Dubai is one of the leading business centres that provides unique opportunities to entrepreneurs whose goal is to set up one of the world’s most rapidly expanding economies.
A limited liability business setup in Dubai offers flexible operations, investor-compatible conditions, and entry into regional marketplaces. Therefore, to achieve a successful launch, entrepreneurs must understand the requirements to set up an LLC in Dubai to achieve a successful launch.
So, in this guide, we’ll provide complete information about how to open LLC in Dubai, including its legal details, formation cost in Dubai, benefits, and detailed process of forming an LLC. Let’s get started!
What is an LLC in Dubai, UAE?
The limited liability company represents one of the various types of business in the UAE. This business structure shields you from personal responsibility and permits adaptability in tax handling and leadership guidelines. Moreover, this business structure safeguards its owners from legal liabilities tied to their assets when dealing with business financial responsibilities.
Compared to alternative business structures, LLC registration offers management flexibility and tax benefits. Dubai typically allows companies to start an LLC, which requires at least one shareholder and a maximum of fifty members. The owners of an LLC share responsibility for covering their portion of company capital losses.
Benefits of Opening an LLC Company in Dubai
The following are the advantages of LLC formation in Dubai:
1. Local Market Access
By setting up a Limited Liability Company, you can secure permission to enter the UAE market on a land-based level since free zone companies must limit their activities within free zone regions.
2. Ownership Flexibility
Since June 2021, the UAE authorities have passed laws that permit full foreign ownership of LLCs across multiple sectors, which no longer require a UAE national sponsor.
3. Limited Liability Protection
The assets allocated to shareholders in an LLC stay protected from business debts because their maximum exposure is limited to the amount of their shares in the company.
4. Tax Advantages
The absence of personal and corporate income tax remains in Dubai, but corporate owners must pay a 9% tax if their profits surpass AED 375,000*.
5. Flexibility in Location
If you start an LLC in Dubai, you can access unrestricted office location opportunities across the entire metropolis.
6. No Minimum Capital Requirement
Starting a business as Limited Liability costs nothing, reducing the entry barrier to Dubai mainland.
7. Residence Visa Eligibility
LLCs in Dubai allow shareholders, their families, and employees to apply for UAE residency visas.
How to Set Up an LLC Company in Dubai?
You may be wondering how to open LLC in Dubai or what the process is?
If you want to form an LLC in Dubai, you need to follow all UAE government regulations and business policies. The following steps will help you open an LLC company in Dubai:
Step 1: Choose your Business Activity
Your business activity determines the starting point for establishing an LLC. The Dubai Department of Economic Development (DED) provides an approved list of range of business activities, including trading options and professional services, so you can use this to structure and acquire licenses for your company.
Step 2: Reserve Name for Your LLC Company
The selection of an appropriate business name is essential for LLC company registration in Dubai. Organising an LLC company name requires harmony with local naming rules that exclude using offensive terms and religious references while banning name abbreviations. Your business name must correspond to the nature of your business and its objectives. Remember, it must not duplicate already registered companies.
Step 3: Select a Physical Location
Find a suitable location for your Dubai LLC company, then obtain an initial approval certificate from DED. Rejecting your trade name during this procedure will stop the certificate from being issued.
Step 4: Select an Office Space
Your business requires either UAE mainland or free zone office space, which will require rent after initial registration. Businesses on mainland territory must occupy physical workplace premises, yet free zone operations enable virtual spaces and physical offices.
Step 5: Obtain Pre-approvals
To register an LLC, all business documents must be prepared, and you should include both the Memorandum of Association (MoA) and Local Service Agent (LSA) agreements. Working with a reputable local sponsor helps your business satisfy all mandatory legal requirements.
Step 6: Apply for an LLC license
The process of obtaining your LLC trade license requires the submission of all required documentation. Your submission results in license approval after document verification, allowing you to receive trading rights.
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Step 7: Apply for Visa
Bring your labour card and partner visa applications to authorised authorities. After completing the document submission, you can start a Limited Liability Company in Dubai.
Step 8: Open a Corporate Bank Account
You gain access to established corporate banking capabilities through your LLC trade license. Customers should select banks specialising in handling their industry needs for effective business financial operations. Your business strategy determines which bank will support your operations because each institution offers specific advantages.
Necessary Documents to Start an LLC Company Formation in Dubai
Collect the following documents for a successful LLC company formation in Dubai:
- A valid copy of your passport.
- For residents, the mandatory document includes a copy of your Emirates ID and passport.
- Recent passport-size photo
- A comprehensive business plan that demonstrates company objectives.
- An application form requires completion with an additional signature.
- No Objection Certificate (NOC) from your current sponsor or employer.
Cost of LLC Company Formation in Dubai
The lowest cost to register an LLC business in Dubai is AED 18,000*. The following are the costs of opening an LLC in Dubai:
- The starting prices for company registration and LLC trade licenses in Dubai start between AED 10,000* and AED 15,000*.
- Location determines the price for company office space. Shared or small offices cost in Dubai range between AED 15,000* and AED 25,000*.
- A UAE residency visa for every person carries a cost ranging between AED 5,000* and AED 10,000*.
Business setup services in Dubai include several additional costs above basic requirements. Updating your LLC license in Dubai costs between AED 8,000* and AED 15,000*.
How Much Time is Required to Start an LLC Limited Liability Company in Dubai?
Registering an LLC company setup in Dubai requires around 1 to 3 weeks. The timeline can vary depending on factors such as:
- Get a trade name reservation. It usually takes 1-2 days.
- Get initial approval from DED. It typically requires 2-3 days.
- Developing and executing the MoA and LSA Agreement usually takes a week.
- The Department of Economic Development (DED) procedure and fee payment require between 1 and 2 days.
Final Words
Knowing how to open LLC in Dubai offers entrepreneurs and investors many business opportunities across the UAE. Business owners can take advantage of this structure, which facilitates global market integration and provides tax efficiency options and flexible ownership rules without having to put down initial capital outlay. When you follow accurate procedures while honouring UAE laws, you can establish your LLC effectively to capitalise on Dubai’s position as a major global economic hub.
Xpert Advisory will guide you through the process of LLC company formation in Dubai. Our business customisation options enable you to shape LLC incorporation packages that will match your needs in Dubai. Contact us today to avail the best business support services!
FAQs
What Restrictions Does the LLC Business Setup in Dubai Permit on Foreign Ownership?
Under a new amendment, the UAE permits complete ownership rights to investors outside the country. A resident previously needed to maintain most ownership in stakes preceding this reform. Foreign entities operating in the UAE must fulfil the regulatory requirements developed by the UAE cabinet.
How Much Amount is Required to Open an LLC in Dubai?
The establishment of an LLC company in Dubai requires no minimum business capital. Every LLC must maintain a minimum authorised capital of AED 100,000*.
How Many Owners are Required to Form a Dubai LLC Company?
According to its provisions, the LLC structure allows for between 1 shareholder and 50 shareholders.
