If you’re an entrepreneur planning to start a business in the UAE, LLC company formation in Dubai is one of the most popular options out there. An LLC can be formed by a single shareholder and offers strong legal protection, operational freedom, and access to both local and international markets. Many entrepreneurs choose to work with business setup consultants in Dubai to simplify the process.
This guide breaks down the benefits of LLCs, Dubai LLC company formation cost, and how to start an LLC in Dubai.
Benefits of LLC Company Formation in Dubai
These are the advantages of starting an LLC in Dubai:
- Personal liability protection: An LLC is a separate legal entity, which means the shareholders’ personal assets are protected. Your liability is limited to the amount invested in the company.
- Full foreign ownership: Dubai now allows 100% foreign ownership for most business activities on the mainland and across all free zones. This eliminates the need for a local sponsor for most business activities.
- Business-friendly environment: There is no personal income tax in Dubai and only a 9% Corporate Tax. This makes the UAE a lucrative place to start an LLC.
- No minimum share capital requirement: For most LLC activities, there is no mandatory minimum share capital requirement, making it easier and more affordable to start a business.
Is it Better to Start an LLC in a Dubai Free Zone or on the Mainland?
It’s much easier to start an LLC in a free zone due to the ease and speed of license processing. They are also eligible to be exempt from corporate tax. However, mainland LLCs can easily trade with local and international markets and expand their operations without barriers.
| Feature | Free zone LLCs | Mainland LLCs |
| Ownership | Full foreigner ownership | Full foreign ownership (for most activities) |
| Regulatory body | Relevant free zone authority | Department of Economy and Tourism (DET) |
| Market access | Trade only with international markets and within free zone, need local partner for mainland | Trade with local and international markets |
| Tax obligations | Qualifying businesses pay 0% Corporate Tax | 9% Corporate Tax for turnover above AED 375,000 |
| Trade license processing | Quicker | Slower |
| Business expansion | Difficult | Easier |
| Visa quota | Limited | Unlimited |
What is the Dubai LLC Company Formation Cost?
It costs around AED 12,500 to AED 40,000 to start an LLC in Dubai. The actual cost depends on whether you set up in a free zone or a mainland, number of shareholders, and your business activity.
These are some of the main Dubai LLC company formation costs:
| Expense category | Mainland LLC | Free Zone LLC |
| Trade license registration | AED 15,000 – 25,000+ | AED 12,000 – 20,000+ |
| Trade name reservation | AED 620 | Included in most packages |
| Establishment card | AED 750 (approx.) | AED 1,800 – 2,200 |
| Visa | AED 5,000 – 6,500 | AED 3,500 – 5,000 |
| Office space | AED 15,000+ | AED 0 – 5,000 (free zones allow virtual offices) |
Steps for LLC Company Formation in Dubai
This is how entrepreneurs can start an LLC in Dubai:
1. Choose a Jurisdiction
You can start an LLC in a Dubai free zone or on the mainland. Both jurisdictions have their own advantages, but the choice depends on your business activity and intended customer base. The Department of Economy and Tourism oversees mainland businesses, while independent regulatory bodies oversee free zones.
2. Reserve a Trade Name
Your trade name has to be unique and follow Dubai’s naming regulations. You have to present three name options in English and literally translated in Arabic.
3. Find an Office
LLC company formation in Dubai doesn’t always require a physical address. Free zones allow flexi-desks and virtual offices, while mainland LLCs are legally required to have a physical address.
4. Apply for a Trade License
There are three main types of trade licenses available to LLCs: industrial, commercial, and professional. LLC owners must submit their identification information, bank statements, and company incorporation documents with the application.
5. Get a Visa
Once your LLC receives a trade license, you can apply for visas. Dubai free zones often offer packages including visas, so you can pick what suits your needs. Using Corporate PRO services can make the process easier.
6. Open a Bank Account
A corporate bank account is essential for every LLC in Dubai and UAE. Local banks usually have minimum balance requirements and monthly maintenance fees, so do your research and choose what works for you. Popular options include Mashreq, Emirates NBD, Wio, and RAKBANK.
How Long Does it Take to Set Up an LLC in Dubai?
The timeline for LLC company formation in Dubai takes around 5 to 15 working days.
- Free zone LLCs can be set up within 5 to 7 working days
- Mainland LLCs usually take 7 to 15 working days
The timeline may vary based on business activity approvals, document readiness, and visa requirements.
Whether you choose a free zone or a mainland LLC, the right setup depends on your business goals and target market. Working with the experts at Helen and Sons can help you complete the process smoothly. We provide license, visa, and bank account support for entrepreneurs across the UAE.
