LLC Company Formation in Dubai , UAE

Limited Liability Company (LLC) is the most common type of company you will find in the UAE. The legally formed independent organization, LLC, can have a maximum of 50 shareholders. Being an entity in the UAE Mainland, it can undertake business operations across the country. A local agent is mandatory when it comes to LLC company formation in Dubai, UAE. The expat investor can have 49% stakes on the company. The remaining 51% of shares will be held with an Emirati, the local sponsor.

UAE has investor-friendly regulations and policies. The country offers optimum support for investment in businesses and the commencement of new entities. Setting up an LLC company in the Mainland gives umpteen advantages to you. The bounties offered by LLC have been attracting entrepreneurs to opt for it.

Understanding LLC Company Setup, Dubai

A Limited Liability Company (LLC) in the UAE Mainland can be established at a low start-up cost. Since the expenditure is minimal during the initial stage, the investor can utilize maximum principle for the commencement of full-fledged operations. You can start an LLC with 02 to 50 shareholders. However, the shareholders are not liable for the company's liabilities.

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Limited Liability Company Setup in UAE


Low Initial Costs

The low initial costs during setting up, business license issuance, and other fees is one of the prime benefits of company formation in Dubai or any other region in the UAE.


Visa Options

A Mainland business entity can seek several visas depending on the size of the company and office space acquired by it. This helps the company to get low-cost labor from other countries. The limitations regarding the number of visas could be discussed with DED in case required and permission could be obtained.


Easy Setting Up

The authorities have been keen on ensuring that the investors find the atmosphere is conducive for setting up a company in Dubai. The frequent amendments in policies and regulations have been towards this objective. Hence, the limited liability company formation in Dubai is extremely easy. The Dubai Economic Department (DED) looks after the formalities and provides initial approval for the LLCs. You may obtain initial approval as fast as in 1.5 to 2 hours if you are aware of the process or assisted by an experienced agency.


Business Anywhere

The entire country is open for the Mainland Company. An LLC can trade anywhere in the country abiding by the rules. The approval to carry out business operations across the country has been the most important factor that popularised LLCs. On the other hand, a Free zone company is limited to its jurisdiction. Therefore, the options of the market and areas are limited to a Free zone company.


Set Up Office At Your Choice

As the LLC is a Mainland company, it can set up its office anywhere in the country, without any concern of jurisdiction. You can choose the location that is best for your business and set up an office without any complications.


Unlimited Business Options

LLCs don’t have any limitations regarding the business they can undertake. The plethora of business areas and markets make LLC company formation in Dubai the most attractive choice. An expat expert in a particular field can select to start the business entity focusing on the subject field.


Frequently Asked Questions On LLC Company Formation

  • What is Ejari?
    • Ejari is the lease or rent agreement registered online. Real Estate Regulatory Authority (RERA) has commenced it for ensuring that the renting or leasing process has been accomplished according to the rules. This is essential for preventing disputes between the tenant and the owner.
  • Is commercial space compulsory?
    • Commercial space, that meets dimensions specified by the authorities, is compulsory if you are considering starting commercial activities.
  • How long is the process of setting up a business entity in Dubai?
    • The time taken for obtaining initial and final approvals and starting business operations will depend on the type of business you want to start and other aspects. However, the initial approval may be obtained as fast as in about two hours if you follow the procedure properly.
  • I don’t have a resident visa. Can I start LLC in Dubai or anywhere else in UAE?
    • You need to obtain a resident visa for an LLC company formation in Dubai/ UAE.
  • Why is Dubai the best place for setting up a business?
    • Dubai is the dreamland for those thinking of commencing business. The policies are conducive to the growth of the business. It can turntable in favor of you. Dubai has turned the fortunes of numerous expats and residents.

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Limited Liability Company Setup in UAE

You can establish an LLC without any hassles. Knowing the application submission and approval processes will help you get the job done at the earliest. However, the professional help from an established business setup service in Dubai will be the best thing whilst proceeding with setting up a business in the UAE. Right from the initial to final phase, Kiltons support you with strategic ideas to help you with the LLC company formation in Dubai, UAE. 

Kiltons have been helping expats and UAE nationals in setting up companies in the Mainland, Free zone, and Offshore jurisdictions. Established in 1999, the expertise we have acquired over two decades of existence has been pivotal in supporting businesses across UAE. 

The steps for Limited Liability Company Setup in UAE elaborated in the succeeding paragraphs.

Select Your Field

Have you finalized which business you want to establish in Dubai? Obtain the list of business activities permitted in UAE Mainland from DED. Go through it to find whether the business you have in mind features in the list or not. If you haven’t decided on the field of business, choose the one from the list that you believe suits you. Else, discuss with us to get a detailed insight into each of the business activities and their pros and cons.

Name of the Entity

There is a laid down rule in the UAE regarding the naming of your company. Usage of offensive words, political or religious references are not allowed in the company name. Further, if you are opting to use your name as the name of the entity, you must use your first name and last name in an expanded condition. Select the name and forward it to the authority for approval. If it is rejected, the competent authority will suggest some changes. You may accept the changes and proceed. Alternately, choose another name that meets the guidelines and submit it.

Process Initial Approval

The Dubai Economic Department will issue initial approval for establishing a business. However, the process will involve approvals from various departments and ministries depending on the type of business. The application along with documents is to be submitted to relevant governmental agencies for clearance and approval. Once you receive the initial approval you can proceed ahead with the remaining process for commencing the business operations.

MOA, AOA, and Sponsorship

You must formulate an Article of Association (AOA) and Memorandum of Association (MOA), which specifies the company's legal structure, rules, and regulations. The AOA and MOA must be according to the existing policy guidelines and laws of the land in the UAE.

It is mandatory to have a corporate agency agreement with a local Emirati, who will be sponsoring your company. You are not authorized to establish a Mainland company without local sponsorship. You (and other shareholders) will hold 49% of the shares and rest 51% shares will be with the sponsor. All the legal formalities and economic transactions will be on the name of the sponsor. Due to the said reasons, you must ensure that the sponsor is a 100% reliable person.

Office Space and Commercial Space

Once you are through with the above-mentioned steps, you must find an office space and commercial space, if required. The lease or rent agreement must be registered in Ejari, the online registration system commenced by the Real Estate Regulatory Authority (RERA).

Obtain Trade License

Once you complete all the processes mentioned here, you can approach the authority for a Trade License. You must put up an application in the specified format, along with all the documents and certificates. The Trade License authorized MOA, and other relevant certificates will be issued post perusal of the documents submitted.

Required Documents For LLC Formation In Dubai, UAE

You need to submit various documents during the process of initial and final approval of LLC company formation in Dubai and UAE. Additional documents, other than those mentioned here, may be required depending on the type of business.

Initial Approval

  • Application in the requisite format
  • Company name according to the stipulations
  • Copy of the passport of the expat/ company owner
  • NOC from the local sponsor and Emirate ID, in case the applicant is a UAE resident
  • Copy of the passport of the Emirati sponsor and family book
  • Copy of passports of members of the director board

Final Approval

  • Copy of initial approval
  • Copy of Ejari and location address
  • Notarised MOA
  • All the documents submitted for initial approval

Kiltons Business Setup Services LLC have been the leading business setup services in Dubai since its inception in 1999. We have a team of professionals to guide, support, and aid you in setting up a business and commence business operations in UAE successfully. We are a trustworthy organization committed to customer satisfaction, our professionals work in tandem with the governmental authorities to obtain the best outcome for our clients.

If you are thinking of an LLC company formation in Dubai, UAE contact us now. Our experts will help you set up your business anywhere in UAE. 

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