Dubai is one of the most business-friendly destinations in the world, attracting entrepreneurs and investors from across the globe. Setting up a Limited Liability Company (LLC) in Dubai is a popular choice due to its flexibility, legal protections, and access to both local and international markets. This guide covers everything you need to know about LLC company formation in Dubai.

What is an LLC in Dubai?

A Limited Liability Company (LLC) is a business structure where the liability of shareholders is limited to their investment in the company. It is the most common type of business entity in the UAE and allows for a broad range of business activities.

Benefits of Setting Up an LLC in Dubai

• 100% Ownership for Foreign Investors: Under recent reforms, foreign investors can now own 100% of their business in most sectors without the need for a local sponsor.
• Access to the Local Market: Unlike free zone companies, an LLC can conduct business anywhere in the UAE.
• Limited Liability Protection: Shareholders are only liable for the company’s debts up to the value of their shares.
• Easy Visa Processing: An LLC can sponsor investor and employee visas.
• Strong Legal Framework: Dubai offers a stable and transparent legal system that supports business growth.

Steps to LLC Company Formation in Dubai

Step 1: Choose Your Business Activity

The first step in forming an LLC is selecting a business activity from the list approved by the Department of Economic Development (DED).

Step 2: Select a Trade Name

Your trade name should be unique and comply with UAE naming regulations. It must not include offensive language or references to religious or political groups.

Step 3: Apply for Initial Approval

Submit an application to the DED to get initial approval for your business activity and trade name.

Step 4: Draft the Memorandum of Association (MOA)

The MOA outlines the ownership structure, business activities, and responsibilities of shareholders. It must be notarized by a UAE-registered notary.

Step 5: Choose a Business Location

An LLC must have a physical office space in Dubai. You need to provide a tenancy contract registered with Ejari.

Step 6: Obtain the Trade License

Once all documents are in place, submit them to the DED and obtain your LLC trade license.

Step 7: Register for a Corporate Bank Account & Visas

After obtaining your license, open a corporate bank account and apply for investor and employee visas.

Cost of LLC Company Formation in Dubai

The cost varies based on factors such as business activity, office location, and government fees. On average, LLC setup costs range from AED 15,000 to AED 50,000.

Conclusion

Setting up an LLC in Dubai provides entrepreneurs with a strong foundation for business success. With its strategic location, business-friendly policies, and global connectivity, Dubai remains a top choice for company formation. If you need expert assistance in forming your LLC, our business setup specialists are here to help.