Starting an LLC in Dubai?
Dubai is home to a wide range of businesses from trading to construction, manufacturing, real estate, and more. Many of these businesses are formed as a Limited Liability Company (LLC). The LLC structure comes with many advantages that can put you ahead of the game in the UAE market and keep you protected when you need it most.
How do you start an LLC company in Dubai? The process is designed to be easy, but if it's your first time, you might not know where to start. Below, we'll explore the LLC legal structure and show you what you need to know to start your business in Dubai off right.
What is an LLC in the UAE?
An LLC is a commonly used legal structure that limits the liability of shareholders to that of the initial investment. This protects investors’ assets from business liabilities and makes operating in the UAE a safe venture.
Companies operating under the LLC structure are permitted to take on almost any business activity outside of banking, investments, and insurance.
The Regulatory Authority for LLCs in the UAE
In the UAE, LLCs are generally presided over by the authority in that particular Emirate. For Dubai, this is the Department of Economic Development (DED). The DED is responsible for registering companies and regulating the many Free Zones in the region. Some of the key responsibilities of the DED Include:
- The issuance of business licenses
- Approving trade names
- Regulating business activities
- Maintaining legal compliance
- Supporting business growth
While the DED provides clear guidelines for establishing an LLC in Dubai, navigating the process can be overwhelming for first-time business owners. For this, MSZ Consultancy can help. We can assist you with starting your business in the UAE, including handling legal structuring, maintaining compliance with local regulations, and navigating day-to-day operations.
How to Set Up an LLC in the UAE?
Starting your own LLC in Dubai may seem daunting, but it's a simple process with the right guidance. Here's a step-by-step guide to help you navigate the journey:
- Choose Your Business Activity - The first step is deciding what type of business you want to establish. Dubai allows for a wide range of activities, from trading and manufacturing to consulting and professional services. Knowing your business activity will help determine your license type and legal requirements.
- Select a Trade Name - Pick a unique and compliant trade name for your company. Make sure the name reflects your business activity and adheres to UAE naming conventions (e.g., no offensive language or references to religious or political organizations). Submit it to the DED for approval.
- Obtain Initial Approvals - Submit your business plan and required documents to the DED to get initial approval. This step verifies that your business complies with local regulations.
- Submit Documents and Obtain Your License - Once everything is in place, submit the documents to the DED. These typically include the MoA, trade name approval, tenancy contract, and shareholder details. After approval, you’ll receive your business license.
- Secure Office Space - As part of the licensing process, you'll need to lease a physical office or workspace. The lease agreement, also called a tenancy contract, must be registered with the Ejari system.
- Open a Corporate Bank Account - With your license in hand, open a business bank account in the UAE to manage your company's finances. Different banks have varying requirements, so choose one that best suits your needs.
- Apply for Visas - You can now apply for your own visa and, if applicable, visas for your employees and family members. The process includes medical tests, Emirates ID applications, and visa stamping.
Required Documents for Starting an LLC in Dubai
Before sending off your license application, you’ll want to gather the necessary documents. These documents can include, but are not limited to:
- Application Certificate from DED
- Business Plan
- Passport or valid identity cards
- Passport of a local sponsor
- Copy of Emirates IDs
- Memorandum of Association
- No Objection Certificate if the shareholder is working in a UAE company
- Tenancy contract
The Benefits of Establishing an LLC in Dubai
There’s a reason so many entrepreneurs have traveled to the region to start their business ventures! Let’s look at just a few of the things that make Dubai a global hub for investors of all shapes and sizes:
- Tax Advantages - Businesses operating in Dubai are often exempt from certain tax responsibilities, including income taxes.
- Quick Setup - Starting your LLC in Dubai is a quick, easy process. In fact, you can register your business with the DED in as little as two hours.
- Diverse Business Options - The UAE is home to thousands of different business activities. From tourism to manufacturing, there’s a little bit of everything here.
- 100% Foreign Ownership - Most businesses here are not required to have a UAE national sponsor. This allows business owners more freedom and complete control over their business.
The Cost of Getting Your LLC in Dubai
In most cases, you can expect the cost of forming your LLC in Dubai to range between AED 12,000 and AED 15,000, depending on the business activity you choose. Further, you'll want to be aware of some additional fees and expenses, including visa costs, office spaces, registration fees, and more.
Working with a business consultant like MSZ can help you minimize costs and maximize potential at the same time. We can guide you through the setup process from start to finish, and make your business experience in the UAE easy, hassle-free, and financially rewarding.
MSZ is Your Premier Partner for Starting an LLC in Dubai
From handling business registration to maintaining regulatory compliance, there’s a lot that goes into forming an LLC. But with the right partner at your side, you’ll be able to focus on what matters and push your investments to the next level. Our experts have years of experience in navigating day-to-day operations, including Free Zone business setup, Mainland business formation, PRO services, and much more.
Give your business the infrastructure it needs for success. Call MSZ today at +971 52 544 1248. We’ll provide you with a FREE quote, a custom-tailored business plan, and a strategy to take your business to great heights.