Setting up a Dubai LLC company is one of the most popular ways for entrepreneurs to establish their business in the UAE. It offers flexibility, legal protection, a wide choice of business activities, and access to one of the world’s fastest-growing and dynamic economies.
Dubai isn’t just a global city. It is a business launchpad. Entrepreneurs here benefit from a strategic location between East and West, investor-friendly policies, and a tax regime designed to attract international talent and capital. Among all the structures available, the limited liability company (LLC) stands out as the most versatile option for those who want to trade locally, hire staff, and scale confidently.
The results? Dubai’s economy grew by 4% in the first quarter of 2025, showing the strength of its business landscape. Investment-friendly policies, 100% foreign ownership, and tax incentives mean there’s never been a better time to start a business in Dubai.
In this guide, we’ll take you through everything you need to know about Dubai LLC company setup: what it is, how to form one, what it costs, and the paperwork needed. Plus, we’ll show why thousands of entrepreneurs choose Creative Zone to make the process seamless.
What is an LLC company in Dubai?
A Dubai LLC company is a limited liability company, allowing investors to operate in a wide range of business sectors. It’s a legal structure where the liability of shareholders is limited to the value of their shares invested in the business. And because of this, it’s one of the most widely used forms of company setup in Dubai.
Looking closer, LLCs are flexible legal structures that combine the advantages of a corporation with a partnership – providing simplified management and 100% foreign ownership.
This means that if the company faces debts or liabilities, the shareholders’ personal assets remain protected. LLCs are regulated by the Dubai Department of Economy and Tourism (DET) for mainland companies, giving you the flexibility to trade both within the UAE and internationally.
Unlike free zone companies, which are often limited to certain activities or geographies, LLCs provide broad scope: from retail stores and restaurants to consultancies and trading companies, and more. This is why they are the structure of choice for most small and medium-sized enterprises (SMEs) in Dubai.
LLC company formation in Dubai: Step-by-step process
Forming an LLC in Dubai involves a series of steps, including choosing a business activity and trading name, securing initial approval, drafting the Memorandum of Association, signing a tenancy agreement for a business location, submitting paperwork to the DET, applying for visas, and opening a corporate bank account.
Step 1: Choose your business activity
Your first step is identifying your business activity. Dubai offers more than 2,000 activities approved by the DET, ranging from trading, consulting, tourism, and services to manufacturing, commerce, agriculture, and more.
The business activities you select determine the type of trade license you need to get. You can choose from: commercial, professional, industrial, or tourism. This is where partnering with a business setup expert – like Creative Zone – can save you time, money, and stress.
Step 2: Decide on a company name
Trade names in Dubai must follow strict rules: no offensive words, no religious or political references, and must be unique. Once the DET’s reviewed and approved it, they’ll issue you a trade name reservation certificate.
Step 3: Apply for initial approval
Initial approval is a no objection certificate from the DET that gives you the green light to proceed with your Dubai LLC business setup. It’s a vital step before you can begin drafting your legal documents.
For this step, you’ll need to send in the following documents to the DET:
- Passport copies and passport-sized photos of all shareholders
- Trade name reservation certificate
- List of your business activities and license type
It’s worth mentioning here that some regulated sectors, such as finance, education, or healthcare, may need additional approvals from authorities like Dubai Municipality and other government agencies.
Step 4: Draft the Memorandum of Association (MoA)
The Memorandum of Association (MoA) is a crucial document that defines shareholder responsibilities, the company’s ownership structure, and share distribution. A public notary in Dubai must notarize it and also translate it into Arabic.
Step 5: Secure a business location
All LLCs need a registered business address on file with the DET. Depending on your business activities, this could be a physical office, retail space, warehousing, or even a serviced desk. You need to register the tenancy contract with Ejari, the registry of tenancy contracts.
Step 6: Submit documents to DET
When your MoA and tenancy lease paperwork are ready, send them over to the DET along with all supporting documents needed (which we listed in the next section).
Step 7: Receive your trade license
On approval, the DET issues your LLC trade license. This officially recognizes your company as a legal entity in Dubai.
Step 8: Apply for visas
After that, shareholders, employees, and their families can apply for UAE residency visas under the company’s sponsorship. This also means that every visa applicant needs to undergo mandatory medical testing and processing for their Emirates ID.
Step 9: Open a corporate bank account
Lastly, you’ll need a business bank account to operate in the UAE. Every bank has its own requirements, but your trade license, MoA, and Emirates ID are essential. We’ll introduce you to the banks best suited for your type of business.
