If you want to start a business in Dubai, know you’ve picked the perfect city. With its strategic location and favorable business environment, several business owners consider Dubai, UAE, as an attractive spot
for doing business across three continents: Europe, Asia, and Africa.
One of the most common forms of business setup in Dubai is a Limited Liability Company (LLC). LLC company formation in Dubai is straightforward if you seek guidance from an expert business consultant in Dubai, like Corporate Business Services (CBS).
In this article, we will be taking you through the 5 simple steps to set up a limited liability company in Dubai, UAE.
Overview of LLC Company Formation in Dubai
An LLC company formation in Dubai, UAE, recommends 2 to 50 shareholders to have limited liability of their invested capital of the company.
In a recent amendment of the UAE business regulations, 100% foreign ownership is possible when starting an LLC in Dubai, UAE. However, depending on your business activity, you may need a local sponsor (UAE national) who will own 51% of the company’s equity.
Benefits of Starting an LLC in Dubai, UAE
Company formation in Dubai, UAE, offers several benefits to investors and entrepreneurs when they set up an LLC company in Dubai mainland.
Some of the benefits include:
- Tax Benefits: Dubai, UAE is known for its tax-friendly policy. LLC company formation in Dubai offers 0% of all personal income taxes.
- Fast Business Setup Procedure: Typically, it takes up to 7 working days to setup an LLC in Dubai. However, you might face delays that might be caused by not following standard procedures.
- Range of Business Activities: An LLC business structure in Dubai allows a single license to carry a diverse range of business activities.
- Unrestricted Market Access: LLC company formation in Dubai mainland gives you the opportunity to do business anywhere in the UAE without restrictions.
How to Setup an LLC Company in Dubai
You will need to get a business license in Dubai from the Department of Economy and Tourism (DET) if you want to register an LLC company.
Dubai offers six main categories of business licenses. The business activities you intend to carry will determine the type of business license you will need in Dubai.
This related article gives a proper understanding of the Types of business licenses in UAE.
Below are the 5 main steps for LLC company formation in Dubai:
- Choose a business activity: Choose the correct business activity you intend to provide in Dubai. This will determine the type of business license you will need.
- Choose a unique trade name: You will need to come up with a unique name for your company, after which you must obtain a trade name certificate from DET.
- Compile and submit all required documents: With the help of an expert business advisor, arrange and submit all necessary documents needed for starting an LLC in Dubai to the relevant authority.
- Obtain Initial approvals: Obtain initial approval from the relevant authority to apply for your business license. You may also need special approvals from third-party agencies based on your business activity.
- Pay the license fee and obtain your business license: Once you acquire the approval to proceed with your application, you will need to pay for the license fee and any other extra charges.
After all payment has been made, your business license will be issued to you by the Department of Economy and Tourism (DET).
Get Your Business License in Dubai, UAE with CBS
Corporate Business Services (CBS) expert business advisors in Dubai can guide you through the whole process of setting up your Limited Liability Company in Dubai.
You can rely on us for a seamless and cost-effective business setup in Dubai and other business consultancy services in the UAE, such as corporate tax and VAT registration services, visa applications, accounting and bookkeeping services, and more.
Frequently Ask Questions
The cost of LLC company formation in Dubai varies depending on your business needs. Some of the factors influencing your business setup cost in Dubai include:
Type of business activity
Number of shareholders required
Number of visas required
Office space requirement
An application form obtained from DET
Passport and visa copies of all shareholders
Passport copy of local sponsor ( if needed)
Memorandum of Association
Trade name certificate
No Objection Certificate (NOC)(if required)
Tenancy contract of office (Ejari)
In accordance with the new tax law in UAE, all taxable persons (companies) must register for corporate tax in UAE.
However, you only pay the 9% corporate tax rate when your annual profit exceeds 375,000 Dhs.