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LLC Company formation in Dubai

The Complete Guide for LLC Company Formation in Dubai

Many investors and business owners consider the UAE as a top destination. For this reason, they want to carry out the LLC Company formation in Dubai so they can begin start making businesses in this place.

However, it’s not an easy process. There are many requirements you have to comply with as well as gather the necessary documents and pay the fees. If you don’t know how to set up a company you may need assistance in this matter.

In this article, you’re going to learn everything you need to know about how to set up an LLC company in Dubai. In addition, you’re going to gain understanding on how a third-party can be the best solution to start your operations in the UAE. Let’s observe:

  • The complete guide for LLC formation in Dubai
  • What is an LLC Company?
  • Why should you set up an LLC in Dubai?
  • What are the key steps to form a company in Dubai?
  • Which costs should you consider regarding company formation?
  • What are the documents required to set up an LLC in Dubai?
  • Which benefits can you get with an LLC?
  • How can Connect Group help you with company formation?

The Complete Guide for LLC Company Formation in Dubai

When it comes to the top cities of the Middle East, Dubai is one of the most affluent and cosmopolitan ones. For this reason, it’s an attractive destination for foreign investors. In addition, Dubai is located as the perfect place that connects the West and the East.

Many companies that are considering expanding their operations want to carry out the LLC Company formation in Dubai so they can get all of the benefits of entering the UAE market.

There are many ways of starting a business in Dubai, and an LLC is highly attractive for business owners. In fact, it’s one of the most common forms of business in this country.

What is an LLC Company?

If you want to set up a corporation in the UAE, you first have to decide which type of legal entity is the best for you. As you probably know, there are several jurisdictions in the UAE, and you can choose in which one of them you want to establish your business.

An LLC is a Limited Liability Company and it’s a standard type of company that you can set up in the UAE Mainland. It’s preferred by many foreign investors because the liabilities of the partners are limited to their shares in the business capital.

How Many Shareholders Does an LLC Need?

In terms of shareholders, an LLC can have a minimum of 2 and a maximum of 50. However, if you’re a foreign investor, to create the company you need to have a local agent known as a sponsor. This sponsor has to own the 51% of the business. In this regard, it’s important to choose the partner wisely.

Nevertheless, the local agent usually won’t be involved in the business but it can help you handle the paperwork related with ministries and the government.

What can an LLC do?

If you consider carry out the LLC Company formation in Dubai you must know that you can carry business under the LLC’s name. You get a TIN (tax identification number) and it’s possible to open a bank account.

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As an owner of an LLC you have flexibility to carry out your business anywhere in the UAE and GCC. For this reason is the preferred kind of entity for foreign investors.

Why Should You Set up an LLC in Dubai?

Dubai is a top destination that you should consider if you want to expand your business. There are many reasons to carry out the LLC Company formation in Dubai so you can focus on your business growth.

Access to the UAE Economy

Do you want to enter the UAE market? If so, an LLC in Dubai offers you unrivalled access to the entire country as you’re able to perform businesses anywhere in the UAE. It means that you can trade anywhere, as well as in the GCC (Gulf Cooperation Council) states.

In addition, you won’t have any interference from your local partner, which is something that may bother several foreign investors.

No Minimum Capital

There is not a minimum capital required to form an LLC. However, keep in mind that you need a local sponsor that will hold 50% of the total shares.

Mutual Profit

Another great reason to create an LLC in Dubai is because these business entities are versatile and flexible in terms of mutual profit sharing. Since the local partner has 51% legal equity, the foreign investor will have a great edge.

What are the Key Steps to Form a Company in Dubai?

There are several steps you should take when you’re planning the LLC Company formation in Dubai. The DED (Department of Economic Development) is the one in charge of processing the applications for company formation.

Trade Name

The first step is to decide the suitable trade name for your LLC. Keep in mind that the name should relate to your business and it has to be unique. Additionally, your company name can’t contain offensive words and religious references.

Initial Approval

After getting the trade name approval you apply for the Initial Approval Certificate to the DED. It’s a very important step because it means that there are no objections from the authorities for you to create your LLC.

Local Sponsor

 You need to find a local agent that will be your partner for the LLC. Remember that the local agent will own 51% of the shares of your LLC so it’s important to look for a trustworthy sponsor.

Once you have found it, you both have to sign the Local Service Agent Agreement. This partner will be in charge of representing the business in terms of licensing and compliance.

