LLC Company Formation in Dubai: A Complete Guide for 2025

LLC company formation in Dubai

Dubai has rapidly evolved into one of the world’s leading business hubs. With its investor-friendly policies, excellent infrastructure, and tax benefits, it’s no wonder entrepreneurs from around the globe choose to establish their business in the UAE. Among the most popular legal structures is the LLC (Limited Liability Company).

If you're planning to start a business in the UAE, this comprehensive guide on LLC company formation in Dubai will walk you through everything you need to know.

What is an LLC Company in Dubai?

A Limited Liability Company (LLC) is the most common business structure for entrepreneurs and investors in Dubai. It is a flexible and scalable structure that allows multiple shareholders while offering liability protection.

An LLC in Dubai:

• Can be formed with 2 to 50 shareholders

• Limits liability to each shareholder’s capital contribution

• Allows for 100% foreign ownership in most activities (after the new UAE Commercial Companies Law reforms)

---

Key Benefits of LLC Company Formation in Dubai

1. Access to the UAE Market

An LLC can freely operate anywhere in Dubai and across the UAE  unlike free zone companies that are restricted to their zones unless they appoint a local distributor.

2. Eligibility for Government Projects

Only LLCs (and other mainland entities) can bid for government contracts and tenders.

3. 100% Foreign Ownership Allowed

Thanks to reforms, 100% foreign ownership is allowed in most sectors no need for a local Emirati partner for many business activities.

4. Visa Eligibility

An LLC allows the business owner(s) to apply for investor visas and employment visas for staff.

5. Bank Account Opening

LLCs are considered reliable by UAE banks, making it easier to open corporate bank accounts and access credit.

---

Step-by-Step Guide to LLC Company Formation in Dubai

Here’s how to form an LLC in Dubai in 2025:

Step 1: Choose Your Business Activity

Select your business activity from the list provided by the Department of Economic Development (DED).

Step 2: Reserve a Trade Name

Reserve a unique trade name for your business. Make sure it:

• Is relevant to your business

• Doesn’t contain offensive or religious words

• Complies with DED naming guidelines

Step 3: Apply for Initial Approval

Submit your documents to DED for initial approval. This shows that the UAE government has no objection to your business activity.

Step 4: Draft the MOA

Create a Memorandum of Association (MOA) that outlines the shareholding structure and business objectives. This must be notarized.

Step 5: Rent Office Space

Lease a physical office or virtual office and obtain the Ejari certificate (tenancy contract), which is required for license issuance.

Step 6: Final Approval & Payment

Submit all final documents, pay the government fees, and obtain your Dubai LLC license.

Documents Required for LLC Formation in Dubai

• Passport copies of all shareholders

• Visa copy or entry stamp for foreign partners

• Proposed company name

• Initial approval certificate

• Memorandum of Association (MOA)

• Ejari tenancy contract

• NOC from current sponsor (if applicable)

Cost of LLC Company Formation in Dubai

The cost varies depending on the business activity, number of shareholders, and office location. On average:

Type of Cost	Estimated Amount (AED)
DED License Fees	10,000 – 15,000
Ejari/Office Rent	10,000 – 30,000
MOA Notarization & Legal Fees	2,000 – 4,000
Trade Name Reservation	620
Final License Issuance	2,000 – 3,000
Total Approximate Cost	20,000 – 35,000+

Popular Business Activities Under LLC in Dubai

• General Trading

• Restaurants and Cafes

• Real Estate Brokerage

• Construction and Contracting

• E-commerce Business

• IT & Software Services

• Consulting and Training

• Event Management

Taxation for LLCs in Dubai

Dubai offers a very business-friendly tax regime:

• 0% personal income tax

• 0% corporate tax for businesses earning below AED 375,000

• 9% corporate tax on profits above AED 375,000 (as of June 2023)

• 5% VAT applicable for qualifying businesses

Foreign Ownership Rules in 2025

Under the UAE’s new Commercial Companies Law:

• Most LLC activities now allow 100% foreign ownership

• Some activities (strategic sectors) still require local Emirati ownership

• For professional services, a Local Service Agent (LSA) may still be needed

Check your specific business activity to see if full ownership applies.

How Long Does It Take?

The LLC setup process can take 7 to 14 business days, depending on approvals, documentation, and the nature of the business.

Why Choose Dubai for Your LLC Company?

• Strategic location between East and West
• World-class infrastructure and logistics
• Business-friendly policies
• Multi-currency banking
• International reputation and ease of doing business
• Access to skilled talent pool

Final Thoughts

Forming an LLC company in Dubai is one of the smartest business decisions you can make if you're looking for long-term growth in the UAE. With the advantage of 100% ownership, limited liability, and full access to the UAE market, it offers the ideal blend of flexibility and control for investors.

Whether you’re a solo entrepreneur, a small business, or an international investor, Dubai provides the tools and environment to succeed.