Opening an LLC in Dubai: Costs, Requirements, and Benefits
Opening an LLC in Dubai is one of the most popular choices for entrepreneurs considering business setup UAE. Thanks to its strategic location, business-friendly environment, and tax benefits, Dubai is an ideal destination to launch your company.
What is an LLC in Dubai?
A Limited Liability Company (LLC) is a flexible and commonly used business structure in Dubai. It allows foreign investors to legally operate in the UAE mainland, including doing business with other companies and government entities. An LLC requires a minimum of 2 and a maximum of 50 shareholders, each liable only to the extent of their shares.
Advantages of LLC Business Setup UAE
Choosing to open an LLC offers several advantages to investors. Here are some key benefits:
- 100% Foreign Ownership: As per recent changes in UAE laws, many activities now allow full foreign ownership.
- Access to Local Market: LLCs can trade directly within the UAE mainland without restrictions.
- Multiple Visas: LLCs provide the opportunity to issue multiple employment and investor visas.
- Flexibility: Businesses can select from a wide range of commercial activities.
- Repatriation of Profits: 100% repatriation of capital and profits is permitted.
Key Requirements for LLC Business Setup UAE
Although setting up a business is straightforward, it’s essential to understand the core requirements. The following are necessary for establishing an LLC in Dubai:
- Trade Name Approval: Choosing a unique company name that complies with UAE regulations.
- Local Address: The company must have a valid commercial office in Dubai.
- Business Activity Selection: Choosing an activity approved by the Department of Economic Development (DED).
- Memorandum of Association (MOA): Must be notarised between shareholders.
- Initial Approval: A no-objection certificate issued by the DED.
For a more detailed breakdown of required steps, check our guide on how to establish a business in Dubai.
Documents Needed to Open an LLC in Dubai
Documentation is an important part of the LLC formation process. Below are essential documents required:
- Passport copies of all shareholders and managers
- Visa copies or entry stamp pages
- Copy of Emirates ID for UAE residents
- No Objection Certificate (NOC), if applicable
- Notarised MOA and lease agreement
LLC Setup Costs in Dubai
The total cost to set up an LLC in Dubai varies depending on the business activity, office location, and license type. Here’s a general breakdown of the costs involved:
- Trade Name Reservation: AED 600 to AED 1,000
- Initial Approval: AED 100 to AED 300
- License Fee: AED 10,000 to AED 15,000 annually
- Office Rent: AED 15,000 to AED 50,000, based on location and size
- Notarization and Legal Translation: AED 1,000 to AED 3,000
Keep in mind that these figures are approximate and subject to change. For updated information, visit the UAE Government Portal.
Step-by-Step Guide to Start a Company in UAE as an LLC
To streamline your business setup UAE journey and reduce potential delays, follow the steps below:
1. Define Your Business Activity
Select a business activity from the DED’s approved list. You can choose multiple activities under a single license, depending on the sector.
2. Reserve a Trade Name
Reserve your LLC’s trade name through the DED. Make sure it aligns with UAE’s naming conventions and is not already registered.
3. Apply for Initial Approvals
The DED provides initial approvals that confirm there are no objections to you starting a business in Dubai.
4. Draft and Notarize the MOA
Outline shareholder roles, capital share, and business activities. The document must be drafted and notarized at a Dubai court.
5. Rent a Commercial Space
Secure a lease agreement and obtain a Ejari certificate. This step is mandatory for obtaining a business license.
6. Final Submission and License Issuance
Submit all documents and approvals to the DED for final license issuance. Once approved, you’ll receive your trade license and can begin operations.
Comparing LLC with Other Business Structures
While LLCs are ideal for many entrepreneurs, it’s beneficial to compare it to other models. Here’s a quick comparison:
| Type | Ownership | Main Feature |
|---|---|---|
| LLC | Up to 100% foreign ownership (based on activity) | Mainland business access |
| Free Zone Company | 100% foreign ownership | Only allowed to operate within Free Zone or overseas |
| Branch Office | No separate legal identity | Acts as an extension of a parent company |
Licensing Types Available for LLCs
Depending on the chosen activity, your LLC may require one of these licenses:
- Commercial License: For trading and general business activities
- Professional License: For service-based activities
- Industrial License: For manufacturing-related operations
To choose the right license type, check our comparison on commercial vs professional vs industrial trade licenses.
How Long Does LLC Formation Take?
In general, forming an LLC in Dubai takes around 7 to 14 working days when all documents are prepared and approvals are timely.
Common Mistakes to Avoid
Here are mistakes many first-time business owners make when launching in Dubai:
- Choosing the wrong business activity or license type
- Ignoring legalities related to office lease agreements
- Inaccurate documentation or missing approvals
- Not understanding local labor laws and visa requirements
Read our comprehensive guide on common mistakes when applying for licenses in Dubai to avoid these pitfalls.
Final Thoughts on Business Setup UAE via LLC
Opening an LLC in Dubai is a rewarding and strategic step for any entrepreneur planning business setup UAE. It grants access to a thriving economy, investor-friendly policies, and long-term growth opportunities.
Make sure you understand all regulatory steps, prepare the appropriate documents, and consult professional business setup consultants to streamline your journey.
Whether you’re a first-time investor or looking to expand, forming an LLC can help turn your vision into a sustainable and profitable operation in the UAE.