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The next step is to draft the MOA which has to be formally translated and attested by a Notary Public.


It’s important to find an excellent location for your business that suits you in terms of nearness to the market, transportation, etc.

To create an LLC you must have a physical business office or warehouse since it is mandatory. Get your rental contract attested by submitting it to the authority in charge.

Business License

After completing all of these steps and getting the necessary documents, it’s time to submit your application to the DED. If you have done everything correctly and you get the approval, you then get your Trade License, Certificate of Incorporation, Share Certificate, and MOA of your LLC.

Final Recommendations

This is the final step and you can now begin your operations. However, before you have to comply with the following so you can have a great start:

  • Register your employees
  • Prepare your office
  • Get the visas, permits and necessary documents for your employees
  • Open your bank account

Which Costs Should you Consider Regarding Company Formation?

Once you know which steps you have to take for the LLC Company formation in Dubai, it’s also important to know how much you’re going to spend. Although the fees may vary there is an estimate on the total cost for setting up a company which is around the AED 24000.

Some of the most common costs you should consider are the following:

  • Fees for obtaining the commercial license
  • Market, name board, and service fees
  • General trading activity fees
  • Non-arabic trade name fees
  • Local fees
  • Economy ministry fees
  • Partner accommodation fees
  • Chamber of commerce fees

As you can see, there are several costs you have to take into account. If you opt for obtaining help from a third-party, you can have peace of mind since the agency will take care of everything.

In addition, you have to consider the costs for license renewal costs which have to be paid yearly. So, keep in mind that you have to include all of these expenses in your budget for company formation.

What are the Documents Required to Set up an LLC in Dubai?

When considering the LLC Company formation in Dubai it’s essential for you to gather the necessary documentation before initiating the process. By doing this you’ll be able to have everything ready once you start.

Among the documents you need to create your LLC in Dubai are the following:

  • Certified copies of all the shareholders’ passports and general managers and directors
  • An NOC letter issued by the sponsor (local agent) if the partner has a UAE residence visa (if applicable)
  • Registration application and Initial Approval from the DED
  • Trade name reservation
  • Attested Tenancy contract
  • Attested Memorandum of Association (MOA)
  • Professional or Bank Reference for shareholders

What Should you know about Notarization?

All the documents should be attested and notarized, from the applicant’s home country, and the UAE consulate. Therefore, it’s important to begin the notarization process as early as possible since it can take a long time. In addition, the foreign documents should be translated into Arabic, and this has to be carried out by an official translator.

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Another consideration you should have is that the government legal department makes a thoroughly review to verify the authenticity of the documents submitted. So, be sure to carry out all the notarization and attestation process for all of them.

Which Benefits can You Get with an LLC?

Once you know how to carry out the LLC Company formation in Dubai you may be interested in knowing which benefits you can get with this entity.

It’s the perfect entity for those foreign investors that want to get access to the wider UAE economy. Unlike a company formed in any of the Free Zones that are limited to carry out business only in said Free Zone, the LLC can carry out business in the entire UAE territory.

In addition, Dubai it’s a great place to create a business that flourish and thrive because it attracts millions of investors.

Let’s observe the benefits of an LLC as follows:

  • Visas: an LLC has no restrictions regarding the number of visas they can obtain for their employees.
  • Business activity: with an LLC you don’t have limits regarding the type of business activity you want to carry out. However, banking, insurance and investment are excluded.
  • Bank accounts: you have an easy access to open bank accounts, whether global or corporate. In addition, you can avail credit facilities.
  • Investor status: another great benefit you can get is that by being an investor of the LLC you get the investor’s visa. This allows you to get the investor status along with your family in the Emirate.
  • Customs: you won’t have to worry for paying the standard 5% custom duty on imported goods

As the owner of an LLC you get plenty advantages, among other ones we can name are the no restrictions on real estate ownership and you can commence branches.

How can Connect Group Help you with Company Formation?

Here in Connect Group we want to assist you with LLC Company formation in Dubai. Our network has skilled consultants that have enough experience helping investors establish their presence in the UAE.

Whether you’re a small, mid or large-size corporation, you can have your business in Dubai and you can take advantage of all the benefits of this place. Get started in a top strategic place that is the best connection between the West and the East and take your business to a whole new level.

The Complete Guide for LLC Company Formation in Dubai

Connect Group is here to help you at every step of your business journey in the UAE with ease.

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