How to Register a Limited Liability Company (LLC) in Dubai?

Dubai has transformed itself into a global business hub, attracting entrepreneurs, investors and corporations from around the world. With its strategic location, world-class infrastructure, low taxation policies and pro-business government initiatives, it continues to be one of the most preferred destinations for company formation.

For entrepreneurs looking to set up a business with limited liability protection, the most popular option in Dubai is a Limited Liability Company (LLC). An LLC is the most common and widely chosen business structure for both local and foreign investors, offering flexibility, credibility and limited liability protection.

This blog will explain how to register a Limited Liability Company (LLC) in Dubai, the steps involved, required documents, costs and compliance requirements.

Why Choose an LLC in Dubai?

An LLC in Dubai is often the go-to option because it combines credibility with operational flexibility. Some of the key reasons include:

• Limited Liability: Shareholders’ liability is restricted to the extent of their shares.
• Foreign Ownership: Recent reforms allow up to 100% foreign ownership in most activities. However, certain strategic or restricted sectors may still require a local Emirati partner or a Local Service Agent (LSA).
• Access to Markets: An LLC can trade directly within Dubai, across the UAE and internationally.
• No Minimum Capital Requirement: No mandatory minimum capital for most activities, though some free zones or regulated activities set specific requirements (e.g., DMCC – AED 50,000; DAFZ – AED 1,000)
• Tax Benefits: No personal income tax and a low corporate tax (9% only above AED 375,000 profit).

Eligibility to Register an LLC in Dubai

To establish an LLC, the following eligibility criteria apply: -

• Shareholders: Minimum 1 and maximum 50 shareholders (individuals or corporate entities).
• Age Requirement: Shareholders and directors must be at least 21 years old.
• Nationality: Open to both UAE nationals and foreign investors, subject to activity-specific restrictions.
• Business Activities: Activity must be on the approved list issued by Dubai Department of Economy & Tourism (DET - formerly DED) or relevant Free Zone Authority.
• Capital Contribution: While there is no minimum capital requirement, the shareholding structure must be clearly defined in the MoA.

Types of Business Activities Allowed for LLCs in Dubai

The Dubai Department of Economy and Tourism (DET) lists over 2,000+ business activities. Some major categories include:

1. Commercial Activities – Trading, import/export, logistics, retail.
2. Professional Activities – Consulting, IT services, legal, accounting, education, healthcare.
3. Industrial Activities – Manufacturing, packaging, production facilities.
4. Tourism Activities – Travel agencies, tour operators, hospitality services.
5. E-commerce and Tech – Online stores, software development, digital marketing.

Note: Certain activities (oil & gas, defence, telecom, financial services, healthcare, education, media, tourism) require special approvals from regulators like Dubai Municipality, DHA, KHDA and others.

Government Authorities Involved in LLC Registration

Setting up an LLC requires coordination with several government bodies, depending on the business activity and location: -

• Department of Economy and Tourism (DET) – Trade name reservation, activity approval, license issuance.
• Dubai Chamber of Commerce & Industry – For company registration and membership.
• Notary Public – For notarization of the Memorandum of Association.
• Ministry of Human Resources & Emiratisation (MOHRE) – For Establishment Card, essential for visa processing.
• General Directorate of Residency and Foreigners Affairs (GDRFA) – For establishment card and visas.
• Federal Tax Authority (FTA) – For VAT and corporate tax registration, if applicable.
• Specialized Regulators – Approvals for certain businesses (food, healthcare, construction, etc.)

Step-by-Step Process to Register an LLC in Dubai

1. Choose Your Business Activity

Select your business activity from the official list provided by Dubai’s Department of Economy and Tourism (DET, formerly DED).

2. Select the Company Structure

An LLC requires:

• Minimum 1 and maximum 50 shareholders (individuals or companies).
• Liability limited to the share capital contributed.

3. Reserve a Trade Name

Submit 2–3 options for approval. Names must comply with UAE naming rules (no offensive, political or religious references).

