2025
Limited Liability Company (LLC) Formation in Dubai: A Complete Guide by Proxima Eight
Everything You Need to Know to Launch a Successful Business in the UAE
Why Choose an LLC in Dubai?
A Limited Liability Company (LLC) is the most common and flexible business structure for investors looking to set up in Dubai’s mainland. It allows you to:
Key Features of an LLC in Dubai
1. Choose a Business Activity
You must select an activity approved by the Department of Economy and Tourism (DET/DED). Some activities may require additional approvals from external authorities (e.g., real estate, education, healthcare).
2. Reserve a Trade Name
Select a name that complies with UAE naming laws — it must not be offensive, religiously sensitive, or similar to existing companies.
3. Select a Local Address
All LLCs must have a physical office space (Ejari contract). Virtual offices are not accepted for mainland businesses.
4. Draft the MOA (Memorandum of Association)
This is a legal document that outlines shareholding, management structure, and business scope. It must be notarized and translated into Arabic.
5. Submit Licensing Application to DED
This includes shareholder documents, trade name certificate, initial approval, and tenancy contract.
6. Obtain External Approvals (if required)
Some sectors require permissions from specific regulators (e.g., Dubai Municipality, KHDA, DHA).
7. Pay Government Fees and Receive License
Once approved, you’ll receive your commercial license, and your LLC is officially registered.
Documents Required
For individual shareholders:
LLC Formation Costs in Dubai
A Limited Liability Company (LLC) is the most common and flexible business structure for investors looking to set up in Dubai’s mainland. It allows you to:
- Operate anywhere in the UAE — not just in free zones
- Access government tenders and large contracts
- Maintain a wide scope of commercial activities
- Sponsor employee and family visas
- Open local and international bank accounts
- Retain 100% ownership (since 2021 reforms for most activities)
Key Features of an LLC in Dubai
- Minimum of 1 and maximum of 50 shareholders
- Shareholders’ liability is limited to their capital investment
- Requires a physical office space
- Can be 100% foreign-owned (for most activities)
- Subject to UAE Corporate Tax (9%) and VAT (5%) where applicable
- Must comply with local regulations from DED, MOHRE, and UAE Ministry of Economy
1. Choose a Business Activity
You must select an activity approved by the Department of Economy and Tourism (DET/DED). Some activities may require additional approvals from external authorities (e.g., real estate, education, healthcare).
2. Reserve a Trade Name
Select a name that complies with UAE naming laws — it must not be offensive, religiously sensitive, or similar to existing companies.
3. Select a Local Address
All LLCs must have a physical office space (Ejari contract). Virtual offices are not accepted for mainland businesses.
4. Draft the MOA (Memorandum of Association)
This is a legal document that outlines shareholding, management structure, and business scope. It must be notarized and translated into Arabic.
5. Submit Licensing Application to DED
This includes shareholder documents, trade name certificate, initial approval, and tenancy contract.
6. Obtain External Approvals (if required)
Some sectors require permissions from specific regulators (e.g., Dubai Municipality, KHDA, DHA).
7. Pay Government Fees and Receive License
Once approved, you’ll receive your commercial license, and your LLC is officially registered.
Documents Required
For individual shareholders:
- Passport copy
- Visa copy or entry stamp
- Emirates ID (if resident)
- Passport-sized photo
- Board resolution
- Certificate of incorporation
- MOA
- Shareholder passport copies
LLC Formation Costs in Dubai
Note: Pricing may vary by business activity, visa quota, and office type.
Ownership Structure: 100% Foreign Ownership Explained
As of 2021, most business activities in Dubai no longer require a UAE national sponsor. Foreign entrepreneurs can now hold 100% ownership of their mainland LLCs — particularly in sectors like:
What Happens After You Register?
Once your LLC is formed, you'll need to complete the following:
Benefits of Working with a Business Setup Advisory
Setting up an LLC can involve over a dozen steps, multiple departments, and language/legal barriers. At Proxima Eight, we simplify the process by:
Ready to Launch Your LLC in Dubai?
An LLC gives you the operational freedom and legal protection you need to thrive in one of the world’s most exciting business environments.
Book a free consultation with Proxima Eight to start your LLC formation in Dubai — with clarity, speed, and confidence.
Ownership Structure: 100% Foreign Ownership Explained
As of 2021, most business activities in Dubai no longer require a UAE national sponsor. Foreign entrepreneurs can now hold 100% ownership of their mainland LLCs — particularly in sectors like:
- E-commerce
- Consulting
- Technology
- Media
- Manufacturing
What Happens After You Register?
Once your LLC is formed, you'll need to complete the following:
- Apply for establishment card (MOHRE)
- Register for VAT (if applicable)
- Open a corporate bank account
- Apply for residence visas (investor and staff)
- Maintain accounting records and file tax returns
- Ensure compliance with UBO, ESR, and AML regulations
Benefits of Working with a Business Setup Advisory
Setting up an LLC can involve over a dozen steps, multiple departments, and language/legal barriers. At Proxima Eight, we simplify the process by:
- Handling all government submissions and PRO work
- Drafting compliant legal documentation (MOA, POA, etc.)
- Structuring your company to align with tax and visa goals
- Assisting with bank account setup and post-license compliance
- Acting as your long-term business support partner in the UAE
Ready to Launch Your LLC in Dubai?
An LLC gives you the operational freedom and legal protection you need to thrive in one of the world’s most exciting business environments.
Book a free consultation with Proxima Eight to start your LLC formation in Dubai — with clarity, speed, and confidence.