LLC Company Formation in Dubai
Dubai’s booming economy and pro-business policies make it a prime destination for starting a company. In fact, over 30,000 new LLCs were established in Dubai in 2024 alone, highlighting how popular the LLC company setup in Dubai has become.
If you’re a local entrepreneur, foreign investor, SME owner, or solo professional looking to launch an LLC in the UAE, this guide is for you.
We’ll walk you through LLC company formation in Dubai, covering what an LLC is, its benefits, the step-by-step setup process, costs, and required documents.
By the end, you’ll have a clear roadmap to start your own business in Dubai – and understand how Corporate Business Services (CBS) can help make it hassle-free.
What is an LLC (Limited Liability Company) in Dubai?
An LLC, or Limited Liability Company, is one of the most common business types in Dubai. It’s a legal structure that protects the personal assets of the owners, meaning your liability for business debts is limited to your share in the company’s capital.
In simple terms, if the company faces financial trouble, your personal assets (home, savings, etc.) are protected – you only stand to lose what you invested in the business.
This makes LLCs a popular choice for entrepreneurs who want growth potential without risking everything.
In Dubai, an LLC can be established by a single owner or multiple owners (up to 50 shareholders). Traditionally, setting up an LLC in Dubai mainland required partnering with a UAE national holding 51% ownership.
However, since June 2021 the UAE allows 100% foreign ownership in many sectors, eliminating the mandatory local sponsor for a wide range of business activities. This regulatory change has made this business structure even more attractive to foreign investors.
(Do note that a few strategic industries still may require an Emirati partner or agent, but the list of exempt sectors is extensive.)
Overall, an LLC offers a blend of flexibility, security, and access. No wonder majority of businesses chooses an LLC as the go-to business structure for setting up in Dubai.
Benefits of LLC Company Formation in Dubai
Why choose an LLC company formation in Dubai over other business setups?
Here are some of the most compelling benefits that draw entrepreneurs and SMEs to the LLC structure:
- Limited Liability Protection: As the name suggests, your liability is limited. Shareholders’ personal assets are shielded from business liabilities and debts.
This gives peace of mind, as you won’t be personally on the hook beyond your investment in the company.
- 100% Foreign Ownership (New Laws): Thanks to updated UAE laws, foreign investors can own 100% of an LLC in Dubai in most industries.
This means you retain full control of your business while still operating on the Dubai mainland.
- Access to the Local UAE Market: An LLC lets you do business anywhere in Dubai and across the UAE mainland.
This local market access is a big advantage over free zone companies, which generally cannot sell in the mainland UAE without going through distributors.
- Favourable Tax Environment: The UAE offers one of the most tax-friendly environments in the world. Dubai imposes no personal income tax on individuals, and until recently there was 0% corporate tax on company profits.
(As of 2023, a 9% corporate tax applies only on business profits exceeding AED 375,000, so small-to-medium companies often still pay 0%.). There is also no capital gains tax or withholding tax.
- Wide Range of Business Activities: Dubai LLCs are versatile – you can engage in a broad array of business activities under one license, from trading and retail to manufacturing or services.
You can can also easily expand or add branches in other Emirates, making regional growth straightforward.
- No Minimum Capital Requirement: Unlike some jurisdictions that require a hefty upfront capital deposit, Dubai does not enforce a minimum paid-up capital for LLCs in practice.
LLC Business Setup in Dubai: Step-by-Step Process
Setting up an LLC company in Dubai may seem complex, but it can be straightforward if you know the steps (and get the right guidance).
Here’s a step-by-step breakdown of LLC business setup in Dubai:
1.Choose Your Business Activity:
Decide what business (or businesses) you will conduct. Dubai’s Department of Economy and Tourism (formerly DED) has an official list of thousands of permissible activities – from consulting, marketing, and real estate to import-export, restaurants, manufacturing, and more.
Clearly identifying your business activity is crucial because it determines the type of license you need and whether any special approvals are required.