4. Choose Mainland or Free Zone Setup

a.) Mainland LLC

• Can trade across the UAE and abroad.
• Requires a physical office (Ejari).
• In some cases, a Local Service Agent (LSA) may be required, though they hold no equity.

b.) Free Zone LLC

• 100% foreign ownership guaranteed.
• Offers tax exemptions, flexi-desk/virtual offices and simplified setup.
• Local distributor required for trading directly in the mainland.

5. Draft the Memorandum of Association (MoA)

Specifies shareholding, profit-sharing and responsibilities. Must be notarized.

6. Obtain Initial Approval

Submit required documents to DET or relevant Free Zone Authority.

Validity: Typically, valid for the period of 6 months.

7. Secure Office Space and Tenancy Contract

Mandatory for mainland LLCs (Ejari registration). Free zones may allow the flexi-desk facilities.

8. Apply for the Trade License

Types of licenses: -

• Commercial – Trading activities
• Professional – Consultancy/services
• Industrial – Manufacturing

9.Certificate of Incorporation Issued

After DET or Free Zone Authority approval, your company receives a Certificate of Incorporation, proving legal existence.

10. Register with Government Authorities

• Dubai Chamber of Commerce
• MOHRE (Establishment Card)
• GDRFA (visas)
• FTA (if VAT/corporate tax applies)

11.Open a Corporate Bank Account

Required for transactions and compliance.

12.Apply for Visas

Investor and employee visas depend on office space and license type.

Documents Required for LLC Registration

• Passport copies of shareholders and directors
• Passport-size photographs
• Visa/entry stamp copies (if applicable)
• Trade name approval certificate
• Initial approval certificate
• Notarized MoA
• Tenancy contract (Ejari) for mainland setups

Timeline and Costs

Timeline:

• Mainland LLC: Approx. 4–8 weeks (depends on activity and approvals).
• Free Zone LLC: Approx. 2–6 weeks, sometimes faster depending on the authority.

 Costs:

• Mainland LLC: It varies by office rent, activity type and number of visas.
• Free Zone LLC:  Packages vary widely by zone and visa needs.

Professional and legal consultation fees are additional and vary by service provider.

Note: Costs vary depending on activity, office rent, visa requirements and approvals.

Post-Registration Compliance

• Renew trade license annually.
• File VAT returns (if registered).
• Renew Ejari (tenancy contract) yearly.
• Renew visas and establishment card as required.
• Maintain proper accounting records per UAE Commercial Companies Law.
• Comply with Economic Substance Regulations (ESR) for certain activities (finance, IP, holding companies).

Benefits of Setting Up an LLC in Dubai

Full access to UAE and international markets.

• Limited liability protection.
• Credibility with banks, suppliers and customers.
• 100% foreign ownership possible in most activities.
• Investor-friendly tax and legal regime.

Common Mistakes to Avoid When Registering an LLC in Dubai

1. Choosing the wrong business activity – Can delay approvals and restrict operations.
2. Not checking ownership restrictions – Some activities still require a local partner /LSA.
3. Ignoring office space requirements – Mainland companies must have Ejari; skipping this leads to license rejection.
4. Improperly drafted MoA – Can cause disputes later between shareholders.
5. Underestimating costs – Hidden costs (visa, PRO services, renewals) should be budgeted.

Conclusion

Setting up a Limited Liability Company (LLC) in Dubai is a rewarding choice for entrepreneurs looking to expand and explore into the Middle East and global markets. With its pro-business policies, strategic location and investor-friendly regulations, Dubai offers a strong foundation for growth. For professional assistance in registering company in Dubai, contact Remind Legal, our expert will make the process smooth for you.

By carefully selecting your activity, securing approvals, drafting the MoA, leasing office space and obtaining your trade license, you can establish your LLC smoothly. Whether you choose a mainland setup for flexibility or a free zone for simplified ownership, Dubai remains one of the most business-friendly jurisdictions in the world.