How to Setup a LLC Company in Dubai, UAE

LLC Company in Dubai

Setting up an LLC company in Dubai can be a highly lucrative experience for entrepreneurs looking to start their company in the Middle East. Dubai’s strategic location, business-friendly environment, and favorable tax policies make it an ideal destination for starting a company in Dubai. 

What is a limited liability company?

An LLC is a type of business structure that combines the limited liability protection of a corporation with the tax benefits and flexibility of a partnership. This means that the owners of an LLC, known as members, are not personally liable for the debts and obligations of the company. In other words, if the LLC were to be sued or face financial difficulties, the personal assets of the members would generally be protected.

LLCs are relatively easy to set up and maintain compared to corporations. In most states, all that is required to form an LLC is to file articles of organization with the state and pay a small fee. Once the LLC is formed, the members can create an operating agreement, which outlines the rights and responsibilities of each member, as well as how the company will be managed.

What are the Benefits of Setting Up an LLC Company in Dubai?

Let’s first explore the numerous benefits of setting up an LLC company in Dubai. One of the key advantages is the ability to retain full ownership of your company. Unlike other business entities, an LLC allows expatriate entrepreneurs to have up to 100% ownership, without the need for a local sponsor. This gives you complete control over your business operations and decision-making processes.

Another significant benefit is the tax advantages offered by Dubai. The city has a zero percent corporate tax rate, meaning you can enjoy the profits generated by your LLC company without having to worry about bulky tax responsibilities. Also, Dubai’s strong economy, world-class infrastructure, and well-established legal framework provide a stable and secure environment for businesses to succeed.

It is important to understand the legal requirements for setting up an LLC company in Dubai. Firstly, you will need to appoint a local sponsor or service agent, who will act as a fling between your LLC company and the government authorities. While the sponsor does not have any control over your business, they are required by law to hold 51% ownership.

Step 1: Choosing a business activity for your LLC Company

Setting up your LLC company is choosing the business activity or activities you wish to engage in. Dubai offers a wide range of business activities across various sectors, including trading, manufacturing, services, and consulting. It is important to select activities that are aligned with your expertise and market demand. 

Once you have finalized the list of activities, you will need to get the necessary approvals from the relevant government authorities. The Department of Economic Development (DED) is responsible for issuing business licenses in Dubai. 

Step 2: Select a Company Name

The next step is to choose a unique name for your LLC company setup in Dubai. The name must not violate on any existing trademarks and should comply with the guidelines set by the Department of Economic Development (DED) in Dubai.

Step 3: Draft a Memorandum of Association

The Memorandum of Association is a legal document that outlines the company’s structure, activities, and rules of operation. It must be drafted and notarized by a legal professional in Dubai.

Step 4: Get Initial Approval

Once the Memorandum of Association is ready, you must submit it to the DED for initial approval. This step involves paying the necessary fees and providing all required documentation.

Step 5: Secure a Physical Office Space

Another requirement for setting up an LLC company in Dubai is having a physical office space. This office must meet the criteria set by the DED and serve as the company’s headquarters.

Step 6: Get a Trade License

To conduct business legally in Dubai, you need to get a trade license. The type of license required will depend on the nature of your business activities.

Step 7: Open a Corporate Bank Account

To manage your company’s finances effectively, you need to open a corporate bank account in Dubai. Having a local bank account is essential for conducting business transactions.

Once your LLC company is set up and operational, it is crucial to maintain compliance with all legal and regulatory requirements. This includes filing annual financial statements, conducting audits, renewing licenses and permits, and adhering to labor laws and regulations. It is advisable to engage the services of a professional accountant or audit firm to ensure accurate financial reporting and compliance with tax duties.


Setting up a Limited Liability Company (LLC) in Dubai, UAE can be a rewarding experience for entrepreneurs looking to start a business in the region. By following the steps outlined above and ensuring compliance with the regulations set by the authorities, you can establish your LLC smoothly and start operating your business in Dubai. If you have any questions or need further guidance on setting up an LLC in Dubai.

Connect with Neeja Corporate Services

Are you looking to start your company in Dubai but feeling overcome by the registration process? Don’t worry, you’re not alone. Setting up a business in a foreign country can be challenging, but with the right guidance and support, it doesn’t have to be a stressful experience. Neeja’s business setup services offers complete support and serve as a one-stop shop for company setup in Dubai. We provide a wide range of value-added services, such as license applications and VAT registration. Over the years, we have successfully advised many new entrepreneurs to make their business dreams a reality.

To book a free consultation, call on +971 43243031. You can also send a WhatsApp message at +971 50 465 2843. To connect over email, send us your query at [email protected].

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