LLC company formation in Dubai: Step-by-Step

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LLC Company
Formation in Dubai, UAE
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Starting an LLC (Limited Liability Company) in
Dubai is one of the most popular and flexible
options for entrepreneurs and businesses looking
to establish themselves in the UAE. Moreover,
Dubai offers excellent transportation
infrastructure, including easy access to major
airports, making it a prime location for
businesses to operate efficiently. These
advantages make forming an LLC in Dubai a highly
attractive choice.
The LLC structure has gained significant
popularity in recent years, thanks to the
favourable laws introduced by the UAE government.
Investors and business partners can benefit from
the corporate structure, which combines the
flexibility of a straightforward business
partnership with minimal complications.
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What is the LLC Meaning in Dubai?
In Dubai, LLC stands for Limited Liability
Company, a famous business structure due to its
flexibility and shareholder legal protections. An
LLC provides limited liability, meaning that the
shareholders assets are protected, and their
liability is restricted to the extent of their
capital investment in the company.
The most common type of company in the UAE
mainland is the LLC (Limited Liability Company),
with the Dubai Department of Economic Development
(DED) being the official authority responsible
for issuing all LLC licenses. In addition to
this, the DED oversees the classification and
regulation of the economic activities that LLCs
are permitted to engage in, ensuring compliance
with local laws and regulations.
For LLC company formation in Dubai, recent
regulations allow 100 foreign ownership in many
sectors, eliminating the previous requirement for
a local Emirati sponsor. This gives foreign
investors complete control over their businesses
while enjoying access to Dubais local market and
international trading opportunities.
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Benefits of LLC Company Registration in Dubai
Local Market Access
An LLC allows companies to conduct business
directly in the UAE market, unlike free zone
companies restricted to operating within their
respective zones or internationally.
Ownership Flexibility
Since June 2021, the UAE has introduced laws
allowing 100 foreign ownership of LLCs in
various sectors, removing the need for a UAE
national sponsor.
Setting up a Limited Liability Company (LLC) in
Dubai offers several key benefits
Limited Liability
Shareholders in an LLC are only liable to the
extent of their shares in the company, protecting
personal assets from company liabilities.
Tax Advantages
Dubai offers a favourable tax environment with 0
corporate and personal income tax, though a 9
corporate tax is introduced for profits exceeding
AED 375,000.
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Setting up a Limited Liability Company (LLC) in
Dubai offers several key benefits
Broad Business Activity
LLCs can conduct various business activities,
including trading, manufacturing, and
professional services.
Flexibility in Location
LLCs can set up their business anywhere in Dubai,
not just limited to free zones, which provides
flexibility regarding office location.
No Minimum Capital Requirement
No minimum capital requirement for forming an LLC
makes entry more accessible.
Ease of Expansion
LLCs are well-suited for companies aiming to
expand into other parts of the UAE or the broader
Gulf region, as they can open branches in other
emirates without restrictions.
Residence Visa Eligibility
An LLC setup enables shareholders, employees, and
their families to apply for UAE residency visas.
These benefits make LLCs one of Dubais most
popular business structures for entrepreneurs and
investors.
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Types of LLC Licenses in Dubai
Dubai offers several Limited Liability Company
licenses tailored to various business activities.
Below are the details of each license type
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Commercial License
Professional License
Industrial License
Tourism License
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1. Commercial License
A commercial license is a legal authorisation
that allows individuals or businesses to engage
in commercial activities, such as selling goods
or services. It specifies the types of activities
permitted and requires compliance with local
regulations. Many licenses need periodic renewal,
with associated costs varying by jurisdiction.
Additional restrictions apply in places like
Dubai and Abu Dhabi based on the businesss
location.
2. Professional License
In contrast, the Professional License is intended
for professionals providing consultancy,
healthcare, legal, and educational services. This
license does not necessitate a local sponsor
however, a local service agent may be needed to
facilitate certain activities.
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3. Industrial License
The Industrial License is the appropriate choice
for manufacturing and industrial operations
businesses. It covers goods production,
processing, and assembly, requiring a minimum
capital investment and compliance with local
regulations.
4. Tourism License
Lastly, the Tourism License is aimed at
businesses in the tourism and hospitality sector,
including travel agencies, tour operators, and
hotel services. Obtaining this license involves
adhering to specific tourism regulations and may
require additional permits.
Each license type serves distinct business needs,
so its advisable to consult with a business
setup advisor just like Shuraa business setup for
guidance to your particular business model.
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Step-by-Step Guide to LLC Company Formation in
Dubai
To establish a Limited Liability Company (LLC) in
Dubai, you must comply with the UAE governments
legal frameworks and business guidelines. Heres
a step-by-step guide to help you through the
process of forming an LLC in Dubai
Step 1 Choose your Business Activity
Step 2 Reserve a Name for Your LLC Company
Step 3 Find a Location for Your LLC Company
Step 4 Select an Office Space
Step 5 Obtain Pre-approvals
Step 6 Apply for an LLC license
Step 7 Apply for Visa
Step 8 Open a Corporate Bank Account
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Documents Required for LLC Company Formation in
Dubai
To successfully form an LLC in Dubai, youll need
to gather the following documents

• Passport Copy A valid copy of your passport.
• Emirates ID A copy of your Emirates ID (for
  residents).
• Passport-sized Photo Recent and clear.
• Business Plan A detailed plan outlining your
  business objectives.
• Application Form Completed and signed.
• No Objection Certificate (NOC) If applicable,
  from your current sponsor or employer.

These documents are essential to ensure a smooth
LLC formation process in Dubai.
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Cost of LLC Company Formation in Dubai
The cost to register an LLC in Dubai starts at
approximately AED 18,500. If you choose a foreign
trade name or non-Arabic name, an additional fee
of AED 2,000 will apply. The cost to renew an LLC
license in Dubai ranges between AED 8,000 and
AED 15,000, depending on the business type and
other factors.
The cost of setting up a limited liability
company in Dubai for most economic activities is
almost the same. The only factors that may change
the cost are the number of visas applied for, the
chosen medical insurance, additional approvals
from relevant governmental authorities, and
foreign trade names.
Connect with our experts to get an exact quote
for LLC company formation.
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Start you LLC Company with Shuraa!
An LLC company formation needs you to have an
in-depth understanding of several business
dynamics in the UAE. Our business consultants
educate you about various LLC company
requirements and how to manage them.
We can become your silent local partners and give
you 100 operational ownership. Shuraa has
already helped 50,000 companies establish
themselves in the Dubai marketplace. Are you
ready to form your limited liability company in
the UAE? Connect with Shuraa, and well do it
together.
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THANK
YOU
Connect with the best business setup services
provider in Dubai, UAE
971 44081900, 971 507775554
info_at_shuraa.com
Office 501, 5th Floor, Aspin Commercial Tower,
Near Financial Center Metro, Sheikh Zayed Road,
Dubai, UAE
www.shuraa.com