25 February, 2024

LLC Company Formation in Dubai : Step By Step Guide

llc company formation in dubai

Starting a limited liability company (LLC) in Dubai offers immense opportunities in a thriving business environment. With its strategic location and robust economy, Dubai stands out as a prime destination for entrepreneurs. The UAE’s free trade zones, offering full ownership, zero income tax, and top-notch infrastructure, further enhance its appeal. Setting up an LLC in Dubai is simplified with assistance from reputable specialists like RadiantBiz. This article explores the process, equipping you with the knowledge to start your LLC formation company in Dubai.

What is LLC company formation in Dubai?

In the UAE, the most prevalent business structure is the Limited Liability Company (LLC). With a minimum of two and a maximum of fifty shareholders, each shareholder is only responsible for their portion of the company’s capital. An LLC has the freedom to operate across the UAE and the Gulf Cooperation Council (GCC) region. Notably, LLCs are not subject to income tax and do not have a fixed capital requirement, offering flexibility and tax benefits for businesses.

Process for LLC Company Registration in Dubai, UAE

Setting up an LCC (Limited Liability Company) in Dubai involves a systematic process:

  1. Identify Business Activity: Determine the nature of your business activity to align with legal requirements and market demand.
  2. Register Trade Name: Choose a unique trade name that complies with regulations and reflects your business identity.
  3. Apply for Initial Approvals: Obtain necessary approvals from relevant authorities based on your business activity and location.
  4. Draft Memorandum of Association (MoA): Prepare the MoA and other legal agreements outlining company structure, ownership, and operational details.
  5. Select Location and Workspace: Decide on a suitable location for your business operations and secure workspace as per your requirements.
  6. Apply for Government Approvals: Complete all required government approvals specific to your business activity, including permits and licenses.
  7. Submit Documents and Pay Fees: Compile and submit all necessary documents, along with payment of applicable fees, to complete the registration process.

LLC is one of the several types of companies you can establish in Dubai, including Sole Proprietorship, Civil Company, Branch Office, and Representative Office, each with its own set of regulations and requirements.

Steps to Open LLC Company in Dubai, UAE

Forming an LLC in Dubai involves specific steps to ensure compliance with laws and regulations. Here’s a guide to LLC company formation in Dubai, UAE:

Step 1: Choose a Name for LLC Company

Select a unique name for your company that reflects its operations.

Step 2: Select a Location

Consider accessibility, suitability, and transit availability when choosing your business location.

Step 3: Select a Business Activity

Identify the most suitable business activity with the help of Creative Zone.

Step 4: Submit Documents to DED

Submit all required documents to the Department of Economic Development (DED) for approval.

Step 5: Approval Process for Activities

Seek approval from relevant authorities for specific business activities if needed.

Step 6: Obtain Your LLC License

Once approved, obtain necessary licenses and legal documents including Memorandum of Association, Certificate of Incorporation, Trade license, Share certificates, Visas, Tenancy agreement, and Labor cards.

Advantages of Dubai LLC Company Formation

No Constraints On Capital Requirements

For Dubai LLC formation, there’s no specific minimum capital requirement. However, a certain amount must be deposited in a bank for about two weeks. Yet, some contracts may not impose capital constraints.

Invest and Get Partnership

Foreign investors in Dubai LLCs aren’t just depositors but also partners, equally involved in major decisions. This structure offers credibility and market exposure, particularly for trading and manufacturing.

Visa for Investors

Investors in Dubai LLCs enjoy investor visa benefits, granting privileges in the Emirates.

Liberty to Rent an Office

Dubai LLC investors can rent offices or establish branches locally or abroad, offering flexibility.

No Interference and Lesser Obligations

Under specific contracts, UAE partners may have minimal interference, allowing investors to manage daily operations freely.

Extensively Secure and Reliable

Dubai’s government and the Department of Economic Development ensure foreign investors’ security and reliability. Assets and capital remain under the company’s name, reinforcing reliability.

Supportive Environment

The Department of Economic Development facilitates business setup, aiming for a hassle-free process. Partnering with a business setup company can enhance efficiency further.

LLC company formation cost in Dubai, UAE

Registering your limited liability company in Dubai typically costs between AED 20,000 to 30,000. However, expenses can fluctuate based on the industry type and services required. The investor visa fee falls between AED 4,000 to AED 5,500. Hiring employees incurs additional costs, ranging from AED 5,000 to AED 7,000 depending on the employee category. It’s essential to consider these expenses when planning your business setup in Dubai.

Documents required to start an LLC in Dubai, UAE

To start an LLC in Dubai, UAE, whether with assistance or independently, the Dubai Department of Economic Development (DED) requires specific documents and details. These include:

• Investor’s passport copy

• Local sponsor’s passport copy

• No Objection Certificate (NOC) if shareholder works in UAE

• Emirates ID copy

• DED registration application form

• Attested tenancy contract for office

• Attested Memorandum of Association from public notary

For guidance on detailed requirements, contact RadiantBiz business setup managers. They ensure swift and compliant LLC setup.

Are you ready to setup a business in Dubai with RadiantBiz? If you want to learn about starting business in UAE, you can contact us by calling +971 50 797 4832 or sending a WhatsApp message to +971 50 777 5554. You can also email us at [email protected] for assistance.

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