Dubai’s thriving economy, world class infrastructure, and investor friendly regulations have made it one of the most attractive business destinations in the world. Whether you are a foreign investor looking for 100 percent ownership in Dubai or a local entrepreneur aiming to expand your business, setting up an LLC company in Dubai offers unmatched flexibility and protection.
LLC (Limited Liability Company) is the most popular business structure in the UAE mainland. It combines the freedom of commercial trading across the UAE with limited liability protection for its shareholders. In simple terms, it allows you to operate freely while minimizing personal risk.
Over the past few years, the UAE government has introduced significant reforms, including 100% foreign ownership in mainland companies, making it easier for international investors to set up businesses without needing a local sponsor. This development has reshaped Dubai’s business landscape, attracting thousands of new companies each year.
In this detailed guide, we’ll explain everything you need to know about LLC company formation in Dubai, including the process, cost, documents required, and how Nines Consultancy can help you set up smoothly and compliantly.
What Is an LLC Company in Dubai?
LLC (Limited Liability Company) in Dubai is a legal business structure where the liability of each shareholder is limited to the value of their shares in the company’s capital. This means your personal assets remain protected even if your company faces financial challenges.
LLCs are ideal for a wide range of commercial and industrial activities, and they can trade freely across the UAE mainland and internationally.
LLC Meaning in Dubai
In the UAE, the term LLC stands for “Limited Liability Company,” a type of legal entity recognized under the UAE Commercial Companies Law (Federal Law No. 2 of 2015).
It is the go to structure for most investors because it allows them to:
• Conduct business anywhere in the UAE.
• Hire unlimited employees.
• Open corporate bank accounts.
• Bid for government projects.
• Benefit from the UAE’s double taxation treaties.
Why LLC Formation Matters in the UAE Context
Dubai’s Department of Economy and Tourism (DET, formerly DED) governs mainland company registrations, ensuring transparency and ease for investors. The introduction of 100% foreign ownership in the UAE mainland under Cabinet Resolution No. 16 of 2020 has made LLCs even more appealing.
For example:
• A foreign investor can now own 100% of their LLC in approved activities without the need for a local Emirati partner.
• Investors can choose from thousands of licensed activities listed in the UAE 100 Ownership Positive List.
• The Federal Tax Authority (FTA) allows VAT registration for LLCs once annual turnover exceeds AED 375,000.
This makes the LLC model the most balanced option for businesses seeking credibility, local trade access, and full ownership flexibility.
Step-by-Step Process for LLC Company Formation in Dubai
Setting up an LLC in Dubai involves a structured yet straightforward process. Below is a step by step breakdown:
Step 1: Choose a Business Activity
The first step is to define your business activity, as it determines the license type (commercial, industrial, or professional). Dubai’s DET provides an extensive list of permissible activities for both local and foreign investors.
Step 2: Select a Trade Name
Choose a unique and compliant trade name following UAE naming conventions. The name should not violate public morals or include religious references. Nines Consultancy helps verify and reserve your trade name with the DET.
Step 3: Decide on the Ownership Structure
If your chosen activity is eligible under 100% foreign ownership, you can own the company entirely. Otherwise, a local sponsor (UAE national) may hold a small share in compliance with current laws.
Step 4: Get Initial Approval
The DET issues an initial approval certificate, confirming that you can proceed with the formation process. This step ensures your activity and trade name are legally acceptable.
Step 5: Draft the Memorandum of Association (MOA)
An MOA is a legal document that defines the company’s structure, shareholding pattern, and operational guidelines. It must be notarized in a UAE public notary office.
Step 6: Choose an Office Space
A physical office address is mandatory for an LLC in Dubai. You can opt for a traditional office, a flexi-desk, or a shared workspace depending on your budget and business model.
Step 7: Obtain Necessary Approvals
Some activities, such as healthcare, education, or financial services, require external approvals from respective authorities like DHA, KHDA, or the Central Bank.
Step 8: Submit Documents and Pay Fees
After completing all documentation, submit the final application to the DET and pay the required fees to receive your trade license.
Step 9: Receive Your Trade License
Once your documents are verified and approved, you’ll receive your Dubai LLC trade license, officially allowing you to start operations.
