Key aspects of an LLC in Dubai:
1.Limited Liability:
The personal assets of shareholders are safeguarded and not held liable for the company’s debts or financial obligations.
2.Shareholders:
An LLC in Dubai typically requires a minimum of two and a maximum of fifty shareholders.
3.Regulation:
The Dubai Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), is responsible for issuing LLC licenses and regulating economic activities.
4.Flexibility:
LLCs offer more flexibility in management and operations compared to some other corporate structures.
5.Trade Scope:
LLCs can trade anywhere within the UAE and the Gulf Cooperation Council (GCC).
What does LLC stand for in the UAE?
A Limited Liability Company (LLC) is the most widely used business structure in the UAE. It can have between two and fifty shareholders, with each partner responsible only for their share of the company’s capital. Additionally, there is no income tax applicable or fixed capital requirement for an LLC. Moreover, LLCs in the UAE are not subject to personal income tax, and there is no mandatory minimum capital requirement to establish one.
Benefits of Establishing an LLC in Dubai, UAE
Forming a Limited Liability Company (LLC) in Dubai offers several compelling benefits for investors and entrepreneurs:
1.Fast Business Registration
Setting up an LLC is a streamlined process. You can register your business with the Department of Economic Development (DED) in as little as 90 minutes, depending on document readiness. On average, the complete setup takes 4 to 5 working days, though it may extend if additional government approvals or certifications are required.
2.Tax Efficiency
LLCs benefit from Dubai’s favorable tax environment. There is no personal income tax, and many companies enjoy zero corporate tax, depending on activity and revenue thresholds.
3.Broad Scope of Licensed Activities
With a DED mainland license, your LLC can engage in over 2,000 approved business activities, spanning industries like agriculture, retail, hospitality, consulting, tourism, and more.
4.100% Foreign Ownership Eligibility
Thanks to recent legal reforms, many business activities no longer require a UAE national sponsor. This allows 100% foreign ownership for mainland LLCs, making Dubai even more attractive for international investors.
LLC Company Formation Cost in Dubai, UAE
The cost of setting up a Limited Liability Company (LLC) in Dubai typically ranges between AED 20,000 and AED 30,000. However, the final price depends on multiple factors, such as your business activity, license category, and required government approvals.
Since every business is unique, it’s best to get a customized quote based on your specific requirements. At Quickplus, we provide clear and transparent pricing tailored to your industry type and chosen activities, ensuring you only pay for what you actually need.
Contact Quickplus today to receive an up-to-date LLC setup cost. Fill up the form and get expert guidance on selecting the most suitable structure for your business in Dubai.
Steps to Open an LLC in Dubai, UAE
Forming a Limited Liability Company (LLC) in Dubai requires following a structured legal process that complies with the UAE’s commercial laws. Here’s a step-by-step breakdown:
1: Choose a Company Name and Define Activities
Select a trade name that complies with UAE naming guidelines. At the same time, clearly define the business activities your LLC will perform. This will determine the type of license you’ll need.
2: Decide on a Business Location
Choose a strategic business location on the mainland that aligns with your operational needs. Consider factors like proximity to clients, logistics, and market accessibility.
3: Select the Appropriate Business Activity
Your chosen activity must be approved and listed under the Department of Economic Development (DED)‘s allowed activities. Working with Quickplus can help you choose the right one for your business goals.
4: Prepare and Submit Documentation to DED
Once the trade name, business activity, and location are finalized, submit all required documents to the DED. These typically include passport copies of shareholders, initial approval forms, and tenancy agreements.
5: Obtain External Approvals (If Required)
Some business activities (like healthcare, education, or financial services) require approvals from additional government entities such as the Ministry of Health or Central Bank. Quickplus can coordinate these approvals on your behalf.
6: Receive Your Trade License and Legal Documents
After all approvals are in place, the DED will issue your official documents, including:
- Trade License
- Memorandum of Association (MOA)
- Certificate of Incorporation
- Share Certificates
- Establishment Card
- Visas and Labor Card
- Ejari (Tenancy Contra
Required Documents for LLC Formation:
- Passport copy of the shareholder(s)
- Passport copy of the UAE national partner (if applicable)
- Emirates ID copy (for UAE residents)
- No Objection Certificate (NOC) from the current employer
- DED registration application form
- Tenancy contract (Ejari) for your business location, attested by the relevant authority
- Memorandum of Association (MOA), notarized by a UAE public notary
