How to Set Up a Limited Liability Company in Dubai?

by Zaara 11, Oct 2019

Choosing the right business entity in the United Arab Emirates has long-reaching advantages as well as disadvantages. One of the popular business structures preferred by many investors in the Emirates is the Limited Liability Company (LLC). This corporate structure allows foreign citizens to own 49% of its shares, while the remaining 51% must be brought by a local sponsor or a partner. Local sponsors usually act as sleeping partners and won’t be involved in the running of your business. They help you deal with the Ministries and the government for paperwork. The Limited Liability Company can be formed with a minimum of 2 and a maximum of 50 shareholders, where the liability of the shareholders is limited to their share in the company’s capital. The LLCs are restricted to perform few business activities like banking, money investment, or insurance.

What makes LLC different and one of the most preferred business types is a great deal of versatility it provides. An LLC company can trade anywhere in GCC and UAE.

Advantages of an LLC Formation in Dubai

  • No restrictions on the number of visas that can be acquired
  • The investors of the company can get investor's visa under which they can get investor status in the Emirate along with their family
  • An LLC is excused from paying the standard 5% customs duty on imported goods
  • No restrictions imposed on real estate ownership
  • No requirement on minimum share capital
  • LLCs under trading is allowed to conduct business within the Emirate as well as import and export freely
  • It is compulsory to rent an office and obtain Ejari in order to incorporate an LLC in Dubai

Procedure to Set up a Limited Liability Company in Dubai

The main reason behind LLC being the most preferred corporate structure among the business people is that it is addressing different concerns of investors along with providing different benefits that are either unique or also available in different types of business structures. The steps to register your company in Dubai are as follows.

  1. Obtain an initial approval for registering your business from the Department of Economic Development (DED). This shall be done after you register your trade name
  2. Select the type of business activity and obtain approval from the relevant Ministry/Department in case the chosen activity is of special nature
  3. Draft company’s Memorandum of Association and have it notarized from the courts
  4. Finalize the tenancy contract in a commercial building and get it attested by the Real Estate Regulatory Agency
  5. Obtain necessary approval from the Dubai Municipality Planning Department
  6. Submit applications and initial approval along with the notarized copy of Memorandum of Association, tenancy contract etc. to the DED
  7. After scrutiny by the legal department, the company name will be entered in the Commercial Registry, and its MoA will be published in the Memorandum of Association Bulletin
  8. The DED will not issue the license
  9. Register your company with the Ministry of Labor and Department of Immigration
  10. Register with the Dubai Customs Department and get the Customs Code issued

Documents Required for LLC Registration

  • Get a local sponsor or work with a management consultancy firm to acquire one
  • Copy of passport for all shareholders and managers
  • Copy of the UAE residence visa (if applicable)
  • No Objection Certificate (NOC) from current UAE residence visa sponsor
  • Address proof for each shareholder
  • CV for each shareholder (if applicable)
  • Lease agreement or title deed for the business

LLC Incorporations which Require Special Approval

  • Tourism activities
  • Health Care activities
  • Architectural and engineering consultancy
  • Shipping, freight forwarding and logistics activities
  • Companies in Dubai World Communities (Trakhees)
  • Educational service

Why LLC?

There are many reasons why one must go for LLC formation in Dubai. The most evident and essential of them all is security from individual liability to members of this specific company. In case of liability or any court verdict, the company is only required to pay according to its share capital. It saves members of the company from paying from their assets like home, car etc.

If you want to start your Limited Liability Company in Dubai, then we at Commitbiz can help you with it. Our advisors are well-versed with the legal formalities and can make the process hassle-free. Contact us today and know more.


What is the License cost for a Limited Liability Company formation in Dubai?

The LLC license cost in Dubai is approximately AED 26900 ($ 7350). Valid for 1 year, after which it has to be renewed. The renewal cost is AED 14,900.

What documents are needed for LLC formation in Dubai?

The following documents are needed for LLC company formation in Dubai -

  • Application for Dubai company setup, trade name, & license.

  • Passport copy of the foreign investor

  • Memorandum Of Association

  • Certificate of DED approval

  • Copy Of Ejari

  • Copy Of Emirates ID

  • Passport copy of Local sponsor, Directors, and General Managers

Which are the Top 5 LLC companies in Dubai?

  • Majid Al Futtaim

  • LuLu Group International

  • Land Mark Group

  • S.S Lootah Group

  • Al Ghurair Group

Best Locations for LLC setup in Dubai?

These are the top locations for Dubai LLC company setup -

  • Al Karama

  • Business Bay

  • Deira

  • Bur Dubai

  • Sheikh Zayed Road