Dubai has the world’s 30th largest economy due to its matchless advantages to investors. For instance, no income tax, world-class infrastructure, 100% business ownership, and a strategic location. 

A Limited Liability Company (LLC) is the most common type of business in the UAE. Today’s guide will discuss the step-by-step guide for LLC company formation in Dubai and a detailed look at the required documents for LLC company formation in Dubai.

So, buckle up your sleeves and explore with us. 

What is an LLC Company in Dubai?

An LLC Company in Dubai is similar to a Limited Liability Company in other countries. It’s a popular business structure for those looking to operate in Dubai. There can be anywhere from two to fifty shareholders, and each shareholder is only on the hook for their portion of the company’s debts if things go south. This limited liability protection is a major perk.

Another advantage of an LLC in Dubai is the freedom to trade throughout the United Arab Emirates and the wider Gulf Cooperation Council. There’s also no minimum amount of money you need to invest upfront to get started, which can be appealing for new businesses. 

It also offers taxation and some management flexibility, and that’s exactly the reason why LLC is the most common type of business in the UAE. 

However, setting up and maintaining an LLC company in Dubai does involve fees, but the exact cost depends on the specific business activities you plan to undertake.

What are the legal requirements For an LLC company formation in Dubai?

A business license is required for an LLC company formation in Dubai. It is usually issued by the Department of Economic Development in UAE, also known as DED.

Once you acquire your license, you are accountable to DED for the business activities you perform here and for the legal structure of your LLC company in Dubai. However, it has no legal or minimum capital requirements, so that you can choose your budget. You will also benefit from minimum or zero tax with liability protection under LLC. 

So, all these minimum requirements make LLC a popular business activity in Dubai.

What Documents Do You Require to Open an LLC in Dubai?

Before we dig into the step-by-step process of an LLC company formation in Dubai, here is the list of documents you need to have in hand for hassle-free licensing approval. 

1. Certified copies of passports for all shareholders and managers.
2. Two passport-sized photographs for each shareholder and manager (if applicable).
3. Residence visa and entry permit details (if applicable).
4. A completed registration application form from the Department of Economic Development (DED).
5. Trade name reservation approval.
6. Memorandum of Association (MOA) duly attested by a public notary.
7. The relevant government departments have attested to the tenant contract for your office/warehouse.
8. A location plan for your office/warehouse.
9. NOC (No Objection Certificate) from the current employer if a shareholder or manager has an existing UAE residence visa.
10. Professional or bank reference letters for each shareholder (depending on the formation agency).
11. A lease agreement for your acquired working space.

However, suppose you are in a hurry or don’t understand the legal complexities. In that case, you can also hire an expert advisor from Ignite Zone to make your paperwork as easy as possible. 

LLC Company Formation in Dubai Step By Step

Step 1:  Decide business activities 

The first step to forming your LLC company in Dubai involves clearly defining the business activities you plan to undertake. This is important because it will determine the licenses you’ll need to acquire later. The Department of Economic Development (DED) has a vast list of approved business activities, so take your time to choose the ones that accurately reflect your company’s operations.

Step 2: Choose a trade name

Once you’ve nailed down your business activities, it’s time to brainstorm a unique and catchy trade name for your LLC. Remember, the chosen name must comply with Dubai’s naming regulations. A quick internet search can help you with name availability checks to ensure your desired name isn’t already used.

Step 3: Find a Location 

Finding a suitable location for your business operations is another crucial step. Dubai offers a variety of options, from office spaces in business centers to warehouses in specific industry zones. While making your decision, we suggest considering certain factors like cost, proximity to suppliers or clients, and the type of workspace you’ll need for your day-to-day operations.

Step 4: Submit all documents to DED

With your business activities, trade name, and location locked in, you can move on to submitting all the necessary documents to the DED. This typically involves a mix of personal and company documentation. Passport copies for shareholders and the local service agent (if required), a Memorandum of Association (MOA), and a lease agreement for your office space are some of the key documents you’ll need to provide.

Step 5: The approval process

After submitting your application and documents, the DED will review everything to ensure it meets all the legal requirements. The approval process and timelines can vary depending on the complexity of your business activities. In some cases, you may need additional approvals from other authorities.

Step 6: Get your License

The final step involves obtaining your official business license. Once the DED grants approval, you must pay the necessary fees to receive your trade license. This license authorizes your LLC to operate legally in Dubai. 

Once you have your license, you can open a corporate bank account and officially launch your business in Dubai or UAE!

What is The Cost of an LLC Company Formation in Dubai?

Forming an LLC company in the UAE is profitable and has certain advantages; however, you must understand that there is also a licensing cost associated with the LLC in Dubai or UAE, which is comparatively high compared to the other types of business licenses in the UAE. 

Here is a general breakdown of it. 

• Government Fees include application fees, trade license fees, and DED registration charges. The exact cost depends on your chosen business activities and location. Generally, expect a range of AED 18,500 to AED 25,000 for core government fees.
• Local Service Agent: A new regulation allowing full foreign ownership is necessary, for you’ll likely need a local service agent to act as your legal representative. Their fees vary depending on the chosen agency and the complexity of your business setup.
• Business Activity Licenses: Some business activities require additional licenses from specific government entities. These licenses come with extra fees that can vary significantly.
• Visa Costs: If you plan to employ yourself or others, you must factor in visa application fees and medical insurance costs. The general cost of an employment visa for an LLC company in Dubai ranges from AED 5000 to AED 7000. Additionally, if you have any foreign investors, the investor visa could also cost around AED 4500 to AED 5250.
• Office Space: The cost of renting office space in Dubai can vary greatly depending on the location, size, and amenities offered. Opting for a virtual office can reduce these costs.
• License Renewal Cost: Last but not the minor cost is license renewal in case of expiry. It will be Around 10,000 to 15,000 dirhams.

So, by considering all these factors, forming an LLC company in Dubai typically costs between AED 20,000 and AED 30,000. However, this is just an estimate, and the final cost can be higher or lower depending on your specific circumstances.

Get an Accurate Quote:

You can contact our business formation specialist in Dubai to get a more precise idea of the costs involved. They can assess your needs and provide a tailored quote considering your chosen business activities, location, and any additional services you might need.