The UAE continues to be the leading destination to conduct business, ranking number one globally for the fourth consecutive year by the Global Entrepreneurship Monitor (GEM) 2024-2025 report.
With an unparalleled infrastructure system, strategic location to access the markets in Asia, Africa and Europe, and business-friendly policies, Dubai is the ideal place for any UAE or foreign national looking to establish a Limited Liability Company (LLC).
LLC in Dubai: Features and Benefits
An LLC is one of the most common and preferred business formations for entrepreneurs and foreign companies looking to set up business in Dubai. An LLC in Dubai offers:
- Separate Legal Identity: The company assets (and liabilities) are separate from its owner’s personal assets.
- Limited Liability: The liability of the shareholders is limited to their contribution or investment in the LLC as set out in the Memorandum of Association (MoA)
- Shareholder Composition: An LLC in Dubai can have anywhere between 02 and 50 shareholders.
- Minimum Capital Requirements: Although there are specific minimum investment or capital requirements for some business activities, there is no minimum capital requirement for registering an LLC in Dubai, as long as the contribution can meet the business needs.
- Corporate Tax Exemptions: Qualifying LLCs in Dubai’s free zone enjoy zero corporate tax, and even mainland LLCs with profits below AED 375,000 are exempt from taxes.
- 100% Repatriation of Capital and Profits: LLCs in Dubai’s free zone can repatriate profits to foreign jurisdictions without any restriction.
- 100% Foreign Ownership: While earlier, an LLC could only have 100% foreign ownership if it were registered in a free zone, now 100% foreign ownership is permitted for LLCs in Dubai’s mainland in 122 economic activities across 13 sectors.
Note: Foreign companies must comply with Federal Decree-Law No. 32 of 2021 and Cabinet Resolution No. 55 of 2021 when investing in Dubai’s mainland.
Which Laws Govern LLC Formation in Dubai?
Along with free zone, mainland and sector-specific laws that regulate the operation of an LLC in Dubai, the primary federal law for the formation of an LLC in Dubai is the Federal Decree Law No. (32) of 2021 on Commercial Companies.
Important: Federal Decree No. (2) of 2015 has been replaced by the Federal Decree Law No. (32) of 2021.
Registering an LLC in Dubai: Documents Required
To start an LLC in Dubai in 2025, the following documents will be required:
- Passport and UAE Resident Visa Copies: Required for all directors, shareholders, and partners of the LLC.
- Emirates ID: This is one of the most important documents and is required for identification purposes.
- Details of Local Sponsor: If the LLC is being formulated with a UAE national as a shareholder, the details of the local sponsor, including a copy of their UAE passport, are necessary.
- Memorandum of Association (MoA): The MoA should comply with the Dubai company law requirements and include details of the LLC.
- Lease Agreement: For registering an LLC in Dubai, typically, a physical office space is required. Consequently, a lease agreement for renting an office or commercial space is a mandatory requirement.
- Business Plan: To undertake most LLC business activities in Dubai, a business plan is necessary, which should outline the business objectives.
- Business License and Approval: Along with securing the requisite permission from the Dubai Department of Economic Development (DED), approvals from other local authorities (depending on the business activity) are required.
- Passport-size Photographs: The photographs must be recent and meet the LLC business license rules.
- Name Reservation: A trade name may be reserved even before the initial approval through the Invest in Dubai online portal.
Get Expert Legal Guidance: Contact Kayrouz & Associates’ Corporate & Commercial Law Team for a free consultation to start your LLC in Dubai incorporation process.
Setting up an LLC in Dubai: Step-by-Step Process
To set up an LLC in Dubai, the following steps should be followed to avoid delays, additional costs, and legal risks.
Choose the LLC’s Jurisdiction
An LLC may be registered in either the mainland of Dubai or a free zone. Since both avenues offer distinct advantages and expose an LLC to separate legal obligations, selecting the proper jurisdiction is essential for sustained growth, effective tax planning, and engaging in business activities.
Select the LLC’s Proposed Business Activity
In Dubai, there are specific licenses, investment and approval requirements depending on the type of business activity the LLC plans to engage in. You can choose trade, consulting, or any other business activity.
Crucial Note: The type of business activity would determine whether a UAE national sponsor is needed or not.
Start the LLC’s Incorporation Process
The primary stages in this step include choosing the name of the LLC, applying for the licenses of the LLC with the relevant Dubai local authorities, and drafting, signing and executing the MoA. Shareholders and entrepreneurs should review the specific license requirements and fees for trading, industrial, professional and consulting activities before registration.
Obtain Office Space
For registering an LLC in the mainland of Dubai, renting a physical office space is a must. However, in some free zones, an LLC may be eligible to continue with a virtual office.
Apply for Trade License
After the previous steps are complete, the required documents can be submitted to apply for an LLC trade license. This license will authorise the LLC to operate in the UAE mainland or free zone (as applicable) for the specified business activities.
Open a Corporate Bank Account
A corporate bank account can be opened for the LLC to carry out corporate business transactions.
Warning: If you are operating the LLC on the mainland of Dubai, you must register with the Dubai Chamber of Commerce after business approval is granted.
Expert Legal Help: Book a consultation with Kayrouz & Associates’ Business Formation and Incorporation team to streamline your LLC formation process in Dubai.
LLC in Dubai: Costs and Tax Obligations
The cost of starting an LLC in Dubai can vary depending on the jurisdiction, type of business activity, and the applicable fees of the Dubai government and local authorities. Further, the number of visas that the LLC applies for can also increase the cost.
It is advised to consult a Dubai LLC setup attorney before starting the incorporation process to get a transparent and customised cost schedule.
Tax Implications for LLC in Dubai
Dubai has a competitive tax regime, with the imposition of zero corporate tax for qualifying LLCs in most free zones, and a 9% corporate tax on certain LLCs operating in the mainland of Dubai.
Please note: Individuals looking for a detailed guide on the UAE Corporate Tax Process can refer to Kayrouz & Associates’ insight on UAE Corporate Law Changes and Compliance Trends in 2025.
How Kayrouz & Associates Help Simplify LLC Registration in Dubai From Start to Finish?
LLC registration and formation in Dubai is just the initial process of obtaining approvals, securing licenses, and setting up your LLC in Dubai.
Kayrouz’s & Associates’ Corporate and Commercial Team can not only streamline and ease Business Incorporation in Dubai, but also assist in continued compliance and sustained business growth with our following teams and practices:
- Company formation & Restructuring
- Corporate records and compliance issues
- Commercial financing and agreements
- IP rights and patents
- Shareholder agreements and disputes
- Employment agreements and contracts
- Employment-based immigration law
- Tenancy and lease agreements
- Real estate transactions and conveyancing
Book a consultation or visit Kayrouz & Associates’ strategically positioned offices in Dubai, Abu Dhabi and Beirut to start your LLC formation process in Dubai
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