LLC Company Formation in Dubai: A Comprehensive Guide (2025)

LLC Company Formation in Dubai: A Comprehensive Guide (2025)

Starting a limited liability company (LLC) in Dubai is a smart choice for many business owners and investors. The prominent place of Dubai, excellent infrastructure and strong economy makes it a top place to establish a business. An LLC also gives you benefits such as low investment requirements, more confidence than customers and opportunities to work with public agencies and other companies. In addition, Dubai provides 100% foreign ownership in both the mainland and free zones, or you can choose to work with a local if it suits your needs.

Before you start LLC, it is important to know the costs. These costs may vary depending on the type of business you have, where you want to specify it, and how many partners you have. The free areas of Dubai are attractive because they give you complete ownership of your company, no high-level income tax functions. But costs can vary between free zones and mainland, so it is a good idea to compare them to choose the best option for your business.

At Dubai Business Services Group, we create the process of setting up an LLC in Dubai simple and hassle-free. We help you in every way, from choosing the right type of company and getting your trade license. Our team takes care of legal needs, so you can focus on increasing your business.

With DBS Group, you have everything you need to set the LLC and enjoy all the opportunities that offer Dubai.

What Is an LLC in Dubai?

An LLC (Limited Liability Company) is a type of business that helps protect your personal property from the company's loans. This means that if there are financial problems in your business, your home, car and savings are protected. LLCs are popular because they are easy to setup and give you more options when talking about taxes. In Dubai and UAE, many entrepreneurs choose an LLC, as it provides both security and the opportunity to increase your business.

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How Much Does It Cost to Register an LLC in The Dubai Free Zone?

If you do not need a visa, registering an LLC in the Dubai free zone costs AED 12,500 only. This free zone allows you to start a business with more flexibility, such as using a virtual office. This is why it is cheaper than the mainland to establish a company in the free zone.

How Much Does It Cost to Open an LLC in Dubai Mainland?

The cost of opening an LLC in the Dubai Mainland is usually between 19,500 and AED 25,000. Remember that you can have the price of business type and any additional costs such as visa fees or immigration registration.

Steps to Form An LLC company in Dubai

Company Registration Fees

The company registration cost is a one-time that you pay when you first register your business. The exact amount depends on the type of company you established and which free zone you choose. The cost of registration LLC starts at 12,500 AED.

License Fees

When you start business in one of the free zones in Dubai, one of the first stages is to choose the right business license. The most common types are for business, services and industrial activities. Remember that this is an annual fee and usually costs between 10,000 AED and AED 50,000 per year.

Office Fees

To get your business license, you need to rent an office site in Dubai. Each free zone provides different types of offices that fit your business, such as services offices, smart desks or flexible desks. These usually cost AED 15,000 to 20,000 AED per year.

At DBS, we have a range of office options that are good for both new and small businesses. We are located in vibrant areas and offer flexible and serving desks, co-working spaces and fully equipped business centers to help start and increase business in Dubai. We also offer options in different industries and business hubs for different industries.

Employment Visa and Salary Costs

Don't forget to plan for employee salaries and costs for other employees. Salaries can vary greatly depending on each employee experience and skill.

Corporate Service Agent Fees

To run your business smoothly, you need the help of financial, legal and other business experts. The fees will be different based on the services that are important to you. Hiring a professional consulting company is often the best option for dealing with legally and compliance.

Opening a Bank Account

To manage your business transactions, you need to open a bank account. Opening one usually costs at least 3000 AED, but can increase the fees depending on the services you choose.

Operating Expenses

Running a business costs money, and sometimes you want to meet unexpected expenses. Always have some extra funds available to cover these expenses.

Documents Required for LLC Company Formation

To set up a limited liability company in Dubai, you will need the following documents:

Local Sponsor’s Passport: Submit a copy of the UAE national sponsor’s passport.

Investor’s Passport: Provide a clear copy of the investor’s passport.

No Objection Certificate: Submit an NOC if any shareholder is already employed in the UAE.

Application Form: Fill out the registration form from the Department of Economic Development.

Rental Agreement: Provide a valid rental agreement for your office premises.

Emirates ID: Include a copy of the Emirates ID for verification purposes.

Memorandum of Association: Submit a notarized document defining the company’s structure and agreements.

Benefits of Starting an LLC in Dubai, UAE

There are many benefits to starting LLC in Dubai. Here are some of the biggest benefits:

Fast Setup: With DBS, it is easy and faster to setup LLC. You can register your business at the Department of Economic Development (DED) in about 90 minutes. Typically, the whole process takes 4 to 5 days, although sometimes the authorities approval can give a little more time.

Tax Benefits: LLCs in UAE pays no corporate taxes, so all your proceeds live with your business.

Wide Range of Business Activities: Whether you are in agriculture, tourism or any other field, AEDBS services can help you get a license to conduct any of 2,000 approved activities.

100% Foreign Ownership: Due to recent rules changes, you can now make 100% of your business in many licensing categories, without the need for local sponsors.

Choose DBS Business Setup Group for UAE LLC Company Registration

At DBS Business Setup Group, we focus on making LLC company setup in Dubai and all emirates of the UAE simple and hassle-free. Our skilled team works closely with you to provide efficient and compliant LLC registration services. We take care of the entire process, prepare all company documents, obtain the necessary licenses and approvals, and customize our solutions to suit your business needs.

Whether you want to open your LLC in Dubai, Abu Dhabi, Sharjah, or any other emirate, our experienced professionals are ready to support you at every stage. We ensure that your LLC registration complies with the specific regulations of each emirate, while helping you enjoy their unique benefits, giving your business the best opportunity to grow.

FAQs: Frequently Asked Questions

Q1. How Much Does It Cost to Start an LLC in Dubai?

Starting an LLC in Dubai usually uses between AED 18,500* and AED 30,000*. Fees depend on which jurisdiction you choose, what kind of business you do, how many partners you have, visa requirements and some other details.

Q2. What Fees Do I Need to Pay for LLC Registration in Dubai?

Here are some of the common fees you will have to pay when setting up an LLC in Dubai:

  • Registration fee with the relevant authority

  • Mainland Trade License fee

  • Annual Chamber of Commerce fee

  • Administration fee

  • Annual Special Activity fee

  • Knowledge fee

Q3. What Is a Free Zone LLC?

A Free Zone LLC (Limited Liability Company) is a type of company that you can open in a UAE free zone. You don’t need a local partner or sponsor you get 100% ownership. It functions like a regular company but gives you more freedom, like a small business or partnership. It also protects your personal finances if your business has any problems.

Q4. Can an LLC Own Property in Dubai?

Yes, an LLC can buy property in Dubai. Even if the company is fully owned by foreigners, it can still own freehold property in some areas. These include Downtown Dubai, Dubai Marina and Palm Jumeirah. Owning property through an LLC helps protect your assets, makes it easier to pass on to family, maintains your privacy and can even help you save on taxes.

Recommended to Read: Difference Between an FZE Company and an FZCO in Dubai

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