Dubai LLC Company Formation – Step-By-Step Guide

By  //  January 25, 2023

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Limited Liability Company (LLC) formation in Dubai is an excellent solution for many international business owners.

There may be many benefits, including tax reduction and asset preservation. However, the only way to quickly and easily create an LLC in Dubai is with experienced, qualified advisors.

Dubai is a central hub for international Trade and finance. Before starting an LLC in Dubai, it’s essential to understand the procedures and requirements.

An Outline of LLC Company Formation in Dubai

The creation of LLC companies is familiar in Dubai. One or more shareholders can form a Limited Liability Company, and there is no restriction on the number of shareholders.

Each shareholder’s liability is limited to the company’s investment value. An LLC is a legal entity that can operate anywhere in the UAE and GCC.

You will need a DED-licensed corporation and a local partner if your business requires you to transact with local businesses on the UAE mainland. However, per the new regulation, the need for a local partner is optional now in Dubai. The constraints on foreign ownership worry many foreign investors, who feel uneasy about handing over their business management to a local partner.

In order to ease these worries, Sovereign developed the “corporate shareholder” model, which enables clients to successfully keep 100% ownership control of their businesses while remaining in complete compliance with UAE corporation legislation.

Essential Features of LLC Company Setup Dubai

Some significant characteristics of a limited liability company formation in Dubai are discussed below:

Enhanced financial services and straightforward day-to-day procedures.

Trading may occur on both domestic and international marketplaces.

LLC subsidiaries are allowed to incorporate to set up shop in other emirates.

For any commercial endeavor, an LLC business can be established in Dubai.

The profit and loss and the firm’s shares might be protected by a separate agreement between the shareholders, signed in the presence of two witnesses.

Some options could work for the workplace space.

There are no restrictions on the number of visas obtained.

Opening a business or foreign bank account in the UAE is simple, as is getting credit.

LLC creation offers the best opportunities to gain from the UAE economy.

Possession of real estate is unrestricted.

The Benefits of LLC Formation in Dubai

An LLC can be created by any incorporated person, business owner, or investor prepared to invest and contribute funds to launch commercial operations in Dubai. The LLC Setup in Dubai is one of the most common ways for immigrants, business owners, ex-pats, and local investors to start a company. The benefits of using one are broken down in the following list.

  • Accessibility to the Market

Since restrictions exist on utilizing an LLC to enter the Dubai Mainland market, the customer base gains; learn more about how to start a business in Dubai mainland if you wish to open one.

  • Incredible Tax Breaks

The tax advantages of owning an LLC are significant for businesses aiming to grow in Dubai.

  • Easy Management Process

An LLC is simple to run because of its apparent organizational structure.

  • Geography does not Restrict Trade

Where LLC company investors can set up shop in the UAE is not subject to any restrictions from the government of the Emirate.

  • Numerous Commercial Activities

Unlike other business structures, LLCs allow you to engage in various economic activities. For example, business owners can apply for a license to engage in any of the many different business activities the DED has permitted.

  • Cost-effective Options

Forming an LLC is one of Dubai’s more affordable business models.

How to Set up a Limited Liability Company in Dubai

The Department of Economic Development governs Dubai LLC company formation. These are the steps:

1. Select a trading name

Pick a name that fits your company well and is both distinctive and recognizable.

2. Decide on a location

Select a location that works for you based on the nature of your business. A physical office or warehouse is required to conduct business operations.

3. Find a regional sponsor

Gather all necessary paperwork, then deliver it to the Department of Economic Development (DED) along with the fully completed application.

5. Acquire a license and pay any fees

The appropriate authorities should be contacted to obtain a trade license, a Memorandum of Association (MoA), share certificates, a tenancy agreement, a certificate of incorporation, visas, labor cards, and other legal documents.

Required Documents for LLC Formation in Dubai

Each document must be notarized and attested by the UAE consulate and the applicant’s home country. The notarization process requires enough time, so it should be completed as soon as a choice on business setup in Dubai has been made. Here is the complete list of the required documents:

  • Duly filled registration application form
  • Passport copies of all shareholders and managers of the company
  • Passport copy of the local sponsor
  • NOC from sponsor 
  • Memorandum of Association (duly attested by a public notary)
  • Registration of trade name and initial approval from DED
  • Bank reference letter of each shareholder
  • Dubai Municipality’s Planning Department and Civil Defence Department certified the location plan and tenancy contract.

Dubai LLC Formation Costs

The minimum capital share requirement for an LLC formation in Dubai is AED 300000. The License cost starts from AED 14,000 (excluding any other charges). There will be additional charges which are as follows:


Category Charges (AED)
Name and Initial Approval AED 1000
Notarization Chargers AED 627
Virtual Offices AED 6500
Visa AED 575
Labor Card AED 550
Investor Visa AED 4000 per visa
Employee Visa AED 6000


Business Setup Worldwide| Your Business Consultant

Business Setup Worldwide is a business consulting firm with qualified consultants with more than ten years of expertise in establishing firms in the United Arab Emirates. Our staff has proven their worth by offering services to small, large, and medium-sized businesses. 

We are familiar with the foundations of this industry because we have established firms in Dubai for owners of local and foreign companies. We offer full-service packages for company creation, registration, setup, and other issues.