LLC Company Formation in Dubai – Complete Guide 2025

Dubai stands as UAE’s most affluent and muti-cultural city. The city has earned a reputation of not just being a luxurious haven but also a top business destination. Many entrepreneurs from across the globe have made the city their home. One of the famous forms of business setup for many of them has been LLC company formation in Dubai, UAE. With startup-friendly laws, businesses here can set up LLC companies in the mainland, offshore, or free zones. Moreover, there are over 2000 activities to choose from for business setup in Dubai.

This blog provides comprehensive information on LLC company formation in Dubai, covering the process, requirements, and associated costs.

Overview of LLC in Dubai,UAE

Dubai, with its robust economy, holds a significant position as an attractive avenue for businesses. According to the Dubai Chamber of Commerce, 51,000 new companies joined as members during first 9 months of 2024, marking a year-over-year growth of 4%. Thus, the city is perfect destination for anyone looking to start their limited liability company.

A limited liability company (LLC) is a type of legal business structure in UAE. For expats and foreigners planning to start a business in Dubai, an LLC, or limited liability company, is often the top choice and the simplest option available. This legal structure requires a minimum of two and a maximum of fifty shareholders. Their liability is restricted to the number of shares they own in the company’s capital.

One of the major advantages of limited liability company formation in Dubai is that it shields its owners/shareholders from personal responsibility for the business’s debts and commitments. Thus, ensuring full protection under Dubai’s corporate regulations.

Benefits of LLC company formation in Dubai

LLC is one of the most popular choices for business structures in UAE. LLC company setup in Dubai offers wide range of benefits including:

1. Limited liability of each shareholder:

The liability of each shareholder is limited to their respective shares in the company’s capital. Therefore, it provides protection to the investor’s personal assets.

2. Flexibility in shareholder count:

LLCs can have up a minimum of 2 shareholders which can go up to 50. Also, these shareholders can belong to different countries of origin.

3. No minimum capital requirements:

LLC company formation in Dubai no longer needs minimum capital, making it more accessible. The investors only need to specify the value in Company Articles.

4. Tax benefits:

Dubai offers unrivalled tax environment for businesses. There is 0% personal income tax rate and very less corporate tax rate for those earning beyond a threshold. Those who earn below the threshold do not even have to pay any corporate tax.

5. Range of permissible business activities:

DED offers a list of over 2,000 options that can pursued by the entrepreneurs. These activities belong to diverse industries covering finance, health, IT, research, fashion, and more.

6. Residency visa option:

LLC owners get the opportunity to apply for multiple visas for family members and unlimited work visas for their employees. Shareholders can apply for the golden visa too, on meeting the specific eligibility.

7. Flexible office location:

Entrepreneurs can select any legal location for their business. Numerous alternatives exist for leasing or acquiring top-notch office space.

8. 100% ownership:

Most of the business activities on mainland do not need partnering with the local sponsors anymore. Also, freezones provide complete ownership. Which means foreign entrepreneurs can own their businesses completely.

Type of trade licenses for LLC in Dubai

Limited Liability Company in Dubai get the opportunity to choose from various activities. There are different types of licenses that can obtained based on the activity chosen. Broader types of trade licenses available for LLC company formation in Dubai:

1. Commercial license:

It covers activities like buying/selling/trading of goods and services, import export activities, logistics, real estate, retail, etc.

2. Industrial license:

It covers manufacturing and industrial activities like food processing, textile and food production, etc.

3. Professional license:

This license is suitable for those looking to offer services based on their expertise, qualifications and skills, such as consultants.

4. Tourism license:

It covers tourism related activities like travel agency, tourist guide, guest houses and accommodation services and so on.

5. Agricultural license:

It covers agri-based activities such as farming, greenhouse installation, etc.

For your LLC company setup Dubai, you must choose the appropriate business license. In case you need any assistance in doing so, you can contact our business setup experts.

How to open LLC company in Dubai, UAE: Step-by-step guide

In order to ensure an error-free and smooth process, you must be aware of the legal formalities and requirements involved in Dubai LLC company registration. Following are the steps to be followed for LLC company formation in Dubai:

Step 1 – Determine your business activities:

Start by deciding the operations and activities your business will undertake, as they determine the type of license you will need. UAE offers over 2000 activities for LLCs in sectors like trade, tourism, retail, and education. You must do proper market research and check the potential of your business idea.

Step 2 – Choose a business location:

After deciding on your business activities, the next step is selecting the location. In Dubai, you can establish your LLC company in the mainland, free zone, or offshore. Each zone has its own laws and regulations for setup and permitted activities.

Dubiz experts can assist you in choosing the best location for your business according to your needs and requirements.

Step 3 – Select and register your trade name:

You must then select and register a trendy and unique name for your business. While selecting the name, make sure it follows the rules and conventions of the UAE. You can propose several names for your company, taking into account its nature, operations, and legal requirements.

