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What is Limited Liability Company or LLC Dubai

What is Limited Liability Company or LLC Dubai

Dubai is the middle east’s business hub, and many foreign entrepreneurs are planning to start their businesses or expand their companies in the vibrant business environment of Dubai. The Limited Liability Company (LLC) is the most common form of business in Dubai. An LLC can be registered by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the business capital. What makes an LLC Dubai a smart business solution is a great deal of flexibility it provides. An LLC company can trade anywhere in UAE and GCC and gives maximum legal ownership to an expat.

Advantages of Forming an LLC Dubai 

There are plenty of advantages to forming an LLC Dubai, and some are already discussed above. Some other advantages of forming LLCs in Dubai are:

  • Conducting any type of business activity excluding insurance, banking, and investment,
  • No restrictions on the number of visas that can be obtained,
  • Investors of an LLC company can avail investor’s visa under which they can get investor status in the Emirate along with their family,
  • An LLC is exempted from paying the standard 5% customs duty on imported goods,
  • Restrictions are not imposed on real estate ownership.

Business Activities Requiring Special Approvals and Licenses in Dubai

The list of the business activities that require approvals in Dubai are: 

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


How to Set Up an LLC in Dubai 

The following steps are required for establishing an LLC Dubai:

  • Company registration in Dubai with the Department of Economic Development (DED),
  • Drafting and notarizing the company’s Memorandum and Articles of Association,
  • Submitting all the required documents and business license application forms with the DED,
  • Registering with the Dubai Commercial Register,
  • Upon incorporation, registering the employees with the Ministry of Labour and General Authority for Pension and Social Security.

The tasks that should be carried out for forming an LLC are:

  • filling the application form for the trade name and the application form for the warrant,
  • copies of shareholders‘ passports and suggested general manager and directors should be provided, 
  • DED will then issue an initial approval which should be gathered, 
  • Supplementary approvals may be required depending on the activities proposed by the LLC,

If one or both members are corporations, then the LLC Subscription is approved by a copy of the Certificate of Incorporation, an Association Memorandum, and a Board of Directors resolution. It is also advised to have a Power of Attorney (POA) authorizing a person to act on behalf of the shareholders having formed the LLC. Once the appropriate ministries and/or agencies receive the initial approval and approvals, the Power of Attorney holder must sign an LLC formation contract before a notary.

Major Fees for an LLC Dubai Formation

The major fees and costs that should be considered for forming a Limited Liability Company are:

  • Commercial license fees
  • General trading activity Fees
  • Non-Arabic trade name fess
  • Market Fees
  • Name board fees
  • Service fees
  • Partner accommodation fess
  • Chamber of commerce fees
  • Economy ministry fees
  • Local fees

Documents Required for Registering an LLC in Dubai 

The primary documents to establish a Limited Liability Company are:

  • Determine the type of legal entity
  • Choose a trading name
  • Apply for a business license
  • Choose an office space
  • Gather pre-approvals, register the business and obtain the license

How Can Choose UAE Help

At Choose UAE, our company formation specialists can guide you in your Limited Liability Company (LLC) Setup, making it easy for you to put up your own business in the Mainland with the right license type starting from AED 14,500. From documentation to licensing, forming an LLC Dubai is easy with the right people to do the job for you.

Delve into the detailed costs entailed in establishing a Limited Liability Company (LLC) within the two core jurisdictions of the UAE: Dubai Mainland and the UAE Free Zone. This exploration sheds light on the financial considerations associated with each jurisdiction, providing essential insights for informed decision-making in your business setup endeavors.

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