Fundamentals of an LLC Company Formation in Dubai

The UAE is where the east meets the west and opens its market for global trading. This central trading hub allows foreigners to establish a firm foothold for your company anywhere around the world. Starting a new business in Dubai has become easier than ever since Dubai’s market has emerged as one of the best thanks to its free-market policies. The Limited Liability Company Formation in Dubai (LLC) is the most common form of business in the UAE. The potential benefits, such as secure ownership rights, government assistance, and ease of access to trade anywhere in the UAE and the GCC region, are the reasons why most investors prefer it.

Let’s take a look into the basics of an LLC Company Formation in Dubai, so you can set up your business and run your company in Dubai with great ease:

Local Sponsorship in Dubai:

While setting up an LLC company in the UAE, it is clearly stated by the laws that UAE/GCC National sponsors should hold 51% of the share. Nonetheless, a legal entity in the UAE can be owned by a minimum of 2 or a maximum of 50 shareholders. Although getting a local sponsor raises concerns over the ownership; however, a sleeping partner or corporate shareholder is an option available that helps you abide by the laws while being in full control of the ownership of the company, and the other party only acts as a representative to the government and provides you with legal protection.

Limited Liability Company formation in Dubai (LLC) is the most flexible, easy, cost-effective, time-efficient, and thus for the same reason, a viable option for the majority of the Business setups in Dubai. It also offers personal protection from liabilities. However, this form of business in Dubai substantially broadens your horizons to business activities when establishing a new company. 

Benefits of Company Formation in Dubai:

  • Affordable business form alternatives
  • Shareholder’s liabilities only limited to their shares in the company’s capital
  • No restriction on trade geographically
  • No restriction on real estate ownership
  • The company is not required to pay standard 5% customs duty on imported goods
  • LLC can obtain a Tax Residence certificate from the UAE Ministry of Economy
  • The government has permanently waived any paid-up capital requirements
  • Business owners can apply for multiple visas
  • A broad range of business activities available under each trade license

LLC Trade Licence:

An LLC can operate under the following Licensing types:

  1. Commercial: The commercial license is issued for an LLC that offers shareholders limited debts and liabilities. You can perform a maximum of 10 business activities under one license. It is issued to the company involved in any commercial trade activity, both general and specialized.
  1. Professional: The professional license provides the license holder (individual/ single-ownership company) the ability to establish a business in specific types of business sectors delivering talent-based services. The owner accounts for the sole responsibility for debts and liabilities. However, if more than one owner owns it, it will be called a civil company.
  1. Industrial: The industrial license allows a company in UAE to engage in industrial activities such as processing, manufacturing etc.

Requirements for an LLC Company Formation in Dubai 

  1. The company has to register in Dubai with the Department of Economic Development (DED).
  2. You must notarise your company’s Memorandum and Articles of Association (MOA).
  3. You will need to file and submit documents and Business License forms with the Department of Economic Development (DED).
  4. You must register your employees with the Ministry of Labour and General Authority of Pension and Social Security.

Read also: 10 Strategies That Will Help Improve Your Salesmanship

Setting up a business in Dubai is not as complicated as it may seem; pairing up with the right partner or companies like Corporate Business Services is all that you need. Such a group of companies helps you efficiently establish your company and provide you with strong legal protection, opening up a plethora of opportunities for your business setup in this global market.


Each company is unique, with its own set of hopes, dreams, and objectives. And the most crucial stage in turning those visions into reality is to join forces with a corporate sponsor or an individual local sponsor as your local partner. Your sponsor will assist you at each phase of your LLC Company Formation in Dubai and help you establish your company with complete transparency, explain the entire structure, and assist you with all legal procedures. To sum up, a suitable sponsoring partner is such that he accepts his responsibility or role and is continuously available for a smooth and efficient company formation endeavor in the UAE.

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