Starting an LLC (Limited Liability Company) in Dubai is one of the most popular and flexible options for entrepreneurs and businesses looking to establish themselves in the UAE. Moreover, Dubai offers excellent transportation infrastructure, including easy access to major airports, making it a prime location for businesses to operate efficiently. These advantages make forming an LLC in Dubai a highly attractive choice.
The LLC structure has gained significant popularity in recent years, thanks to the favourable laws introduced by the UAE government. Investors and business partners can benefit from the corporate structure, which combines the flexibility of a straightforward business partnership with minimal complications.
What is the LLC Meaning in Dubai?
In Dubai, LLC stands for Limited Liability Company, a famous business structure due to its flexibility and shareholder legal protections. An LLC provides limited liability, meaning that the shareholders’ assets are protected, and their liability is restricted to the extent of their capital investment in the company.
The most common type of company in the UAE mainland is the LLC (Limited Liability Company), with the Dubai Department of Economic Development (DED) being the official authority responsible for issuing all LLC licenses. In addition to this, the DED oversees the classification and regulation of the economic activities that LLCs are permitted to engage in, ensuring compliance with local laws and regulations.
For LLC company formation in Dubai, recent regulations allow 100% foreign ownership in many sectors, eliminating the previous requirement for a local Emirati sponsor. This gives foreign investors complete control over their businesses while enjoying access to Dubai’s local market and international trading opportunities.
Benefits of LLC company Dubai
Setting up a Limited Liability Company (LLC) in Dubai offers several key benefits:
1. Local Market Access
An LLC allows companies to conduct business directly in the UAE market, unlike free zone companies restricted to operating within their respective zones or internationally.
2. Ownership Flexibility
Since June 2021, the UAE has introduced laws allowing 100% foreign ownership of LLCs in various sectors, removing the need for a UAE national sponsor.
3. Limited Liability
Shareholders in an LLC are only liable to the extent of their shares in the company, protecting personal assets from company liabilities.
4. Tax Advantages
Dubai offers a favourable tax environment with 0% corporate and personal income tax, though a 9% corporate tax is introduced for profits exceeding AED 375,000.
5. Broad Business Activity
LLCs can conduct various business activities, including trading, manufacturing, and professional services.
6. Flexibility in Location
LLCs can set up their business anywhere in Dubai, not just limited to free zones, which provides flexibility regarding office location.
7. No Minimum Capital Requirement
No minimum capital requirement for forming an LLC makes entry more accessible.
8. Ease of Expansion
LLCs are well-suited for companies aiming to expand into other parts of the UAE or the broader Gulf region, as they can open branches in other emirates without restrictions.
9. Residence Visa Eligibility
An LLC setup enables shareholders, employees, and their families to apply for UAE residency visas.
These benefits make LLCs one of Dubai’s most popular business structures for entrepreneurs and investors.
Types of LLC Licenses in Dubai
Dubai offers several Limited Liability Company (LLC) licenses tailored to various business activities. Below are the details of each license type:
1. Commercial License
A commercial license is a legal authorisation that allows individuals or businesses to engage in commercial activities, such as selling goods or services. It specifies the types of activities permitted and requires compliance with local regulations. Many licenses need periodic renewal, with associated costs varying by jurisdiction. Additional restrictions apply in places like Dubai and Abu Dhabi based on the business’s location.
2. Professional License
In contrast, the Professional License is intended for professionals providing consultancy, healthcare, legal, and educational services. This license does not necessitate a local sponsor; however, a local service agent may be needed to facilitate certain activities.
3. Industrial License
The Industrial License is the appropriate choice for manufacturing and industrial operations businesses. It covers goods production, processing, and assembly, requiring a minimum capital investment and compliance with local regulations.
4. Tourism License
Lastly, the Tourism License is aimed at businesses in the tourism and hospitality sector, including travel agencies, tour operators, and hotel services. Obtaining this license involves adhering to specific tourism regulations and may require additional permits.
Each license type serves distinct business needs, so it’s advisable to consult with a business setup advisor just like Shuraa business setup for guidance to your particular business model.
How to Open an LLC Company in Dubai, UAE
To establish a Limited Liability Company (LLC) in Dubai, you must comply with the UAE government’s legal frameworks and business guidelines. Here’s a step-by-step guide to help you through the process of forming an LLC in Dubai:
Step 1: Choose your Business Activity
The first step in setting up an LLC is determining your business activity. Dubai’s Department of Economic Development (DED) offers a list of approved activities, from trading to professional services, which will help shape your company’s structure and licensing requirements.
Step 2: Register a Name for Your LLC Company
Choosing a compliant and appropriate company name is crucial. The name should comply with Dubai’s naming regulations, avoiding offensive language, religious references, or abbreviations of names. It must also reflect the nature of your business and should not be like other registered businesses.
