The process of LLC company formation in Dubai begins at the Department of Economy and Tourism (DET) and takes 3-5 weeks. The most popular mainland company structure for foreign investors is the Limited Liability Company.
It provides full access to the UAE market, limits the liability of each shareholder to their capital contribution, and, under Federal Decree-Law No. 26 of 2020, permits 100% foreign ownership in most business activities. No Emirati sponsor. No 51% local partner.
What Is a Limited Liability Company in Dubai?
A limited liability company Dubai is a legal structure in which each shareholder is only responsible for his or her share of the company's capital, and not for the debts or obligations of the company in excess of that amount.
It can have 2 to 50 shareholders, engage in any legal business activity in the UAE, sponsor visas for its owners and employees, and obtain a trade licence from the DET.
It is the preferred structure for small and medium businesses, trading companies, consultancies, and any foreign investor seeking direct access to the UAE domestic market.
100% Foreign Ownership: What Changed and What Still Applies
Before June 2021, the UAE required a UAE national to hold at least 51% of any mainland LLC. Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law and removed this requirement for the vast majority of commercial and industrial activities.
Foreign investors can now own 100% of a mainland company formation Dubai LLC without a local partner. The only exceptions are limited sectors (oil, gas, defence, certain utilities) which continue to be covered by the Positive List under the Ministry of Economy.
For most business activities, you need no Emirati sponsor. It is still possible to appoint a Local Service Agent (LSA) for a sole establishment professional licence, but an LSA does not own the establishment and receives a flat annual fee, not a share of profits.
LLC Setup Cost in Dubai:
| Cost Item | Estimated Range (AED) |
|---|---|
| Trade licence fee | 10,000 – 20,000 |
| Trade name reservation | 1,000 |
| MOA notarisation | 1,000 – 3,000 |
| Document attestation and translation | 1,500 – 3,500 |
| Ejari office lease (per year) | 12,000 – 60,000+ |
| DET registration fees | 3,000 – 7,000 |
| Investor visa (per person) | 4,000 – 7,000 |
| Establishment card | 2,000 – 3,500 |
Based on the number of visas and office location, the cost of a basic LLC company formation in Dubai with one investor visa for the first year can range from AED 35,000 to AED 75,000.
Documents Required for LLC Company Formation in Dubai:
| Document | Notes |
|---|---|
| Passport copies (all shareholders) | Certified copies |
| Emirates ID (UAE resident shareholders) | If applicable |
| NOC from employer (employed UAE residents) | If applicable |
| Notarised MOA | Signed by all shareholders |
| Ejari tenancy contract | Physical office only |
| DET initial approval letter | From Step 3 |
| Bank reference letter | Some activities require it |
| Board resolution (corporate shareholders) | If any shareholder is a company |
LLC Company Formation in Dubai: Step-by-step
Step 1: Select Your Business Activity
DET issues licences for over 2,000 activities. The type of activity you choose will determine the type of licence (commercial, industrial, professional, or tourism) and whether further ministry approvals are required.
Step 2: Reserve A Trade Name
The name should be unique, non-offensive, and without religious or political connotations. Use of your own name requires the use of your full name (first and last name). DET will not accept names that are already registered.
Step 3: Submit Initial DET Application
Submit activity selection and trade name for initial approval from DET. This will take 1-3 working days and is necessary for further action.
Step 4: Prepare And Notarise The MOA
The Memorandum of Association defines the structure of ownership, information about shareholders, scope of activities, and internal regulations. It should be signed by all shareholders and notarised by a UAE-certified notary.
If any shareholder is a foreign company, their parent company documents need separate attestation and Arabic translation.
Step 5: Obtain A Physical Office And Register Ejari
Mainland LLCs are required to have a physical office with an Ejari-registered tenancy contract. The Ejari registration is granted by the Real Estate Regulatory Authority.
The prices of offices are very different, ranging from AED 12,000 per year for a small business centre desk to AED 60,000+ for a standalone office.
Step 6: Finalize Documents And Pay Licence Fees
Once the initial application is approved and the notarised MOA and Ejari contract are in place, submit the final application to DET.
Pay the trade licence fee to receive your LLC trade licence Dubai and Certificate of Incorporation.
Step 7: Register With Other Authorities If Necessary
Some activities require additional approvals beyond DET, such as municipality permits for food-related businesses, Dubai Health Authority for health care, and KHDA for education. The additional registrations vary depending on your activity type.
Step 8: Open A Corporate Bank Account And Apply For Visas
The most important document for opening a corporate bank account is a valid LLC company formation Dubai trade licence.
The MoHRE and the General Directorate of Residency and Foreigners Affairs (GDRFA) process Visa applications (investor, employment, and family).
Corporate Tax and VAT for Dubai LLCs:
Under Federal Decree-Law No. 47 of 2022, a limited liability company Dubai will be liable to UAE corporate tax. The 9% rate is for taxable profits exceeding AED 375,000. Profits in that range are taxed at 0%.
Profit or not, companies must register with the Federal Tax Authority for corporate tax.
VAT registration is mandatory for any business that makes taxable sales of more than AED 375,000 in any 12 months.
LLC annual renewal Dubai for the trade licence is also mandatory; the fee for renewing the trade licence is the same as the original licence fee.
How Skyways CSP Handles Your LLC Company Formation in Dubai:
From choosing your business activity and trade name to DET submission, drafting and notarisation of MOA, Ejari office solutions, opening a corporate bank account, and visa applications, Skyways Corporate Services Providers handles the entire process of LLC company formation in Dubai.
Our team also includes corporate tax registration, VAT registration, PRO services, and annual trade licence renewal. The advantage of working with us is that all the touchpoints are managed in one process, rather than having to deal with each authority individually.
For a complete cost and time estimate for your activity and visa requirements, contact Skyways CSP.
FAQs:
Is there a need for a local sponsor to establish an LLC company in Dubai?
What is the time taken for the LLC company formation in Dubai?
What is the minimum share capital for a Dubai LLC?
Is it possible to sponsor visas for employees through an LLC?
What is Ejari and why do LLCs need it?
Conclusion:
Foreign investors can enjoy 100% market access, 100% ownership, and a simple legal structure with limited liability in the UAE through LLC company formation in Dubai. The process is handled through DET, takes 3-5 weeks, and costs AED 35,000 – AED 75,000 in year 1, depending on office and visa requirements.
Skyways CSP is in charge of the entire process of setting up a limited liability company Dubai. Get an itemised, clear cost estimate from Skyways before you start.
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