Limited Liability Company in Dubai

March 29 2019

LLC Company formation in UAE

A Limited Liability Company (LLC) is the most common legal structure for trading businesses in Dubai. An LLC can have between 2-50 shareholders. The shareholders in a Dubai LLC are liable only to the extent of their share in the capital of the LLC.

What activities can be carried out with an LLC in Dubai?

An LLC can have any industrial, commercial (trading), professional or tourism activity. There are some professional activities which are excluded, and some others require approvals of other regulated authorities.

Who can be the owners of an LLC in Dubai?

51% of the share capital of an LLC in Dubai should be held in the name of a UAE National. The profits however, can be distributed in a different ratio, as specified in the Memorandum of Association.

Both individuals and corporates can be shareholders in an LLC.

Read our detailed article on LLC ownership, that contains information about LLC ownership rules and requirements according to owners’ nationalities.

Does an LLC in Dubai need a manager?

Every LLC has to appoint a manager. The name of the manager will be on the trade license and he/she is responsible for the day-to-day activities of the company.

LLCs can appoint between 1-11 managers. A partner in an LLC can also be a manager.

Is there a minimum capital required for an LLC?

There is no minimum capital for an LLC. However, it should be mentioned in the Memorandum of Association.

Trade names

The trade name of an LLC in Dubai will have to mention the activity of the firm, and end in the suffix LLC. Click here to know more about selecting a trade name for your company in Dubai.


An LLC can have more than one branch.

Advantages of setting up a company in Dubai mainland

In 20 years, Dubai has become an attractive business destination for investors and companies that want to operate in the high-growth markets of the Middle East, Asia and Africa. Here are some of the advantages of company formation in Dubai.

Growing Economy

Dubai has been successful in terms of economic growth, and in diversifying away from oil. Sectors such as trade, logistics, transportation, finance, services and tourism account for almost 75% percent of Dubai’s GDP.

Favourable Investment Climate

Dubai’s Department of Economic Development (DED) has been instrumental in driving Dubai’s economic agenda. Their initiatives in making doing business in Dubai easier, and stong Government support, have resulted in Dubai being attractive to both local and international investors.

Tax friendly

There are no personal or corporate income taxes. This enables companies in Dubai to deploy their capital and earnings to expand their businesses, and attract good talent from all parts of the world.

Geographic Location

Dubai is located between Asia, Europe and Africa, a gateway to over 2 billion people.  

Excellent Infrastructure

Dubai has an excellent network of roads and highways, a world-class Metro system and exceptional ports and airport facilities.

Access to a pool of Human Resources

Companies operating in Dubai have access to a multicultural pool of talent from across the world. The local Emirati population is highly educated and seeks more active participation in the private sector.  


The UAE has had a politically stable climate since inception. Dubai is known as one of the most tolerant, prosperous, secure and safe societies in the world and is ranked as the top Middle Eastern city in Mercer’s Quality of Life Index.

How to apply for an LLC in Dubai?

The process of applying for an LLC in Dubai is as follows:

Select business activity – Click here to download a list of business activities allowed by the Dubai DED.

Find a UAENationalto act as local sponsor

Decide the distribution of the shareholding, the profits and losses among the partners and other operational modalities.
Reserve of a new trade name. Click here to know more details on acceptable trade names.

Sign the Memorandum of Association in the Dubai Courts. Click here to access a draft Memorandum of Association.

Rent office space in Dubai. You can choose from business centre desk options as well.

Pay the DED fees and obtain the trade license.

Contact us today to speak to our consultants who can guide you through the process.


Costs of a Trading License in Dubai

The cost of an LLC in Dubai starts from AED 25,000, and depends on the activity chosen, and office space that the company rents. Investors now have the option of setting up an LLC with a desk space as well. Additional costs include the registration of the company with the Ministries of Immigration and Labour and visa costs. Click here to download a factsheet that details the main steps and costs incurred in setting up an LLC in Dubai mainland.

Advantages of an LLC in Dubai

Easy setup – The license can be setup within a few days, sometimes even in a few hours, if you meet the required criteria. You can set up an LLC with a desk space, unless more visas are required.

Cost-effective – Unlike many free zones, the Dubai LLC is economical, since you do not need to commit to a large office space in the first year.

Flexibility of doing business – Unlike free zone companies, LLCs in Dubai can do business anywhere in the UAE, and in other countries as well. The company can set up retail outlets, showrooms, and enter into trade agreements with Government entities.

Range of locations – Unlike a free zone, which is a designated area, you can set up an LLC in any area of Dubai, including Deira, Bur Dubai, Business Bay and anywhere else on the Dubai mainland.

Options for multiple visas – LLCs allow for unlimited visas when setting up on the mainland. The number of visas allowed depends on the office space taken, which is usually calculated at 80 square feet per visa. In some cases, the DED is flexible on this allocation, for example in instances where the Dubai LLC has a large outdoor sales force, or cleaning services.

Sponsor of dependents – The LLC can apply for multiple visas for their employees, and the shareholders and employees can sponsor visas for their dependents – spouse, child, parents, maid, cook etc.

An LLC in Dubai can open bank accounts anywhere in the UAE and operate in a tax-free environment, with 100% repatriation of profits.

We provide turnkey solutions for LLC setup in Dubai, including providing a UAE National sponsorship and desk/office space options. Speak to one of our experts who can guide you through the process of setting up an LLC in Dubai, today!



error: Content is protected !!