News & Articles

Find Out Everything About an LLC Company Set Up in Dubai Mainland

Find Out Everything About an LLC Company Set Up in Dubai Mainland

Dubai is the Middle East Business hub, with 90% of its population consisting of expats. With the government’s fantastic tax policies, the straightforward procedure of LLC company set up in Dubai, a cost-effective business solution, and a vibrant business environment, entrepreneurs and investors alike have been attracted to Dubai in the last decade. The government’s business policies are in line with attracting foreign investors and helping the country’s economic growth, which has proved to be hugely efficient, pragmatic, and successful.

Limited Liability Company (LLC) is one of the most popular company formation legal structures in Dubai Mainland; it is an independent legal entity that multiple shareholders can own. It is also an ideal business solution for new entrepreneurs and businessmen, as LLC has low start-up costs and provides full access to the UAE marketplace. To run a business under an LLC, opening a bank account and obtaining a tax identification number are essential.

Main Advantages of having an LLC Company Set Up in Dubai

LLC is one of the most popular company formation options in Dubai Mainland for many reasons. The following are some of the main advantages of running a business under an LLC:

  • 100% foreign company ownership on professional, commercial, and industrial licenses can be enjoyed by entrepreneurs when they form an LLC in Dubai. 

  • Dubai Department of Economic Development (DED) will grant the company registration without committing to a lease agreement.

  • A company under an LLC’s legal structure grants entrepreneurs the freedom to rent their offices anywhere in Dubai and the UAE. Thus entrepreneurs can choose where to establish their companies to make their businesses even more lucrative.

  • Registering a company under LLC will allow entrepreneurs to apply for their dependent visas. Based on the size and nature of the business, entrepreneurs can also apply for their employees’ visas. The bigger the leased office, the more visas entrepreneurs can apply for. The visa application process is straightforward: entry permit, status adjustment, medical fitness test, and finally, Emirates ID registration and visa stamping. 

  • LLCs allow entrepreneurs to carry out a wide range of business activities as LLCs have no restrictions or limitations on the business activities listed by DED compared to some Free Zones. 


LLC Company Set Up in Dubai Procedure

The process of LLC company set up in Dubai is relatively straightforward and swift. This procedure can be broken down into a few major steps as follows:

1. Choosing a business activity: the DED lists the list of all business activities (over 2,000). Each license that later should be applied and submitted to the DED will cover many of these activities; that’s why choosing the desirable business activities is vital. 

2. Selecting a company name:
 the rules and regulations regarding choosing a name for companies are stringent and may be unfamiliar to foreigners. It is best to be informed of the guidelines for selecting a company’s name before checking its availability and registering it. There are also other considerations, such as paying extra fees for choosing a foreign name.

3. Applying for initial approval:
 after registering a trade name, entrepreneurs can apply for an initial approval certificate from DED. The company will receive the initial approval certificate as an entry issued by the Commercial Registry. 

4. MoA and LSA attestation:
 for registering an LLC, drafting and signing a Memorandum of Association (MoA) attested by a Notary Public is essential. A Local Service Agent (LSA) or Corporate Agent needs to be assigned for a Professional Service license. This local agent will represent the company regarding licensing and compliance and has no further role in running the business (annual fee is paid instead) unless agreed otherwise. However, there are some business activities that do not require LSA.

5. Registering a physical office with the company:
 leasing an office in the UAE for registering a company is necessary. The rental contract should be attested by Ejari, the mandatory registry of tenancy contracts. To register with Ejari, initial approval and other primary documents are required to move on to the next step: obtaining the trade license.

6. Collecting the trade license:
 the trade license application must be submitted to the DED. After meeting all the criteria, a trade license, an MoA, certificate of incorporation, and share certificates of the company will finally be issued. 

Documents Required for Registering the LLC

The following are the documents required for obtaining the initial approval for an LLC Company Set Up in Dubai: 

  • Applicant’s passport copy
  • Registration application form issued by the DED
  • Trade name reservation document 
  • Photocopy of the applicant’s naturalization identification (for the UAE nationals only)
  • NOC letter from the applicant’s sponsor (not applicable for the GCC nationals)

For registering a trade license, the following documents are required:

  • Initial approval receipt 
  • Tenancy contract of the office or warehouse attested by the Planning Department and Civil Defense Department of Dubai municipality along with the location plan
  • Original photocopy of the MoA authenticated by the Notary Public 
  • Suppose the local partner is an existing corporate entity in the UAE or abroad. In that case, the MoA and the Commercial Register Certificate must be attested by the UAE embassy/consulate or by a GCC state embassy/consulate and the UAE Ministry of Foreign Affairs (and their translation to Arabic).  

Dubai Mainland License Cost 

The Dubai Mainland License cost depends mainly on the business activity, local service agent, and legal structure of the company. Aside from the other government fees included in the process, it starts from AED 14,500.

How Can Choose UAE Help

Choose UAE is an expert in establishing businesses in the Dubai Mainland and UAE. Our Company Formation Specialists are fully-equipped to help you in decision-making with their knowledge of the industry and UAE’s legal procedures that will help you avoid unnecessary mistakes in setting up a business. 

Our partnership does not end after you get your license issued; our goal is to help you grow and scale up your business with our highly-efficient support services that will give you the boost you need to run your company less challengingly.

What Makes Us Stand Out?

Start Your Business Journey with Us

We are Rated 5

on Google

Knowledge Center

Can't find the answer you're looking for? Don't worry we're here to help!