An LLC in Dubai is a Limited Liability Company, and many entrepreneurs choose it because the owners have limited financial risk. The government allows foreigners to own 100% of an LLC in Dubai mainland, but free zone rules may differ.
Why Should You Start an LLC in UAE?
Starting an LLC in Dubai offers many benefits. First, you get full ownership in mainland areas. Second, Dubai has zero taxes on personal income. Third, the process is straightforward if you follow the right steps.
Step 1: Decide Your Business Activity
Before you register an LLC in UAE, you must select your business activity. The Department of Economic Development (DED) lists approved activities. Then, you choose one that matches your business type.
Step 2: Choose a Trade Name
Next, pick a unique trade name for your Dubai LLC. The name must follow UAE naming rules. Also, avoid offensive or religious words. Once you decide, you must get initial approval from the DED.
Step 3: Find a Local Service Agent (If Required)
If you set up an LLC in UAE mainland, you need a local service agent (LSA). The LSA does not own shares but helps with government paperwork. However, free zones do not require an LSA.
Step 4: Apply for Initial Approval
After choosing a name, submit documents for initial approval. The DED reviews your application. Then, they confirm if you can proceed with the Dubai LLC formation.
Step 5: Draft Your Memorandum of Association (MOA)
An MOA is a legal document for your Limited Liability Company in Dubai. It includes business details, partner shares, and company rules. You must notarize the MOA at a UAE notary public.
Step 6: Lease Office Space
Every LLC in Dubai needs a physical office address. You can rent space in a business center or free zone. Some free zones offer flexi-desk options for cost savings.
Step 7: Submit Documents for Final Approval
Now, submit all required documents to the DED. These include your MOA, lease agreement, and passport copies. Once approved, you pay fees and receive your business license.
Step 8: Register for VAT (If Needed)
If your LLC in Dubai earns over AED 375,000 yearly, you must register for VAT. The Federal Tax Authority (FTA) handles VAT registration.
Step 9: Open a Corporate Bank Account
Finally, open a business bank account for your Limited Liability Company in Dubai.. Banks require your license, MOA, and shareholder details. Then, you can start business operations.
How Much Does It Cost to Start an Limited Liability Company in Dubai.?
The cost of forming an LLC in Dubai depends on your business type. Mainland fees range from AED 15,000 to AED 50,000, while free zones may cost less. Always check updated fees before applying.
How Long Does It Take to Set Up an Limited Liability Company in UAE?
The Dubai LLC setup process takes 7 to 15 days if all documents are ready. Delays happen if paperwork is incomplete.
Can a Foreigner Own 100% of an LLC in Dubai?
Yes, foreigners can fully own a Dubai LLC in mainland areas. However, some activities may need an Emirati partner. Free zones allow 100% foreign ownership without restrictions.
What Are the Key Documents Needed for an LLC in Dubai?
You need:
- Passport copies of shareholders
- Initial approval certificate
- Lease agreement
- MOA
- Business license application
What Are the Best Free Zones for an LLC in Dubai?
Popular free zones for Limited Liability Company in UAE formation include:
- DMCCÂ (Dubai Multi Commodities Centre)
- DIFCÂ (Dubai International Financial Centre)
- JAFZAÂ (Jebel Ali Free Zone)
Final Tips for Starting an Limited Liability Company in UAE
First, research your business activity. Second, follow all legal steps carefully. Third, hire a business consultant if needed. Now, you are ready to launch your LLC in Dubai successfully!
For professional assistance with business law services and related legal matters, contact Osama Khalil, Lawyer & Legal Consultant. You can reach him at:
Phone: +92-316-1829946 | +92-307-2732223
Email: contact@osamakhalillaw.com | contact@khalilassociates.org