LLC Company Formation in Dubai, UAE: Step-by-Step Guide

LLC Company Formation in dubai

Starting a limited liability company (LLC) in Dubai is an excellent choice. Dubai is a top destination for business setup, offering strong economic opportunities and advantageous conditions.

Dubai is part of the UAE, with a large economy ranking 30th globally and second in the Middle East and North Africa. The UAE’s free trade zones allow 100% ownership, no income tax, and top-notch infrastructure. These benefits, combined with Dubai’s strategic location, make it an ideal place to launch a company.

Creating an LLC in Dubai is uncomplicated when you collaborate with experts like Company Setup Consultants, specializing in company formation. They can swiftly guide you through the process, ensuring a smooth start. By the end of this article, you’ll have a clear understanding of how to proceed with LLC company formation in Dubai.

What is LLC Company Formation in Dubai?

A Limited Liability Company (LLC) is the most commonly chosen business structure in the UAE. It requires a minimum of 2 and a maximum of 50 shareholders, whose liability is limited to their shares in the company’s capital. This means that shareholders enjoy personal protection from liabilities under the business laws in Dubai.

By forming an LLC, you gain access to a broader range of business activities for company establishment. However, it is important to note that when establishing a limited liability company in Dubai, it is mandatory to partner with a local sponsor (UAE national) who holds 51% ownership of the company. As an expatriate, you would retain control over the remaining 49%. Trustworthy local sponsors act as silent partners, allowing you to maintain 100% operational ownership of the business.

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How to Open an LLC Company Formation in Dubai, UAE?

Step 1: Choose a Name

Select a suitable name for your company and specify its intended operations.

Step 2: Select a Location

Choose a strategic location based on factors like market accessibility, business nature, and transportation options.

Step 3: Select a Business Activity

Pick the right business activity that aligns with your plans. Professionals like Company Setup Consultants can assist in finding the best fit.

Step 4: Submit Documents to DED

Submit all required documents to the Department of Economic Development (DED) for approval.

Step 5: Activity Approval

For specific business activities, you may need approval from relevant authorities beyond DED.

Step 6: Other Documentations

Once your company’s activity is approved, you can secure licenses, including Memorandum of Association, Certificate of Incorporation, Trade license, Share certificates, Visas, Tenancy agreement, Labor cards, and other essential legal documents.

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Benefits of Starting an LLC Company in Dubai, UAE

Starting an LLC in Dubai, UAE comes with several important advantages:

  1. Swift Setup: LLC company formation is efficient and speedy. You can register your business with the Department of Economic Development (DED) within just 90 minutes. Typically, the process takes around four to five days, although certain factors like government certifications can cause delays.
  2. Tax Advantages: UAE-based LLCs enjoy complete tax exemption, meaning they don’t have to pay taxes on any of their income.
  3. Wide Business Scope: An LLC can engage in a diverse range of business activities. Whether it’s agriculture or travel, you can obtain a DED license for any of the 2,000 permitted economic activities.
  4. Full Foreign Ownership: Some license categories no longer require a UAE National Sponsor, granting the opportunity for 100% foreign ownership in non-free zone enterprises.

Cos of LLC Company Formation in Dubai, UAE

Starting an LLC in Dubai costs around AED 18,500. Extra fee of AED 2,000 for foreign trade name. Renewal costs AED 8,000 – AED 15,000. Similar costs for most activities, but visas, insurance, approvals, and trade name can alter the total.

Documents Required for LLC Company Formation in Dubai, UAE

To start the LLC registration process in Dubai, you’ll need:

  • Investor’s passport copy
  • Local sponsor’s passport copy
  • No Objection Certificate (if shareholder works in a UAE company)
  • Emirates ID copy
  • DED registration application form
  • Attested tenancy contract for office space
  • Attested Memorandum of Association from public notary

It is important to ensure that all documents are properly filled out, signed, and notarized where required. Additionally, be prepared to provide any other documents or details as requested by the DED during the application process.

Setting up an LLC company in Dubai is straightforward:

  1. Decide your legal entity.
  2. Pick a trading name.
  3. Apply for an LLC license.
  4. Select an office space.
  5. Obtain pre-approvals, register, and get your license.

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Frequently Asked Questions About LLC Company Setup in Dubai

How do I start an LLC in Dubai?

