An Overview of LLC Company Formation in Dubai

12Apr, 22

An Overview of LLC Company Formation in Dubai

Dubai is a one-of-a-kind city that combines the best of the Middle East and the West. It is one of the most alluring business locations on the globe. As a result, it's obvious that many people are interested in knowing more about LLC Company Formation in Dubai.

In this blog, we'll explain the quickest, most cost-effective, and simplest way to form an LLC for those seeking to set up a business in Dubai!

What Are the Criteria for forming an LC?

The fact that an LLC requires only two shareholders makes it extremely popular among startups. An LLC can have up to 50 shareholders. However, according to the rules, the firm's 51 percent shareholding must be held by a UAE national.

Only UAE or GCC nationals can set up a single partner LLC. In order to legally conduct business as an LLC in Dubai, owners must incorporate and obtain a license from the Department of Economic Development, or DED.

How to Establish a LLC Company in Dubai?

A registered agent is essential for LLC Company Formation Dubai. The entity that will receive all legal interaction on behalf of your Dubai company is known as the registered agent. They will also be in charge of providing any such documents to you or another designated representative.

The following step is to select a company name. This must be approved by the Department of Economic Development (DED), and it must not be in use at the time. Once you've completed both of these steps, you'll be able to apply for your company license and start doing business!

LLC Company Formation Dubai is a relatively simple process, but there are a few things to keep in mind. The most important thing is to select a registered agent and ensure that the business name you wish to use is available. If you require assistance in establishing your LLC company in Dubai, we are glad to assist you!

Entrepreneurship in Dubai

So after that, you must determine whether you require an E-commerce License. It is critical to distinguish between providing services and selling products in the UAE. If your company sells tangible goods in the UAE through online platforms, you will need an e-commerce license.

 You do not need an e-commerce license if you are a business consultant who offers online courses. Instead, you'll need a professional certificate to provide your professional services to clients. If you sell digital items and use payment gateways or the internet, you do not need an e-commerce license.

If you're unsure, consult with a company formation expert like Dhanguard. Our experienced experts will be able to tell you about the best licensing tips and activities to pursue for your online business.

Read more: 6 Reasons Why you Should Invest in LLC Company Formation in Dubai 

Benefits of Forming an LLC in Dubai

Here are some of the advantages of an LLC:-

  • The shareholders' liability is limited to their shares in the company's capital.

  • Except for insurance, banking, and investment, an LLC may engage in any type of activity.

  • An LLC is permitted to conduct business in the UAE, including the Freezones.

  • There are no limitations on the number of visas that can be obtained;

  • There are no restrictions on where the company can rent or buy office space.

  • Any paid-up capital requirements have been permanently waived by the government.

Drawbacks of forming an LLC in Dubai

Here are some of the disadvantages of an LLC:-

  • Employee visas must be renewed every two years (Freezones are valid for three years).

  • It takes longer to establish a company than a Freezone company, typically 8 to 10 weeks;

  • External approvals from UAE government ministries may be required, which is both costly and time consuming.

The Cost of Setting up A company in Dubai

The costs of establishing a company in Dubai vary depending on the type of business you want to establish. The cost of forming an LLC would be around AED 2500, including registration fees and other government charges. It will cost more to open a branch or representative office, typically in the range of AED 7000-8000. For a more accurate estimate, use our business setup cost calculator.

Using a company formation specialist to set up an LLC in Dubai is the most cost-effective option. This will ensure that you are doing everything correctly and avoiding any costly errors!

Does LLC Company Formation in Dubai Include a Visa?

This is a general question, and the answer is, unfortunately, no. The company formation process in Dubai does not include the issuance of a Visa

If you want to come in Dubai to work for your LLC, you must apply for an employment visa. It can be done through the Department of Immigration and Naturalisation. In order to be permitted for a work visa, you must have a job offer letter from a company in Dubai and fulfill any other requirements.

How to Form a LLC Company in Dubai?

You could be the owner of a UAE company in just a few simple steps. The procedure is simple, and our team will walk you through each step to ensure that your business setup in Dubai goes as smoothly as possible.

Let's see how it works:

  • First, you must select a registered agent. This is the entity that will act as your company's representative and receive all legal documents on its behalf.

  • Following that, you must choose a company name and ensure that it is approved by the Department of Economic Development (DED).

  • Finally, you must apply for your company license and begin business operations!


There are few restrictions on the kind of company that can be formed, and members of LLCs have limited liability.

For entrepreneurs from all over the world, starting a business in Dubai is an appealing proposition. The city provides a favorable tax system, 100 percent foreign ownership, and a wide range of government support services. Dhanguard can assist you every step of the way if you want to start a business in Dubai.