Documents required to open an LLC company in Dubai
The paperwork needed is straightforward but must be accurate. You’ll typically need:
- Passport copies of all shareholders and managers
- Recent passport-sized photos with a white background
- Visa copies and Emirates IDs of UAE residents (if applicable)
- No objection certificate (NOC) for residents under a sponsor
- Memorandum of Association (MoA) signed and notarized
- Tenancy contract registered with Ejari
- Initial approval certificate from DET
It’s important that these documents are correct and complete. Errors or missing information will slow the process. This is why investors work with business setup specialists like Creative Zone to streamline the application process.
Advantages of LLC company formation in Dubai
The benefits include 100% foreign ownership, numerous tax breaks, multiple visa eligibility, and a broad scope of business activities.
100% foreign ownership
One of the major changes in recent years is that mainland LLCs across most business sectors can now be 100% foreign-owned. Previously, foreign investors needed to partner with a local Emirati sponsor who would hold 51% of the company’s shares. Today, most sectors no longer have this requirement, which means that entrepreneurs have the freedom to fully control their companies.
For global investors, this ownership reform is a game-changer. It allows you to build your business in Dubai with the same freedom as you would expect in your home country – but still enjoying all the benefits of doing business in the UAE. It also means you can repatriate profits in full, maintain complete control over your company’s management decisions, and protect your intellectual property without compromise.
Tax benefits and incentives
One of the best aspects of Dubai is its tax framework. Individuals benefit from zero personal income tax and no withholding taxes on dividends or capital gains. Recently, the UAE introduced a 9% corporate tax for businesses earning profits above AED 375,000, although many companies – mainly startups, SMEs, and those that fall below the tax threshold – continue to pay no corporate tax at all.
Companies based in designated sectors (or free zones) may still qualify for exemptions and incentives, depending on their business activity. These tax breaks not only boost profitability but also make Dubai a highly attractive destination for reinvestment and long-term growth. For investors comparing global markets, the UAE consistently ranks among the top for ease of doing business, mainly due to its tax-friendly environment.
Multiple visa eligibility
Another significant benefit of setting up an LLC in Dubai is that it can sponsor residency visas for shareholders, employees, and their families. This gives business owners stability and makes it easier to attract skilled professionals from around the world.
The size of your office space determines how many visas your company can obtain: simply put, the larger the premises, the more visas you can get. This gives you the flexibility to scale your workforce as your business grows. For many entrepreneurs, this is essential: you can start small with a flexi-desk package and expand into a full office as your staff complement grows.
Residency visas also unlock wider benefits, including access to the UAE’s world-class healthcare, education, and banking infrastructure. For international talent, this is a powerful incentive to join your company.
Wide range of business activities
One of the greatest advantages of an LLC is its versatility. Unlike some structures that limit you to certain activities or locations, LLCs allow you to choose from over 2,000 business activities approved by the DET.
Whether you’re opening a restaurant, launching an e-commerce venture, setting up a consultancy, or establishing a trading company, an LLC gives you the flexibility to operate within Dubai and across the UAE. This wide range of options is why LLCs are the go-to choice for entrepreneurs and SMEs who want freedom to diversify their operations in the future.
LLCs also enjoy the credibility of being licensed directly by the DET. For many customers and partners, this provides additional confidence when entering into contracts or doing business with your company.
Types of LLC licenses available in Dubai
LLCs in Dubai are designed to be flexible, but every business must hold a valid trade license that matches the type of business activity. The four main types of licenses are commercial, professional, industrial, and tourism.
1. Commercial license
A commercial license is the most widely used type of trade license for LLCs in Dubai. It is specifically issued to companies engaging in trade activities, such as import, export, and distribution of goods. Businesses such as retail shops, e-commerce companies, general trading firms, and wholesale distributors all fall under this category.
A commercial license enables your company to trade both locally within Dubai and internationally. This gives you access to the UAE’s booming consumer market as well as global trade routes. Dubai’s strategic location between Europe, Asia, and Africa makes this business license especially attractive to entrepreneurs who wish to set up supply chains that connect multiple regions.
2. Professional license
A professional license is for businesses that offer services rather than dealing in goods. This includes consultancy firms, IT service providers, marketing and media agencies, accounting firms, medical clinics, educational services, and the like. In some cases, you may need to provide proof of professional qualifications, particularly if your business is in a regulated field like law, finance, medicine, or engineering.
Holding a professional license enhances credibility, especially when offering specialized services to corporate clients or government bodies. It also ensures your operations meet Dubai’s strict regulatory standards for service providers. For entrepreneurs in knowledge-based industries, this license is invaluable.
