LLC Company Registration in Dubai [Conditions, Cost, Rules, and Key Points 2025]

If you intend to launch a business in Dubai, registering an LLC company is the safest option; a well-known business structure that is considered an ideal choice for global entrepreneurs due to high flexibility, limited liability, and legal protections for shareholders. LLC company registration in Dubai gives you full legal presence and commercial freedom across the UAE and provides conditions for official activity, contract signing, and receiving banking services. With the implementation of the 100% foreign ownership law, no personal income tax application, and the existence of a strong banking ecosystem, this path can be the best opportunity for your business.

What is an LLC Company in Dubai and Which Businesses is it Suitable For?

An LLC company in Dubai is a type of legal structure that allows domestic and foreign investors to register and operate their business with an independent legal personality. This type of company is an excellent choice for the following businesses:

• Commercial and trading companies
• Contracting companies
• Import and export companies
• Consultants and professional service providers
• General businesses intending to operate inside the UAE

Mainland LLC or Free Zone LLC?

Choosing between Mainland or Free Zone when registering an LLC company in Dubai is one of the important decisions. Although both structures offer limited liability, they differ in terms of legal jurisdiction, scope of activities, ownership rights, and costs. This issue is similar to buying property where location and type affect the final investment.

Free Zone LLC

These companies operate in a specific Free Zone, such as IFZA, DMCC, RAKEZ, and cannot trade directly in Dubai Mainland without a local agent or distributor.

Mainland LLC

This type of company allows you to launch your business across the UAE and contract directly with customers and government organizations. Just as Downtown Dubai is known as the city’s commercial heart and provides easy access to important centers, a Mainland LLC also provides the possibility of extensive and direct activity in the UAE market.

LLC Registration Conditions in Dubai for Foreigners

LLC company registration in Dubai for foreign nationals is possible under the following conditions:

• Minimum Age: Shareholders and managers must be at least 18 years old.
• Allowed Activity Type: The selected company activity must be in the list of activities allowed for 100% foreign ownership; otherwise, company registration depends on complying with requirements regarding an Emirati partner or agent.
• Minimum Capital: The capital amount must be officially stated in the Memorandum of Association (MOA).
• Activity Validity: The selected activity for LLC registration must be among the authorized activities announced by UAE official authorities. In some sensitive areas like defense, banking, and security, registration is only possible upon receiving special permits or collaborating with a Local Service Agent (LSA).
• Physical Office Requirement: All LLC companies in Dubai (Mainland) must have physical commercial space. Additionally, providing a lease contract registered in the Ejari system is a necessary condition for the final issuance of the trade license. This requirement is somewhat similar to paying attention to property values; just as budget and value are considered for buying a property, a physical office and official lease contract are mandatory for company registration.

Documents Required for Limited Liability Company Registration in Dubai

By preparing these documents, you can simplify your LLC registration process:

Steps to Register an LLC Company in Dubai City

Registering an LLC company in Dubai is not a complex task provided you know the steps. We explain in detail below. This process applies to all businesses.

Selecting Business Activity Type

In the first step, you must specify your company’s exact activity based on the list of authorized activities provided by the Dubai Department of Economy and Tourism (DET).

Selecting Company Legal Structure

This stage determines the company’s legal structure, share ratio, each partner’s share in profit, and managerial roles of each stakeholder. The LLC legal structure can be one of the following:

• Single Owner LLC
• LLC with multiple partners (up to a maximum of 50 shareholders)
• LLC with a corporate shareholder (if a company participates as a shareholder)

Reserving Trade Name

At this stage, you must choose 2-3 suggested names for your company and send them for approval to the Dubai Department of Economic Development (DED) in Mainland areas or the relevant Free Zone authority. For selecting a company name, you must observe these rules:

• It should express your business activity.
• It should comply with Dubai naming regulations.
• It should not contain religious or political references, international brand names, and names already registered.

Receiving Initial Approval

In this stage of LLC registration in Dubai, you receive the government’s initial permission to continue the process. This permission is issued within 2 to 3 working days. To receive this approval, you must submit your initial request along with the following documents:

• Copy of shareholders’ passports
• Details of business activity
• Trade name reservation certificate

Drafting Memorandum of Association (MOA) and Local Service Agent (LSA) Agreement

At this stage, you must draft documents including the company’s Memorandum of Association (MOA) and, if needed, the Local Service Agent (LSA) agreement. These documents are important for official LLC registration and determining the responsibilities and rights of each stakeholder. The MOA includes:

• Names of shareholders
• Capital distribution
• Subject of company’s business activity
• Profit and loss ratio between shareholders

Renting Office and Registering Ejari Contract

Registering Ejari is one of your vital prerequisites for the legal and official setup of the company. This stage guarantees the company’s official and legal status and provides the possibility of activity and hiring staff. The importance of this issue can be likened to the impact of property features on investment decisions; meaning the more precise and transparent the company’s legal preliminaries, the more confidently your business decisions are made.

