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

Starting a business in Dubai can be exciting. However, if you’ve never done it before, the process can feel overwhelming. Don’t worry! We’ve broken it down into simple steps to help you understand exactly what to do when setting up a Limited Liability Company (LLC) in Dubai.

Step 1: Decide What Your Business Will Do

The first thing you need to do is figure out what kind of work your company will be doing. Are you going to be trading goods, offering services, running a retail store, or something else? Dubai allows over 2,000 types of business activities, so you’ll want to pick the one that matches your idea. This decision will affect the kind of business license you need.

Step 2: Choose Where You Want to Set Up

You can open your company in one of three places:

• Mainland (lets you do business across the UAE),
• Free zone (offers full ownership and tax benefits),
• Offshore (for international operations).

Each location has different rules, so it’s important to choose one that fits your needs. If you’re unsure, our experts at Dubiz can help you decide.

Step 3: Pick a Business Name

You’ll need to come up with a name for your company. It should be unique, professional, and follow Dubai’s naming rules. You can suggest a few names, and the authorities will approve one that meets the guidelines.

Step 4: Get Initial Approval

Before doing anything else, you need a green signal from the government. This is called Initial Approval, and it tells you that Dubai has no objections to your business idea. Once you have this, you can move forward with the legal process.

Step 5: Prepare the Required Documents

Now, it’s time to get your paperwork ready. One of the most important documents is the Memorandum of Association (MoA) which outlines your business details and must be signed and approved officially. If your license type requires it, you might also need a Local Service Agent agreement.

Step 6: Get a Local Sponsor (if required)

In some cases, especially on the mainland, you might need a UAE national as a local sponsor or partner. However, many business types now allow 100% foreign ownership, especially in free zones. We can help you understand if a sponsor is necessary for your setup.

Step 7: Rent Office Space

Every mainland company needs to have a physical office in Dubai. You’ll need to sign a rental agreement (called Ejari) as proof of your address. Free zones may give you the option to use shared or virtual office spaces, depending on your budget and needs.

Step 8: Apply for Extra Approvals (if needed)

Depending on what your business does, you might need approvals from other government departments. For example, if you’re opening a healthcare or food business, you’ll need clearance from the health or food authority.

Step 9: Apply for Your Trade License

Now comes the big step: getting your trade license. You’ll submit all the documents and fees to the Department of Economic Development (DED) or the free zone authority. Once everything is checked and approved, you’ll receive your license to officially operate your business.

Step 10: Open a Business Bank Account

After you get your trade license, you’ll need to open a business bank account to manage your company’s money. Banks will ask for your license, ID documents, and other company papers. You can choose from local or international banks in Dubai.

Step 11: Apply for Visas

Finally, you’ll need to handle visa applications for yourself, your family members, and your employees (if any). This involves medical tests and submitting documents like passport copies, photos, and application forms.

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.