.
Financing and mortgage considerations must be taken into account when purchasing a property through an LLC. Typically, mortgage approvals depend more on the owner’s financial standing than the company’s, making it important to plan accordingly.
Transferring property to an LLC is a safer option. Ownership automatically shifts from an individual to the LLC, ensuring limited personal liability, asset protection from claims or personal debts, and a smoother succession process.
Key costs and obligations include several factors. License costs must be accounted for, as a license from the Department of Economic Development (DED) is required to hold property under an LLC. Pricing varies based on jurisdiction. Corporate tax registration is mandatory for all entities as per UAE regulations, with a 9% corporate tax applied to revenues exceeding AED 375,000.
VAT registration becomes necessary if annual rental income exceeds AED 375,000. In such cases, businesses must apply for VAT registration with the Federal Tax Authority (FTA) and charge VAT on tenant rentals, ensuring proper tax reporting.
Opening a business bank account is an essential step for property-related transactions and rental income management. Maintaining a corporate account demonstrates compliance with UAE regulations and streamlines financial operations.
Next steps for property transfer and registration involve registering the LLC with the Dubai Land Department (DLD). Businesses must also complete Real Estate Regulatory Agency (RERA) registration to ensure compliance. If transferring property as a gift, RERA charges a token fee of only 0.25%, compared to the standard 4% transfer fee for regular property transactions.
RAS Corporate Advisors specializes in LLC property transfers, offering expert guidance from company formation to tax compliance. Our team ensures a smooth and legally sound transfer process, providing clients with security and efficiency.
Secure your property today and take the first step toward a stable future. Contact us now to get started!