Without Ejari registration, you cannot:

• Receive a Trade License.
• Get visa quotas for yourself or employees.
• Receive necessary approvals from government entities.

Submitting Final Documents for License Issuance

At this stage, you must submit all your final documents for trade license issuance to the Dubai Department of Economy and Tourism (DET) or the relevant Free Zone authority. In this case, you can receive a trade license and operate legally.

Paying License Fee and Receiving LLC Trade License

After the approval of final documents, you must pay the trade license fee. Finally, you receive your company’s official documents:

• Company Registration Certificate
• Trade License
• Chamber of Commerce Registration

Opening Corporate Bank Account

After receiving the trade license and registering the LLC company in Dubai, you can open a corporate bank account. Banks review your company documents to ensure the validity and accuracy of company information. To open an account, you need these documents:

• Copy of Trade License
• Copy of shareholders’ passports and visas
• MOA and official company stamp
• Office lease contract (Ejari or Flexi Desk letter)
• Emirates ID (if applicable)
• Company profile or Business Plan

Applying for Residence Visa

After company registration, you can apply for a Residency Visa for yourself, employees, and dependent family members. The number of visas you can receive depends on the office size and your business activity type.

New LLC Registration Rules in Dubai

With the reforms made in LLC registration laws, you as a foreign investor can launch your company in Dubai with less risk and more flexibility.

100% Foreign Ownership and Removal of Emirati Partner

Before June 2021, forming an LLC in Dubai Mainland required 51% shareholding by a local Emirati sponsor. But with recent reforms, most business activities now allow 100% foreign ownership.

Minimum Capital for Dubai LLC Company

Based on DED rules, a legal minimum capital is not mandatory for registering an LLC in Dubai Mainland, and the capital amount simply needs to be stated in the MOA. However, capital should be logical and proportionate to the company’s activity type. Additionally, some specific activities might require a specific minimum capital.

Economic Substance Regulations (ESR)

Based on the UAE government’s ESR law, some businesses must prove their real economic presence in this country: Banking, Insurance, Investment Management, Holding Companies, IP, Distribution and Service Centers are among these businesses. These companies must submit an initial notification within 6 months and an annual report within 12 months after the end of the financial year to the relevant authority; otherwise, they are subject to fines, suspension, or non-renewal of the license.

VAT Registration and Filing

If the company’s annual turnover exceeds a certain limit, Value Added Tax (VAT) registration is mandatory. The company is obliged to submit VAT returns every three months.

Dubai LLC Company Registration Cost

The cost of registering an LLC company in Dubai varies depending on the field and type of business activity. Launching an LLC in Dubai costs between 25,000-27,000 AED. Just as large investments require careful budget review and financial planning, predicting and managing company registration costs is also essential for business success.

Hidden and Ongoing Costs After Company Registration

When launching an LLC in Dubai, besides the main costs, you also face hidden costs, including:

• Cost of attestation and translation of foreign documents
• Professional or consulting service fees (PRO fees)
• Annual renewal of licenses, office rent, and if needed, local partner fee
• Administrative costs for receiving external approvals like businesses in medical and health (Health Authority), transport, vehicle (RTA), tourism (DTCM).

Investor Visa Cost for LLC Company in Dubai

The investor visa cost for registering and operating in an LLC in Dubai is usually between 4,500-5,250 AED.

Employment Visa Cost for LLC Employees in Dubai

The cost of issuing an employment visa for employees of an LLC company in Dubai is between 5,000-7,000 AED. This amount changes based on the business activity type and employee job category.

LLC Company License Renewal Cost in Dubai

For the annual renewal of an LLC company license in Dubai, usually between 10,000-15,000 AED is required.

Bank Account Opening Steps in Dubai LLC

After registering the LLC in Dubai, you must proceed to open a corporate bank account according to the following steps:

• Select Bank: First, choose your desired bank; Emirates NBD, Mashreq, RAKBANK, or international banks like HSBC or Citibank.
• Submit Request and KYC Form: Complete the request form and KYC. These forms include information such as company activity type, approximate transaction volume, and customer details.
• Presence for In-Person Verification: If needed, you or the company manager must attend an in-person meeting at the bank for final review.
• Wait for Final Approval: If documents are complete, the account opening process takes 3-10 working days.