Step 4 – Apply for initial approvals:

Next, you need to obtain an Initial Approval Certificate from the Department of Economic Development (DED) for your business. This certificate serves as proof that the UAE government has no objections against your business operations in the city. After obtaining the NOC, you can proceed with the next steps of your LLC company formation in Dubai.

Step 5 – Prepare essential documents:

Once you have obtained the necessary approvals, you must complete all required documentation, which includes drafting and signing the Memorandum of Association (MoA). The MoA is essential to start your LLC company in Dubai and must be duly notarized. Additionally, for a professional service license, you will need to have a Local Service Agent (LSA) agreement in place (only if needed).

Step 6 – Find a local sponsor, if needed:

Whether you need a local sponsor in Dubai varies based on your business’s nature and the industry you plan to enter. In Dubai’s mainland, some sectors require a local sponsor, while others allow full foreign ownership. LLC company setup in Dubai free zones enable you to have 100% ownership without the need for a local sponsor.

Step 7 – Secure an office space:

If you are starting a company in Dubai mainland, having a physical office space is a must. You will need to rent a suitable office and secure an “Ejari” agreement, which is a legal contract with the real estate agency. Freezones can offer more flexibility by allowing virtual office options.

Step 8 – Get additional approvals:

Certain business operations in Dubai may require additional approvals from relevant authorities. For instance, health-related ventures might need clearance from local health departments.

Step 9 – Obtain your trade license:

Once all the approvals are in place, you must then go ahead with business license application. You can apply for your trade license by submitting all the necessary documents and fees to the DED or relevant freezone authority. After successful submission and verification of your documents, you will receive your business license.

Step 10 – Get a corporate bank account:

After you have secured your license and documents back, you should open a business bank account for your business to manage the finances. Dubai provides options for both domestic and international banks. You will need to furnish documents such as your business license, shareholders’ passport copies, and any other paperwork as requested by the bank.

Step 11 – Visa application:

Finally, there is immigration and visa processing. You can apply for visas for yourself, your family, and your employees. This involves medical testing and submitting passport copies, photos, and other required documents.

Documents required to start an LLC in Dubai

Generally, you will need the following documents for LLC company formation in Dubai:

• Application form for the license
• Business plan
• Bank statements
• Several options for the company name reservation
• Shareholders’ passport copies
• Local sponsor’s passport copy
• Emirates ID copy (if applicable)
• Office space lease agreement
• Duly attested memorandum of association
• Receipt for initial approval
• No Objection Certificate (NOC) from the local sponsor or partner (if needed)
• Approvals from relevant government entities, if necessary
• Any extra documents requested by DED

Please note that additional documents may be needed or asked for by relevant authorities for LLC formation in Dubai. Please contact our experts at Dubiz Business Setup to determine your exact requirements for ensuring compliance.

Cost of forming an LLC in Dubai

LLC formation cost in Dubai (including 1 Visa) is AED 28,000*. LLC License cost in Dubai usually starts from AED 18,500*, with license renewal cost around AED 13,500*.

The cost for LLC company formation Dubai may vary depending on factors such as the number of visas requested, the chosen medical insurance, additional approvals from relevant government authorities, and the use of a foreign trade name.

To know your exact cost, we advise you to get in touch with our experts.

Get your LLC formed with DUBIZ!

LLC company formation in Dubai requires a deep understanding of the UAE’s business landscape. But you do not need to worry. Our experts at Dubiz Business Setup can guide you through the entire process, educating you about the requirements and intricacies involved. We can assist you with every step, including the paperwork, company registration in UAE, visa application, and more. All you need to do is partner with us and take a step towards success in Dubai’s thriving markets.

Let us do it together!

Contact Dubiz Business Setup today at +971563695485 or WhatsApp us at +971563695485. You can also drop an email at info@dubiz.co for any inquiries.

Frequently Asked Questions (FAQs)

Q: What does LLC mean in the UAE?

A: A limited liability company (LLC) is a type of legal structure of business. This legal structure requires a minimum of two and a maximum of fifty shareholders. Each shareholder’s liability is limited to the number of shares they own in the company’s capital.

Q: How much does it cost to form an LLC in Dubai?

A: The cost of LLC company formation in Dubai, including one visa, is around AED 28,000*. The Dubai LLC license cost starts from AED 18,500*, and renewal is about AED 13,500*.

Q: What types of licenses can LLC hold in Dubai?

A: An LLC in Dubai can hold a commercial, professional, industrial, tourism or an agricultural license. It depends on the activities pursued.

Q: How to get an LLC license in Dubai?

A: To acquire an LLC license in Dubai from the Department of Economic Development (DED), individuals must submit the necessary documentation to DED and pay the requisite fee.

Q: How many members can be there in an LLC Company in Dubai?

A: In Dubai, an LLC, or Limited Liability Company, is permitted to have a minimum of 2 partners and a maximum of 50 partners.