Pro Tip: Research the market demand for your chosen field and ensure it’s on the allowed list. If unsure, CBS’s business setup consultants can help you match your idea to the correct activity category.
2.Decide on Mainland vs. Free Zone:
Determine where you want to set up – on the Dubai mainland or in a free zone.
- A Mainland Business Setup in Dubai (licensed by Dubai’s DET) allows you to do business anywhere in the UAE.
- A Free Zone Business Setup in Dubai (often called an FZ-LLC) is set up within a designated free trade zone (like DMCC, JAFZA, IFZA etc.).
3.Reserve a Trade Name:
Pick a unique name for your company and get it approved by the authorities.
Once approved, the trade name is typically reserved for you for a set period (often 6 months).
4.Prepare the Required Documents:
Documentation is the backbone of the company formation process. Having your paperwork in order will save you time down the line.
Key documents and information you’ll need include:
- Passport copies of all shareholders (and residence visas or Emirates ID copies if any shareholders are UAE residents).
- Your approved trade name, chosen business activity, and the shareholding structure (percentage of shares each partner will hold).
- A Memorandum of Association (MOA) which is a legal document outlining the company’s structure, objectives, capital, and share distribution.
- A copy of a tenancy contract for your office / Lease Agreement (Ejari) certificate.
- Other Papers: Some cases require NOCs (No Objection Certificates) – for example, if a current UAE resident is going to be a shareholder and is employed elsewhere, they might need an NOC from their employer.
Note: Navigating the paperwork can be tedious. Many entrepreneurs choose to work with business setup consultants (like CBS) who prepare and file all these documents for you, ensuring nothing is missing. This can prevent delays that happen due to documentation errors.
5.Apply for Initial Approval:
With your trade name reserved and documents ready, the next step is to submit an application for initial approval to the authorities such as the DET for mainland company setup in Dubai or your chosen freezone authority for freezone business setup.
6.Lease an Office Space:
Before you can get the final business license in Dubai, you must secure a physical office location in Dubai (this is mandatory for mainland companies).
Once you sign a lease agreement, you’ll get the Ejari certificate. This document will be required when you finalize the license.
7.Obtain Additional Approvals (if needed):
Depending on your business activity, there might be special approvals required from other government bodies.
For instance, if you are setting up a healthcare clinic, you need approval from the Dubai Health Authority (DHA); if it’s a school, the Knowledge and Human Development Authority (KHDA) must approve, etc.
8.Pay the License Fee and Get Your Trade License:
This is the big moment – once all above steps are completed, you will submit the final application to the DET (or free zone authority) to issue the LLC trade license.
This involves paying the required license fees and registration fees to the government. The DED will review all documents one more time, ensure the MOA and office lease are in place, and then issue your Dubai LLC trade license.
Along with the license, you typically receive your company’s Certificate of Registration (incorporation) and the Dubai Chamber of Commerce registration.
Congratulations – your company is now an officially registered in Dubai!
9.Open a Corporate Bank Account and Manage Visas:
With your trade license in hand, you can proceed to post-formation tasks to kickstart operations:
- Open a company bank account: Dubai has a multitude of local and international banks.
You will need to choose a suitable bank in Dubai to open a corporate bank account that enables you to make and receive payments and is essential for running your business.
- Visa processing: If you (or your employees) need UAE residence visas under the company, you can now apply for those through the immigration department (GDRFA in Dubai).
The number of visas you can get will depend on your office space and the nature of your business. Typically, you’d first apply for an establishment immigration card for your company, and then you can sponsor visas (e.g. investor visa for the owner, employment visas for staff).
Each visa involves medical tests, Emirates ID, etc., which can be handled with the help of PRO services.
Cost of LLC Company Setup in Dubai
One of the first questions entrepreneurs ask is: “How much does it cost to form an LLC in Dubai?” The total cost can vary widely based on your business choices, but here’s an overview of the main expenses:
- Trade License & Registration Fees: These are the government charges to issue your LLC trade license and register the company.