Duration of LLC Company Registration in Dubai

The final time for company registration can vary according to the registration area type (Mainland or Free Zone), business activity type, and completion or deficiency of documents. Typically, the LLC registration process takes 5-10 working days.

What Factors Delay the Company Registration Process?

Under the following conditions, the LLC registration process in Dubai becomes longer:

• Incomplete or incorrect documents submitted
• Delay in office rental or Ejari contract registration
• Payment problems or delay in settling fees
• Prolongation of MOA formalization process
• Selecting activities requiring approvals outside DED (Health Authority, DTCM, or RTA).

How to Perform the Company Registration Process Faster?

To register an LLC in Dubai in the shortest possible time, perform these actions:

• Collaborate with a professional company registration consultant who reviews and corrects documents before submission.
• Precise preparation of documents in advance.
• Selecting simple activities without the need for side approvals from third-party entities.
• Selecting Free Zone (in some of its areas, same-day license issuance is possible).

LLC License Renewal in Dubai

To continue legal activity, you must renew your trade license annually and adhere to UAE legal requirements. Failure to renew the license on time brings these consequences:

• Monthly fine
• Cancellation of all employee visas under the company
• Blacklisting the company
• Possibility of company accounts being blocked
• Blocking of immigration file

Benefits of Launching an LLC Company in Dubai

By registering an LLC in Dubai, you enjoy these benefits:

• Full Access to UAE Market: By registering an LLC in Dubai, you can collaborate with government contracts, retail markets, and private customers across the UAE.
• Limited Liability of Shareholders: With company registration in Dubai, your liability is limited to your share of capital in the company, so your personal assets are not at risk in case of company loss or debt.
• Flexibility in Business Activity Type: You can perform several related activities with one license.
• Easy Access to Banking Services: You can open a business bank account in all Dubai banks, request loans, and manage company finances.
• Long-term Business Stability: With transparent license renewal processes, clear legal structure, and personal income tax exemption, sustainable presence is possible for you.
• No Need for Minimum Capital: You do not need to initially deposit the nominal capital amount stated in the documents.

Challenges of Registering a Limited Liability Company in Dubai

Below we point out the most important challenges in the Dubai LLC registration process:

What License is Required for Your Business in Dubai?

Dubai has a specific trade license for every type of business activity, and some activities require ownership or partnership with an Emirati citizen. Depending on your field of activity, you must receive one of the following license types:

What Capital Amount is Required to Register an LLC in Dubai?

Minimum capital is not mandatory for registering an LLC in Dubai. However, for some activities, an initial capital between 35,000-50,000 AED is set, of which at least 51% must belong to an Emirati citizen.

Where Can I Register My LLC Company in Dubai?

If you register your company in Dubai Mainland, you must have a physical commercial space, which has additional costs. In contrast, with LLC registration in Free Zone, having a physical office is not mandatory or is done more simply.

What Government Taxes (Corporate Tax) Apply to LLC in Dubai?

Businesses whose annual taxable income exceeds 375,000 AED are subject to 9% Corporate Tax. Of course, Value Added Tax (VAT) also applies to goods and services.

LLC, The Best Business Structure in Dubai

If you want to launch your business without regional restrictions in Dubai, LLC is the option you need. Registering an LLC in Dubai gives you full access to the UAE market, high legal security, and long-term freedom of action. With the possibility of 100% foreign ownership in most activities, you can operate without a local partner; contract with private clients and government entities, and expand your work team through residency visas. Of course, provided you have a clear view of setup and renewal costs, required documents, registration steps, and suitable license type. General familiarity with these items helps you traverse the LLC registration process in Dubai without potential risks. If you want to have a secure investment in real estate alongside business, you can currently use installment property purchase opportunities.

FAQ

Do foreign nationals have the possibility to register an LLC company in Dubai?

Yes, foreign nationals can register an LLC company in Dubai.

Does Dubai LLC include tax?

Yes, an LLC company in Dubai is subject to Corporate Tax; company profit up to 375,000 AED per year is exempt, and the surplus is taxed at a rate of 9%.

Is LLC registration in Dubai possible without an Emirati partner?

Yes, most LLC activities in Dubai now allow 100% foreign ownership; unless in some strategic and regulated sectors where a local partner is necessary.

What activities include the removal of the Emirati partner?

Fields such as trade and commerce, professional services and consulting, technology and IT, industry and manufacturing, education and training centers, health and treatment, tourism and hospitality, transport, and other industrial and support services.

What is the role of Local Service Agent after partner removal?

LSA is officially a local agent who provides the possibility of performing legal and official company affairs in Dubai for foreign investors without having a share in ownership or company profit; LSA does not have the role of owner or legal partner, but in some regulated activities like legal consulting, engineering, their presence is mandatory.