LLC Company Formation Service In Dubai - UAE
LLC Company Formation in Dubai : In Dubai, rules stipulate that the minimum number of shareholders for a limited-liability company (LLC) is two and the maximum 50. The liability of shareholders varies depending on their shares in the capital. All Business activities exempting insurance, banking, or money investment conducted by LLC.
Starting a LLC Company in Dubai involves multi step registration process. The Department of Economic Development (DED) is authorized to issue licenses for all mainland (onshore) UAE legal entities which are also governed by the UAE Commercial Companies Law (CCL). Moreover, Foreign investors setting up businesses in mainland UAE have an edge over businesses in Free Zones as there is no territorial restriction, business activities or the location of offices/premises. In other words, a mainland company has the freedom to trade anywhere in the UAE or wider Gulf Cooperation Council (GCC) states, including all the Free Zones & an extensive range of real estate options to choose from. Business Setup in Dubai doesn’t take much time while dealing with Black Swan.
Limited Liability Company LLC Company in Dubai UAE
Limited Liability Company (LLC) which is standard type of UAE mainland company licensed granted via DED to function in UAE. For instance, DED also classifies and regulates the types of economic activity by the LLCs.
Advantages of LLC over Free Zone companies:
- Can trade anywhere in the UAE or GCC
- No restriction on real estate ownership
- No restriction on visas.
- No minimum share capital requirements
- Need not pay the standard 5% customs duty on imported goods
Silent Partner in Dubai LLC Company
The local UAE sponsor in many Dubai Limited Liability Companies remain as a “silent partner”. Moreover, an annual “sponsorship fee” paid to the local UAE sponsor for giving up management control of the company to the foreign investor.
Documents required for Dubai LLC Company Initial Approval
- Registration and licensing application, as well as proof of reserved trade name.
- Photocopy of applicant’s passport (together with residence permit / visa details for non-GCC states nationals).
- Photocopy of applicant’s naturalization identification for UAE nationals only.
- No-objection letter from the applicant’s current sponsor for non GCC nationals.
- Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
- Permission from the court to practice business, for applicants under 21 years.
- Approval issued by other Government authorities according to the type of activity.
- The Company’s Board of Directors resolution to subscribe to the new company if the partner is an existing corporate entity in UAE or abroad (the resolution must be attested by UAE embassy / consulate or by a GCC state embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).
Documents required after getting the Initial Approval
- Initial Approval receipt
- All documents submitted before in order to get the Initial Approval.
- Photocopy of office lease including the plot number.
- Original photocopy of the Memorandum of Association duly authenticated by the Notary Public.
- Contract of Limited Liability Company
- If the partner is an existing corporate entity in UAE or abroad the
- Memorandum of Association and the Commercial Register Certificate must be attested by UAE embassy / consulate or by a GCC state embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).
F.A.Q LLC Company Registration in Dubai, UAE
- What is an LLC company in Dubai?
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An LLC (Limited Liability Company) is a type of business entity in Dubai where the liability of shareholders is limited to their shares in the company. It's the most common structure for businesses in the UAE.
- Can foreigners own 100% of an LLC in Dubai?
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Yes, since recent reforms, foreigners can now own 100% of an LLC in most industries in Dubai, except for some strategic sectors.
- What are the main advantages of registering an LLC in Dubai?
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Key advantages include: Full access to the UAE market. Flexibility in business operations. Limited liability protection. Eligibility for investor visas.
- How many shareholders are required for an LLC in Dubai?
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An LLC requires a minimum of 1 shareholder and a maximum of 50 shareholders.
- Is there a minimum capital requirement for LLC registration in Dubai?
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There is no mandatory minimum capital requirement, but the capital must be stated in the Memorandum of Association (MOA).
- Do I need a local sponsor for an LLC in Dubai?
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Previously, a local sponsor (UAE national) was mandatory for majority ownership. However, reforms now allow 100% foreign ownership in most sectors.
- What are the required documents for LLC registration in Dubai?
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The key documents include: Passport copies of shareholders and managers. Emirates ID (for residents). Trade name reservation certificate. MOA and Articles of Association. Initial approval from authorities.
- How long does it take to register an LLC in Dubai?
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The registration process usually takes 1–2 weeks, depending on the complexity and documentation.
- Can an LLC in Dubai operate in all industries?
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An LLC can operate in most industries, but certain sectors (e.g., banking, insurance) require special licenses.
- What is the cost of registering an LLC in Dubai?
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The cost typically ranges between AED 20,000 and AED 30,000, depending on factors like trade name, licensing fees, and other government approvals.
- Do I need a physical office for LLC registration in Dubai?
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Yes, a physical office or virtual office is mandatory as part of the business setup process.
- Are there tax benefits for LLCs in Dubai?
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Dubai offers several tax benefits, including 0% corporate tax on most profits and no personal income tax.
- Can an LLC sponsor visas for employees and shareholders?
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Yes, an LLC can sponsor employment visas for its staff and residency visas for shareholders.
- What is the role of the Department of Economic Development (DED) in LLC registration?
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The DED is the main authority that approves and oversees LLC registrations in Dubai.
- Can I convert my LLC into a free zone company later?
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No, LLCs and free zone companies are separate entities. You cannot directly convert an LLC into a free zone company, but you can establish a new entity in a free zone.
- Do I need to renew my LLC license annually?
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Yes, all LLCs in Dubai must renew their trade licenses every year to continue operating legally
- What happens if my LLC is found non-compliant with regulations?
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Non-compliance can lead to fines, license suspension, or, in severe cases, business closure.
- Can I register an LLC remotely in Dubai?
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Yes, Dubai allows remote registration for LLCs, provided the required documents are submitted electronically or through authorized agents.
- What industries are most suitable for LLC formation in Dubai?
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LLCs are ideal for trading, retail, construction, real estate, and other industries requiring direct market access.
- Who can help with LLC company registration in Dubai?
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Professional business setup firms, like Black Swan, can assist with the entire LLC registration process, ensuring a smooth experience.