Dubai stands as a beacon for global entrepreneurs, offering world-class infrastructure, a strategic location, and a thriving economy. For those looking to establish a presence here, the Mainland Limited Liability Company (LLC) is the most popular and flexible business structure.

Thanks to landmark legal reforms, setting up an LLC in Dubai is more attractive than ever, with 100% foreign ownership now available for most business activities. This means you can have full control over your enterprise while enjoying all the benefits of the UAE market.

This guide provides a complete, step-by-step overview of forming your LLC company in Dubai.

What is a Dubai Mainland LLC?

A Dubai Mainland LLC is a legal business entity registered with the Dubai Economy and Tourism (DET). The key feature is “limited liability,” which means the personal assets of the owners (shareholders) are protected from any business debts or liabilities. This creates a secure legal separation between you and your company.

The main advantage of a Mainland LLC over a free zone company is its freedom to trade directly with the entire UAE market and its eligibility to take on lucrative government projects without restriction.

 

Top 5 Benefits of a Dubai LLC Company

Choosing an LLC structure for your Dubai business comes with significant advantages:

1. 100% Foreign Ownership: For the vast majority of commercial and industrial activities, you no longer need an Emirati sponsor or partner. You maintain full ownership and control of your business.
2. Limited Liability Protection: Your personal assets, such as your home and savings, are legally protected from any risks or debts incurred by the business.
3. Unrestricted Market Access: Operate freely across Dubai and all other Emirates. You can open offices, cater to any customer within the UAE, and participate in government tenders.
4. No Corporate Tax: Dubai currently imposes a 0% corporate income tax on most businesses, allowing you to maximize your profits and reinvest in growth.
5. Enhanced Credibility: An LLC is a globally recognized and respected business structure, which enhances your company’s credibility with banks, clients, and potential partners.

How to Set Up Your LLC Company in Dubai (Step-by-Step)

The formation process is clear and systematic. Here are the essential steps:

Step 1: Choose Your Business Activity & Partners

• First, finalize the exact nature of your business from the list of over 1,000 approved activities. Then, identify all shareholders and define their ownership stakes.

Step 2: Reserve Your Trade Name

• Select a unique name for your company that complies with the UAE’s naming conventions and get it approved by the DET.

Step 3: Obtain Initial Approval

• Submit your application and the required documents (including passport copies of shareholders) to the Dubai Economy and Tourism (DET) to receive the initial approval, which confirms the government has no objection to you starting the business.

Step 4: Draft and Notarize Legal Documents

• Prepare the Memorandum of Association (MOA), which outlines the ownership structure and responsibilities of all partners. This document must be drafted and notarized by a public notary in Dubai.

Step 5: Secure a Physical Office Space

• All mainland companies must have a registered physical office address in Dubai. You will need to provide a valid tenancy contract registered with Ejari (the official online tenancy registration system).

Step 6: Submit Final Documents & Receive Your License

• Make the final payment and submit all your approved documents, including the MOA and Ejari, to the DET. Upon successful review, you will be issued your official LLC trade license.

Key Requirements for LLC Formation

To ensure a smooth process, you will need:

• A minimum of one director to manage the company.
• A manager to be appointed for the company.
• Clear passport copies for all shareholders and the appointed manager.
• A valid tenancy contract (Ejari) for a physical office in Dubai.
• Attested legal documents if a corporate entity is a shareholder.

Frequently Asked Questions (FAQ)

Q: Is a local Emirati sponsor still required for an LLC? A: No. For over 1,000 commercial and industrial activities, 100% foreign ownership is now permitted. However, for certain strategic activities (like in the oil and gas sector or financial services), different regulations may apply.

Q: What is the minimum capital requirement for a Dubai LLC? A: There is no longer a mandatory minimum share capital that you need to deposit in a bank. However, you must state a reasonable and sufficient capital amount in your Memorandum of Association.

Q: How long does it take to form an LLC in Dubai? A: The entire process can typically be completed in 1-2 weeks, provided all your documents are prepared correctly and in order.

Conclusion

Forming an LLC in Dubai is a powerful strategic move, offering unparalleled market access, liability protection, and now, complete foreign ownership. The process is clear and well-defined, making it accessible to entrepreneurs from around the world.

While the steps are straightforward, navigating the process efficiently requires expertise. To avoid potential delays and ensure a smooth setup, partnering with a company formation specialist is highly recommended.

Contact our team of experts today for a free consultation and let us guide you through every step of setting up your LLC company in Dubai.