Overview: Setting up an LLC in Dubai, UAE
Starting a Limited Liability Company (LLC) in Dubai can be a game-changer for entrepreneurs looking to tap into one of the most dynamic business hubs in the world. Whether you’re a seasoned business owner or a first-time entrepreneur, the process of setting up an LLC here offers unmatched benefits, including full control of your business and a strategic foothold in the heart of the Middle East.
But what does it really take to get your company off the ground in Dubai’s fast-paced economy?
In this guide, we’ll break down everything you need to know about navigating the legal, financial, and logistical steps involved, empowering you to launch your LLC with confidence. Let’s dive into what could be the most rewarding decision for your business growth.
Read More: Dubai Company Formation
What is a Limited Liability Company in Dubai?
A Limited Liability Company (LLC) in Dubai is a popular business structure that offers flexibility, protection, and potential for growth, making it an attractive option for both local and foreign entrepreneurs. In this structure, the liability of shareholders is limited to the amount of their shares in the company, safeguarding personal assets from business-related risks. An LLC in Dubai can be established by a minimum of two and a maximum of 50 shareholders, with ownership split based on their contributions.
One of the key features of an LLC in Dubai is that it allows foreign investors to own up to 100% of the business in certain sectors, especially within Dubai’s free zones. However, for companies established outside of free zones, at least 51% of the ownership must be held by a UAE national, unless the business is in sectors where full foreign ownership is permitted.
How to Establish an LLC in Dubai, UAE?
To establish an LLC in Dubai, you need to follow the required procedure which comply with applicable laws and regulations.
The list of steps for LLC company registration in Dubai includes:
Choose a name for your company
Before incorporating your company, you need to choose a name for your company. The company name should be unique, ethical and does not breach the UAE’s laws.
Choose a business activity
The second step is to choose a business activity. Choosing the right business is a must before incorporation. There are lists of business activities regulated by DED and other authorities. OnDemand International will assist you to identify the best business activity for your company
Choosing a business location
The third step is to finalize the location for your company. Before choosing a location, consider aspects such as transit availability, market accessibility, and compatibility for your type of business.
Documents submission to the DED
After choosing the name, activity and location for your company, you need to submit all the required documents to DED for pre-approval.
Obtain a trade license for your company
Once DED approves the trade name and activity, you can get a trade license for your company and other legal documents such as Memorandum of Association, Certificate of Incorporation, Tenancy agreement, labor cards, share certificates, VISAs etc.
Read More: UAE Citizenship
Documents Required to Register an LLC in Dubai
The following documents DED require to register an LLC in Dubai are:
- Application Certificate from DED
- Business Plan
- Passport or valid identity cards
- Passport of a local sponsor
- Copy of Emirates IDs
- Memorandum of Association
- No Objection Certificate if the shareholder is working in a UAE company
- Tenancy contract
If you have any inquiry regarding LLC setup in Dubai, contact OnDemand International’s executive.
Read More: UAE Golden Visa
Benefits for LLC Formation in Dubai
The significant benefits for LLC setup in Dubai are:
- Tax Advantages: LLCs in the UAE enjoy complete tax exemption, with no taxes levied on income, making it a highly attractive structure for businesses.
- Swift Setup: Forming an LLC in Dubai is a fast and straightforward process. You can register your business with the Department of Economic Development (DED) in as little as 90 minutes. While the typical setup takes four to five days, unforeseen challenges like government approvals may cause delays.
- Diverse Business Activities: With a DED license, you can operate in any of the 2,000 approved sectors, ranging from agriculture to tourism and beyond.
- 100% Foreign Ownership: Many business categories no longer require a UAE National Sponsor, enabling full foreign ownership of non-free zone companies.
Cost for LLC Company Formation in Dubai, UAE
The cost for LLC company formation starts at approximately AED 18,500. However, if you choose a foreign or non-Arabic trade name, expect an additional charge of AED 2,000. When it comes to renewing your LLC license, the fees typically range from AED 8,000 to AED 15,000, depending on various factors.
While the cost for setting up an LLC across most economic sectors remains fairly consistent, several variables can impact the final price. These include the number of visas you apply for, the type of medical insurance you select, the need for additional government approvals, and your choice of a foreign trade name.
Offshore Company Setup in Dubai, UAE
A Dubai international corporation is a prominent business structure in the UAE and around the world. It is classified as a white list country, meaning it is not included in any authorized FAFT ‘tax shelter black lists.’ As a result, an offshore business based in Dubai will have an internationally recognized and acknowledged position. However, a non-UAE citizen firm, a Dubai international corporation is a stamp duty UAE corporate body that is located in the UAE free trade zone. A Dubai corporation registration might be advantageous to an entrepreneur because it offers numerous benefits such as stamp duty registration, safety, privacy, and distinctive culture.
Read More: Jebel Ali Free Zone, Ajman Ali Free Zone, Dubai Silicon Oasis
Conclusion
Starting a business in Dubai is streamlined with expert assistance from OnDemand International, UAE’s leading business setup firm. Since 2010, we’ve supported over 1200+ entrepreneurs with quick, reliable, and cost-effective LLC formation packages. Beyond setup, we offer comprehensive services including tax preparation, legal counsel, and HR support.
FAQ’s
Yes, a non-resident set up an LLC in Dubai, UAE. However, there are specific requirements and steps involved:
- Local Sponsor/Partner: For a mainland LLC, a local sponsor or partner (UAE national) must hold at least 51% of the company’s shares. This is not required for businesses set up in free zones.
- Free Zones Option: Non-residents can fully own an LLC if it is established in one of Dubai’s free zones. Free zone companies offer 100% foreign ownership, and the setup process is generally more straightforward for non-residents.
- Business Activity: The nature of the business activity will influence whether it should be set up in the mainland or a free zone.
- Documentation: Non-residents need to provide a valid passport, proof of residence, and additional documents depending on the business type and location.
- Legal and Regulatory Compliance: Adhering to UAE regulations, including obtaining necessary licenses and permits, is essential.
- Visa Requirements: Non-resident business owners may need to apply for a UAE residence visa if they plan to stay in the country.
A Limited Liability Company (LLC) in Dubai normally requires a minimum share capital of AED 300,000. However, the amount may differ according to the business activity and jurisdiction. Free Zone Company: Free zones in Dubai sometimes do not have strict minimum capital requirements.
The required documents you need to register your limited liability company in Dubai include:
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- Application Form
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- Company name reservation
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- Memorandum of Association
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- Article of Association
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- Shareholder’s passport
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- Local sponsors
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- Proof of business address
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- No objection certificate
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- Trade license