Starting an LLC company in Dubai, UAE involves four main steps. Here’s a simplified breakdown:

  1. Register Company Name: Begin by registering your company name.
  2. Submit Documentation: Provide necessary documents to the DED for a business license.
  3. Complete Visa Process: Once approved, proceed with the visa process.
  4. Open Bank Account: Finally, open a bank account for your LLC.

These steps outline the process of initiating an LLC company formation in Dubai.

How much does it cost to set up an LLC in Dubai?

Setting up an LLC in Dubai typically costs between AED 20,000 to 30,000. But remember, costs can differ based on your industry and required services. Additionally, the investor visa expense falls within AED 4,000 to 5,500. Employee hiring fees vary, ranging from AED 5,000 to 7,000 based on their category.

What is an LLC License in UAE?

If you want to setup a Limited Liability Company in UAE, then you must obtain the LLC License in UAE. The business trade license in the UAE allow you to perform your business activities legally inside and outside the country.

In addition, obtaining a business trade license is one of the main steps of starting any business in the UAE. As a result, obtaining the LLC license is crucial if you want to setup a LLC company in UAE.

Where do I Register my LLC in Dubai?

If you want to setup a Limited Liability Company in Dubai, then you need to register it from the Department of Economic Development in Dubai. This is because the Department of Economic Development in Dubai is responsible for handling the registration of any new business in the mainland.

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If you want to setup a Limited Liability Company in Dubai free zones, then you will have to register it from the respective authorities of the free zone you have in mind.

How can I Open a Limited Company in Dubai?

The steps needed to setup a Limited Liability Company in Dubai require you to obtain the business trade license in Dubai. To clarify, when applying for the license from the Department of Economic Development in Dubai or one of the free zone authorities, you will need to select the company structure of your business.

After that, you will need to select the Limited Liability Company structure.

How Many Partners can an LLC have in Dubai?

An LLC (Limited Liability Company) in Dubai can have a minimum of 2 partners and a maximum of 50 partners.

What is the difference between an Ltd and LLC?

The main difference between an Ltd (Limited Company) and an LLC (Limited Liability Company) lies in their legal structures and the level of liability protection they offer to their owners. Here are the key distinctions:

a). Legal Structure: An Ltd is a commonly used business structure in countries like the United Kingdom and refers to a private limited company. It is a separate legal entity from its owners and is required to have at least one shareholder and director. On the other hand, an LLC is a business structure commonly found in the United States and several other countries. It combines elements of a corporation and a partnership, providing flexibility in terms of ownership and management.

b). Liability Protection: Both Ltd and LLC offer limited liability protection, which means that the owners’ personal assets are generally protected in the event of business debts or liabilities. In an Ltd, shareholders’ liability is limited to the amount they have invested in the company. In an LLC, members’ liability is limited to their capital contributions unless they personally guarantee certain obligations.

c). Ownership and Management: Ltd companies have shareholders who own shares in the company, and the company is managed by directors appointed by the shareholders. In an LLC, the owners are called members, and they can have a more flexible structure for ownership and management. Members can actively participate in the management or appoint managers to run the day-to-day operations.

d). Legal Requirements: Ltd companies are typically subject to specific legal requirements, such as filing annual financial statements and adhering to corporate governance regulations. LLCs, on the other hand, often have less stringent legal requirements, providing more flexibility and ease of operation.

Do I need a local sponsor for LLC in Dubai?

When establishing an LLC company in Dubai, it is a requirement for expatriates to have a local sponsor who is a UAE national. The local sponsor must hold 51% ownership of the company, while the expatriate can hold 49% ownership. This arrangement ensures compliance with the legal framework for foreign ownership in the UAE.

How can Company Setup Consultants help you?

If you are going for an LLC company formation in Dubai but do not know where to get started, then you are in the right place. Our experts have started Limited Liability Companies all over the UAE for various entrepreneurs and corporations from all over the world. Contact us today and hit the ground running.

For further information and assistance on how to register your LLC company in Dubai and the UAE. To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at

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2 thoughts on “LLC Company Formation in Dubai, UAE: Step-by-Step Guide

  1. KWS Middle East says:

    Thanks for the blog about setup LLC company in Dubai it is very helpful.

  2. Praveen says:

    I am interested in starting an LLC in Dubai. Your blog post was very informative and helpful. I especially appreciated the step-by-step guide. Thank you for sharing this valuable information!

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