LLC Company in Dubai: The Most Favourable Business Entity

by Zaara 17, Feb 2020

If you're an expatriate, or a foreign investor setting up a business in Dubai, you've heard that there are many informative sources of information that you might glance at.

However, when it comes to knowing what you need to know as a foreign investor doing business in Dubai, there can be a lot of confusing information between the facts, the myths, and just plain spam.

Companies are created for various reasons, but it's not always easy to determine the best type of company for your particular situation. For example, businesses may opt to set up an LLC company in Dubai to protect their assets from liability, so many companies decide to go this route.

Since several factors are involved, it's essential to know what is involved when setting up this type of company.

UAE Limited Liability Company: The Structural Framework

A limited liability company (LLC) is a hybrid business structure with characteristics of both a corporation and a partnership.

Offering some legal advantages of a corporation while also providing some tax flexibility and pass-through taxation benefits of a partnership, LLCs prove advantageous to small businesses and corporations.

Whether you're just starting as a one-person start-up or have a more significant business with multiple employees, forming an LLC allows you to protect your assets from taking on any debts your company acquires.

The formation of an LLC demands the presence of a local sponsor. To know, read our latest blog on Why Look for a Local Partner for an LLC in Dubai.

Members of LLC Formation Dubai

The shareholding pattern for an LLC company in Dubai holds the following members:

  • A natural person
  • A corporation
  • A partnership
  • Another legal association or corporate entity

Types of Business License that LLC Business Setup in Dubai Can Hold

A business license can be understood as a legal permit that allows the business entity to carry out business operations legally.

It stands practically limitless when it comes to the type of business activities that an LLC can focus on. The only exception that gets applied is that an LLC can't indulge itself in banking and insurance activities.

A few of the business licenses that an LLC in Dubai can hold include:

  • Trading
  • Professional Services
  • Manufacturing
  • Tourism & Hospitality etc.

LLC Registration in Dubai: Step-by-Step Process to be Followed

Setting up an LLC company in Dubai is relatively straightforward, but knowing the proper steps to take is important, which involves:

  • Be clear on the business activity you want to proceed with, as it will help you understand the business model and the market scenario in the most feasible way.
  • Market research is something that you can't skip at all. After you have understood your target segment, you need to deep-dive into the existing market and understand the players and their strategies.
  • Choose a specific location where you want to carry out the business activities. The UAE has different segments like Mainland, Free zone and Offshore used by various businesses depending on their business requirements.
  • Make sure to choose a registered agent who can help you understand the complete legal process. Your business partner will represent your company and deal with the documentation on your behalf. Also, enter into a fruitful discussion with your business partner to understand the next moves easily.
  • Next, you need to select the business name and ensure that you have at least three alternatives to choose from.
  • Get the essential documents drafted and present them to the relevant authorities to get the business approvals.

After you are done with the business approval, i.e. obtaining the Certificate of Incorporation, you can set up your business operations at ease.

In the next move, hire the best staff you think is suitable for your business. The UAE allows the investors to hire global talent, with the condition of providing employment visas. At the same time, the investor also needs to obtain an investor visa.

Choosing to set up your own LLC company formation Dubai can be a daunting task, but it's not something that you have to do alone.

Commitbiz Management Consultants is one of the top ten business consultants in Dubai who holds experts that are well-versed with the company incorporation procedure.

If you're starting and don't know where to begin, we can help. We'll explain the steps you need to take to set everything up. To learn more, feel free to contact us today-we'd be glad to assist!


How many shareholders can an LLC have in Dubai?

A Limited Liability Company can have a minimum of 2 shareholders and a maximum of 50 shareholders.

What is the estimated cost of forming an LLC in Dubai?

The approximate cost of establishing an LLC Company in Dubai would be around AED 24000.

Who issues the trading license for an LLC company in Dubai?

 The Department of Economic Development provides a trade license for an LLC company in Dubai.

What are the uses of investing in a Limited Liability Company in Dubai?

The following are some of the goodness of investing in a limited liability company:

  • Low-cost company formation

  • Protection from Liability

  • A wide variety of legal business activity

  • The ability to select the desired business location

  • Possibility of applying for numerous visas

What is the cost of LLC renewal in Dubai?

The cost of LLC renewal in Dubai is around AED 8000 to AED 15000.