8 Benefits of LLC Company Formation in Dubai

by Zaara 28, Nov 2019

8 Benefits of LLC Company Formation in Dubai

Dubai has now become a hub for people in business and entrepreneurs from all over the world. It combines the elements of the eastern part and the western part of the globe, which is one reason why people prefer to come here and establish a business. Moreover, an understanding and helping government, easy accessibility from all over the world, and the presence of various free zones are the primary reasons Dubai is considered a beautiful and favourable destination for entrepreneurs and people in the business.

One of the best ways to conduct business in Dubai is by forming a Limited Liability Company (LLC). Let's know more about it.

Limited Liability Company in Dubai

An LLC is one of the most used methods of company formation. This is so prevalent among newcomers and potential entrepreneurs because of its various advantages and its flexibility. Mostly used by the expatriates, this legal structure will require the help of a local agent. This local agent will have a 51% share in the business, but you do not need to worry as the local partner will mostly be a dormant partner. These partners' main work will be to coordinate with the various government departments and provide assistance in handling all the paperwork.

Benefits of LLC Company Formation in Dubai

The main advantages of incorporating an LLC in Dubai are:


The low set up costs of the LLC make it a perfect business structure to be followed by the expats. A limited liability company may or may not have any restrictions regarding the minimum capital. This minimum capital will largely depend upon the nature, size and type of the business activity.

2.Quick Setup

You can register your company with the Department of Economic Development (DED) within just 90 minutes. Moreover, there is no requirement for a lease agreement. While forming a Dubai LLC, it is possible to obtain the required license for various activities. 

3.Choosing the Locality for Setting up or Trading

The fast and easy incorporation process is a very lucrative factor for entrepreneurs. There are fewer restrictions on the types of business to be conducted, and an LLC can do business anywhere in the country.

4.Facility of Visa for Investors

An expat in Dubai LLC can benefit from registering himself as an investor and availing certain benefits. The process to obtain an investor visa is easy. All you need to do is to produce the required documents in front of the relevant government authority. When the expat receives the investor status, even the family of the expat can enjoy the situation.

5.Forming Branches

This legal structure of business formation will allow you to notice everyone in the market and help you establish your niche. After establishing a grip on the market share, the company can then transact directly with the local markets. If this is not enough and you need to spread more awareness about your company, you can open branches of the company worldwide.

6.Range of Business Activities Permitted by DED

There is a wide range of industries operating in the UAE. From manufacturing to services, you can surely find success in all industries. That is why entrepreneurs can choose from a range of business activities to operate in the Emirates. Unlike some other company types, LLCs allow you to undertake a broad and extensive range of business activities. Entrepreneurs can apply for a licence to trade in any of the 2,000 activities permitted by the DED, from agriculture to finance.

7.Low Import Duties

The UAE enjoys an open trade policy, and resultantly there are low import duties. This makes it an ideal place for operating a company and carrying out business activities. The cost of importing different raw materials is quite good thanks to the low import duties. Hence, it is a favourable location for business set up.

8.Growing Economy

Due to the improving economy in the UAE, the country offers numerous business opportunities for entrepreneurs to thrive, grow and develop. Dubai has one of the largest economies and GDP in the Arab world, a testament to its status as an ideal location for company setup.

There are many other benefits of setting up a Limited Liability Company, such as:

  • No payment of taxes
  • Easy to open corporate bank accounts
  • No fixed capital requirement
  • No limit on owning of office or any other properties in the UAE

These benefits are a significant reason LLC is one of the most used legal business structure in Dubai.

Process of LLC Company Registration in Dubai

To form an LLC in Dubai, you need to follow specific steps and take care that the company is compliant with the government's rules and regulations. The steps for the LLC company formation in UAE are:

  1. Choose a legal organizational structure for your company. This legal structure should benefit the company and comply with the rules and regulations of the government.
  2. You need to pick out a name for your company and decide the various business activities conducted under your company.
  3. Choose a location for your company. This step requires brainstorming as there are many factors to be taken care of, such as proximity to the market, availability of transportation, geographical location, etc.
  4. Collect all the required documents and submit them to the Department of Economic Development (DED). You may also need to get particular approval from the concerned authorities depending upon the activity being performed.
  5. Open up office, a warehouse of the company.
  6. Commence your business activity.

Setting up a company in Dubai will provide access to the growing markets of the country. The demands of nearby countries will also be accessible to the company. Thus the number of opportunities available to a company will be high in comparison to any other destination.

If you want to set up your LLC in Dubai, "Commitbiz" will take care of all your business setup processes. It also provides a range of services such as Vat calculation, Tax calculation, and various other services that will allow you to focus on the company's growth. For details on the services, do contact us- we would be happy to help.