Documents Required for LLC Registration in Dubai
• Passport copies of all shareholders and managers
• UAE residence visa copies (if applicable)
• No Objection Certificate (NOC) from current sponsor (for UAE residents)
• Proposed trade name reservation certificate
• Initial approval from DET
• Memorandum of Association (MOA)
• Lease agreement for office space (Ejari certificate)
LLC Company Formation Cost in Dubai
The LLC formation cost in Dubai typically ranges between AED 15,000 to AED 30,000, depending on several factors such as:
• Type of business activity
• Number of shareholders
• Office location and size
• Additional approvals or visa quotas
To give you a breakdown:
|
Expense |
Approximate Cost (AED) |
|---|---|
|
Trade Name Reservation |
620 – 1,000 |
|
Initial Approval |
150 – 600 |
|
MOA Drafting & Notarization |
2,000 – 3,000 |
|
License Issuance |
10,000 – 15,000 |
|
Office Rent (Annual) |
10,000 – 20,000 |
|
Visa Processing |
3,000 – 5,000 per visa |
Total Estimated Cost: AED 15,000 – 30,000 (depending on activity and location)
If you’re considering alternatives, free zone company formation in Dubai can start from as low as AED 12,500, but it comes with trade restrictions outside the free zone.
Timeline for LLC Setup in Dubai
The entire process of LLC company formation in Dubai usually takes 5 to 10 working days, provided all documents are correctly submitted.
With Nines Consultancy’s professional assistance, this timeline can be shortened as we handle your documentation, approvals, and coordination with authorities on your behalf.
Key Benefits of Forming an LLC in Dubai
• 100% Foreign Ownership: Most business activities now qualify for complete foreign ownership under the UAE’s updated laws.
• Local Trading Rights: LLCs can operate freely across the UAE mainland.
• Limited Liability Protection: Personal assets of shareholders are protected.
• Multiple Visa Options: Easy eligibility for investor and employment visas.
• No Currency Restrictions: You can transact in any currency.
• Access to Government Projects: Eligibility to bid for tenders and contracts.
• Repatriation of Profits: Full repatriation of capital and profits allowed.
• Global Credibility: Recognized structure for both local and international clients.
Why Choose Nines Consultancy for LLC Formation in Dubai
At Nines Consultancy, we simplify your company setup journey. From document preparation to license issuance, our experts ensure a smooth, transparent, and compliant process.
Here’s Why Investors Choose Us:
• Licensed UAE business setup and ISO consultancy firm
• Expertise in Dubai mainland and free zone company formation
• Assistance with 100% foreign ownership registration
• End-to-end PRO and visa processing services
• Transparent pricing with no hidden costs
• Dedicated consultant from start to finish
We work closely with Dubai’s Department of Economy and Tourism (DET), Free Zone Authorities, and Chambers of Commerce to ensure full compliance for your business setup.
Frequently Asked Questions (FAQs)
1. What is the full form of LLC in Dubai?
LLC stands for Limited Liability Company, a business structure where shareholders’ liability is limited to their share capital.
2. Can foreigners own 100% of an LLC in Dubai?
Yes. As per UAE laws, foreign investors can now own 100% of mainland LLCs in approved business activities without a local sponsor.
3. How long does it take to register an LLC in Dubai?
Usually, it takes between 5 to 10 working days depending on the type of activity, documentation, and approvals required.
4. What are the benefits of setting up an LLC instead of a free zone company?
LLCs allow you to trade directly in the UAE mainland without restrictions, unlike free zone companies which are limited to their specific zones.
5. What is the average cost of LLC registration in Dubai?
The cost of setting up an LLC in Dubai ranges from AED 15,000 to AED 30,000, depending on your activity and location.
6. Can Nines Consultancy help with VAT registration and PRO services?
Absolutely. We provide complete post-setup support, including VAT registration, PRO services, and ongoing business compliance.
Start Your Dubai LLC Journey Today
Forming an LLC company in Dubai opens the door to endless opportunities in one of the world’s fastest-growing business hubs. With 100% ownership options, investor friendly policies, and easy access to local and international markets, there has never been a better time to establish your presence in Dubai.
At Nines Consultancy, we take the complexity out of business setup. Our experts handle everything, from documentation to final licensing, ensuring your journey is stress-free and fully compliant.
Book your free consultation today or Chat with us on WhatsApp to get a personalized quote for your LLC company formation in Dubai.