Step 3: Find a Location for Your Company
Decide on a business location and apply for an initial approval certificate from DED. Remember that this certificate won’t be issued if your trade name is rejected.
Step 4: Select an Office Space
You’ll need to rent office space, whether on the mainland or in a free zone. Mainland businesses require mandatory office space, whereas free zones offer more flexibility, including the option for a virtual office.
Step 5: Obtain Pre-approvals
Prepare all necessary documents, including the Memorandum of Association (MoA) and Local Service Agent (LSA) agreements. Partnering with a trusted local sponsor ensures your business complies with legal requirements.
Step 6: Apply for an LLC license
Submit all necessary documentation to obtain your LLC trade license. Once your application is approved and documents are verified, you will be issued your trading license.
Step 7: Complete the Visa Process
Apply for labour cards and process visas for yourself and your partners. With all documentation in place, your LLC is legally ready to operate in Dubai.
Step 8: Open a Corporate Bank Account
After receiving your trade license, you can open a corporate bank account for your LLC. Choose a bank that offers benefits aligned with your business activity to manage your finances and transactions efficiently. Each bank has its benefits; you can choose the one which is suitable for your business activity.
Documents Required for LLC Company Formation in Dubai
To successfully form an LLC in Dubai, you’ll need to gather the following documents:
- Passport Copy – A valid copy of your passport.
- Emirates ID – A copy of your Emirates ID (for residents).
- Passport-sized Photo – Recent and clear.
- Business Plan – A detailed plan outlining your business objectives.
- Application Form – Completed and signed.
- No Objection Certificate (NOC) – If applicable, from your current sponsor or employer.
These documents are essential to ensure a smooth LLC formation process in Dubai.
Cost of LLC Company Registration in Dubai
The cost to register an LLC (Limited Liability Company) in Dubai starts at approximately AED 18,500. If you choose a foreign trade name or non-Arabic name, an additional fee of AED 2,000 will apply. The cost to renew an LLC license in Dubai ranges between AED 8,000* and AED 15,000*, depending on the business type and other factors.
The cost of setting up a limited liability company in Dubai for most economic activities is almost the same. The only factors that may change the cost are the number of visas applied for, the chosen medical insurance, additional approvals from relevant governmental authorities, and foreign trade names.
Connect with our experts to get an exact quote for LLC company formation.
Start you LLC Company with Shuraa!
An LLC company formation needs you to have an in-depth understanding of several business dynamics in the UAE. Our business consultants educate you about various LLC company requirements and how to manage them.
We can become your silent local partners and give you 100% operational ownership. Shuraa has already helped 50,000+ companies establish themselves in the Dubai marketplace. Are you ready to form your limited liability company in the UAE? Connect with Shuraa, and we’ll do it together.
To book a free consultation, call +971 44081900. You can also send a WhatsApp message at +971 50 777 5554. To connect by email, send us your query to [email protected].
Frequently Asked Questions
Q1. What is an LLC formation in Dubai?
An LLC (Limited Liability Company) in Dubai is a business structure where partners’ liability is limited to their shares in the capital. It is the most common business setup for foreign investors in the UAE.
Q2. What is the LLC license cost in Dubai?
The LLC license cost in Dubai starts from AED 18,500*. The exact amount may vary based on business activity and additional services.
Q3. How to start an LLC in Dubai?
To start an LLC in Dubai:
- Choose a trade name.
- Select business activities.
- Obtain initial approval.
- Draft a MoA (Memorandum of Association).
- Secure a business location and apply for the license.
Q4. How Many Members Can an LLC Have?
An LLC in the UAE can have between 2 to 50 members.
Q5. Is a Registered Agent required for an LLC?
Yes, a registered agent is required for an LLC in the UAE. You can contact Shuraa business setup for the same.
Q6. Does forming an LLC offer any tax benefits in Dubai?
Yes, forming an LLC in Dubai can provide tax benefits, such as no corporate tax on most business activities and 100% foreign ownership in certain free zones.
Q7. What types of licenses can an LLC hold in the UAE?
Depending on business activities, an LLC can hold various licenses, including commercial, professional, Industrial, and tourism.
Q8. Can foreigners start an LLC company in Dubai?
Yes, foreigners can fully own an LLC in Dubai without a local partner, per the new regulations introduced recently.
Q9. How long does it take to register an LLC company in Dubai?
The registration process for an LLC in Dubai typically takes about 1 to 2 weeks, depending on the submission of documents and the approval process.
Q10. Why LLC formation is important in the UAE?
LLCs provide personal liability protection to their owners (shareholders). This means that the shareholders’ personal assets are protected from the company’s debts and liabilities.