3. Industrial license
An industrial license is for companies involved in manufacturing, processing, or industrial production. Examples include food and beverage factories, textile manufacturers, metal workshops, and packaging plants. Because of the nature of these activities, an industrial license typically needs additional approvals from external authorities such as Dubai Municipality, the Ministry of Health, or the Ministry of Environment and Water, depending on the type of goods produced.
This license enables companies to produce and distribute their own products, which supports Dubai’s wider vision of becoming a hub for advanced manufacturing and innovation. Thanks to world-class infrastructure, logistics, and access to global shipping lanes, Dubai is an ideal base for businesses wanting to scale production while serving both local and international markets.
4. Tourism license
A tourism license is for businesses in the hospitality and travel industries. This includes travel agencies, tour operators, hotels, holiday homes, and event management companies. The license is issued and regulated by the DET, reflecting the strategic importance of tourism to the emirate’s economy.
Dubai is one of the world’s top travel destinations, attracting over 18 million visitors annually. Holding a tourism license allows businesses to tap into this thriving sector by offering services like guided tours, travel bookings, hotel reservations, or corporate events.
Cost of Dubai LLC company setup
The cost of setting up an LLC in Dubai varies depending on your business activity, visa requirements, and business location. Here’s a breakdown:
License fees and registration charges: Expect to pay between AED 15,000 and AED 25,000 for trade license issuance, business registration, and government approvals.
Investor visa costs: Each investor visa typically costs AED 3,500 to AED 6,000. This figure covers medicals, Emirates ID, and visa stamping.
Employee visa costs: Visas for staff range from AED 4,000 to AED 7,000, depending on their role and visa category.
Renewal expenses: Annual trade license renewals usually cost between AED 10,000 and AED 15,000, excluding rent and staffing.
While costs vary, they are relatively low compared to other global hubs. The long-term benefits of doing business in Dubai often outweigh the initial costs. When you work with Creative Zone, you get a clear, upfront quote so you don’t have to worry about hidden fees or extra charges.
What to consider before forming an LLC in Dubai
Before setting up your Dubai LLC company, you need to consider licensing and regulatory requirements, share capital requirements, staffing and recruitment aspects, and compliance and renewals.
Licensing and regulatory requirements
Not all activities are regulated in the same way. Some, like healthcare, education, or finance, need approvals from external authorities. This can add time and extra steps to your setup, so it’s best to double-check the requirements at the outset to avoid any surprises. Creative Zone advisors can guide you through which approvals apply and how to secure them quickly.
Share capital considerations
Dubai has removed minimum capital requirements for most LLCs, but regulated industries may still need proof of financial backing. Even when not mandatory, declaring an appropriate share capital is often seen as a sign of trustworthiness by banks and partners. It’s wise to set a realistic amount that reflects your business goals and industry.
Staffing and recruitment
The size of your office impacts your visa quota. Plan ahead to make sure your staffing needs can be met. This makes workforce planning a critical part of your setup, especially if you anticipate hiring a larger team or scaling quickly. Creative Zone can help you match your premises to your future staffing requirements.
Compliance and renewals
Annual license renewal, tax filing, and accounting compliance are mandatory. Missing deadlines can lead to fines. Staying on top of renewals and financial reporting ensures your company remains in good standing with Dubai authorities.
Frequently asked questions
Do I need a local sponsor for an LLC in Dubai?
No, in most cases, you can now own 100% of your LLC. Some strategic sectors may still require a local partner.
How many partners can an LLC have?
An LLC can have between 2 and 50 shareholders.
Is there a minimum share capital requirement?
Most LLCs no longer have a fixed minimum capital requirement, though some industries do.
How much does it cost to renew an LLC license in Dubai?
License renewal costs typically range from AED 10,000 to AED 15,000 per year.
Why choose Creative Zone for your LLC company setup in Dubai
Forming a company in Dubai is a milestone moment – but it doesn’t have to be complicated. With Creative Zone by your side, the process is streamlined from start to finish.
Here’s what sets us apart:
- End-to-end support: From business setup to visas, accounting, and compliance.
- Tailored solutions: Packages designed for startups, SMEs, and multinationals alike.
- Expert advisors: A team that understands the Dubai market inside out.
- Proven success: Since 2010, over 75,000 businesses have trusted Creative Zone to help them grow in the UAE.
When you choose Creative Zone, you’re not just opening a company – you’re joining a community of ambitious entrepreneurs building their future in Dubai.
Are you ready to take that step? Contact Creative Zone today.