The license fee in Dubai starts around AED 15,000 to AED 18,500 for a standard LLC and goes up depending on your business activity and visa quota.
- Local Sponsor or Service Agent Fee: If your setup requires a local sponsor (Emirati partner) on paper, you will typically pay them an annual sponsor fee.
This is a privately agreed amount and can range widely – often around AED 10,000 to AED 25,000+ per year depending on the individual and the business size.
(If no local sponsor is needed due to 100% ownership, you save this cost! Instead, you might only pay a nominal fee to a local service agent if required for administrative purposes.)
- Office Rent: Budget for the cost of renting your office or shop space.
Dubai commercial rents can vary from AED 15,000/year for a flexi-desk in a free zone or distant area, up to AED 50,000+ for a small office in prime city locations (and much higher for retail stores in malls or large offices).
- Visa Costs: For each UAE residency visa under your company (whether for owners or employees), there will be costs for the employment entry permit, medical test, Emirates ID, visa stamping, and related processing.
An investor (owner) visa might cost roughly AED 4,000 – 5,000, and employee visas can be AED 5,000+ each including fees and deposits.
- Miscellaneous Admin Fees: During the process you might encounter smaller costs such as typing center fees (for form applications), notarization charges for MOA and other documents, and attestation fees if you are using documents from abroad.
- Consultancy/PRO Service Fees (Optional): If you engage a business setup firm like CBS to handle the process, they will charge a professional fee.
This can actually be cost-effective, as they often bundle government fees and offer packages. Their expertise can prevent costly mistakes or delays.
Typically, consultants may charge a service fee from a few thousand dirhams upward depending on the scope of work (license application, visas, bank account assistance, etc.).
Tip: Always get a detailed cost breakdown before starting. CBS offers transparent cost estimates upfront, so you know exactly what you’ll pay for each step and there are no surprise fees. Proper financial planning ensures your new LLC is set up for success from day one.
Starting Your LLC Company with CBS – Expert Support Every Step of the Way
While it’s entirely possible to navigate the LLC setup process yourself, many entrepreneurs prefer to work with professional business setup consultants to save time and avoid pitfalls.
Corporate Business Services (CBS) is a leading business consultancy in the UAE, known for its expertise in company formation and corporate services.
At CBS, we pride ourselves on being professional yet approachable. We’ve helped thousands of entrepreneurs (local and foreign) successfully launch their companies in Dubai.
When you’re ready to take the leap, contact CBS for a free consultation.
Our friendly business advisors will walk you through the requirements and create a customized plan for your Dubai company formation.
Have more questions about LLC company setup in Dubai or ready to proceed with your business plan?
Contact Corporate Business Services (CBS) for expert help. We’re here to provide clarification, guidance, and end-to-end support to turn your Dubai business dream into reality.
Let’s get your business started!
Frequently Asked Questions (FAQs)
How long does it take to register an LLC in Dubai?
On average, the timeline is about 1 to 3 weeks for most straightforward cases.
If your business needs extra approvals (say from a ministry or regulator), it could extend the timeframe a bit. Also, delays can occur if documents are missing or need revision.
Working with a consultant can speed it up – at CBS, we’ve had some clients get their license in as fast as one week when everything was in order.
To be safe, plan for about a month from start to finish, though it can certainly be faster.
What are the taxes for an LLC in Dubai?
Dubai (and the UAE in general) has a very tax-light regime. There is no personal income tax on salaries or business profits for individuals.
For companies, the UAE introduced a 9% corporate tax from 2023 on net profits above AED 375,000. This means if your LLC’s profits are under that threshold, you effectively pay 0% corporate tax; if above, you pay 9% on the portion above 375k.
Additionally, there’s no VAT on most new companies except if your business is selling goods/services and you cross the turnover threshold of AED 375,000 for VAT – then you’d register for 5% VAT like any business.
There are also no taxes on capital gains or dividends in the UAE. So, for most entrepreneurs, Dubai remains a low-tax environment, especially compared to other countries.
