FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
A Limited Liability Company (LLC) is the most common and flexible type of business entity for the UAE mainland. If you’re looking to establish a presence in Dubai’s local market, LLC company formation in Dubai is likely your best route. An LLC in Dubai can be formed with 1 to 50 shareholders, offers liability protection (shareholders are only liable to the extent of their share capital), and allows you to conduct a wide range of commercial or professional activities. Historically, forming an LLC in the UAE required a local Emirati sponsor holding 51% shares, but thanks to recent legal changes, in most industries you can have 100% foreign ownership of an LLC now. This makes the LLC model even more attractive to foreign investors and entrepreneurs.
As a UAE mainland company, an LLC can operate anywhere in the UAE and even expand abroad. You’re not confined to a zone or specific area – you can open offices/branches across Dubai or other emirates freely. LLCs also have the flexibility to engage in various business activities (some LLCs combine multiple related activities under one license). For example, you might trade in products and also provide certain services under one LLC if the license permits both. Another feature is the ability for an LLC to obtain unlimited visas (as long as you have sufficient office space to sponsor those employees). This makes it ideal for growing companies that will hire staff. Moreover, only an LLC (or other mainland entities) can bid for UAE government contracts or take on projects in restricted sectors inside the country, which is a big advantage if those opportunities matter to you. Forming an LLC requires a minimum of two shareholders (if you’re a single owner, Dubai now allows One Person LLCs, which function similarly but with one shareholder). There is no mandated minimum capital for most LLCs – you will declare a share capital in the Memorandum (often AED 100,000 as a standard figure), but you don’t have to deposit this in a bank unless required for specific activities.
To set up an LLC, we will reserve a company name, prepare the Memorandum of Association (MOA) stipulating ownership percentages and business scope, and submit an application to the Department of Economy & Tourism (DET, formerly DED) in Dubai. If your business activity needs external approval (e.g., a real estate brokerage needs a license from RERA, healthcare needs DHA approval, etc.), we coordinate that concurrently. Once initial approval is granted and the MOA is notarized, we finalize the license issuance by paying the license fees. The MOA for an LLC in Dubai must be notarized at a notary public – our team will schedule this and accompany you (and your partner if any) for signatures. Thanks to recent updates, if you’re the sole owner (100% foreign), we ensure the MOA reflects that clearly; if an Emirati partner is required or chosen, we structure the agreement to protect your interests (many people use side agreements in such cases, but we also recommend businesses now to avoid activities needing mandatory local partners when possible, to maintain full control). After the license is out, we assist in registering the company with the immigration and labor departments so your LLC can sponsor visas for you and employees. We also help with opening the bank account by preparing the incorporation documents and introduction to bankers.
As mentioned, most new LLCs no longer need a local sponsor with majority shares. However, you might still opt to have a local UAE national partner for strategic reasons or because your sector demands it. If a local sponsor is needed, we can introduce trustworthy sponsors and draft nominee arrangements. They typically will be given an annual fee for their sponsorship role (as per market practice) and will not interfere in business operations – all profits and decision-making can be yours as per side agreements. That said, in sectors fully open to 100% expat ownership (which are many), we advise going fully on your own. In some professional setups (like a consultancy), instead of an equity partner, you have a local service agent. We provide a reliable service agent if required, to handle liaising with ministries on your behalf as needed for license renewals, etc., for a fixed fee. We clarify these points so you are completely comfortable with the ownership and control structure of your new LLC.
Let FAZAK guide you. We specialize in LLC setups, ensuring your paperwork is correct and your interests are protected. With our support, establishing your Dubai LLC will be fast, secure, and tailored to your business needs. Get in touch today to start your LLC in Dubai – and take advantage of Dubai’s thriving market with your fully-owned company.
The basic requirements include at least one shareholder (and up to 50) – the shareholder can be an individual or a corporate entity. You’ll need a Trade Name approved for your LLC and a defined business activity (or activities) that the company will conduct. At least one manager needs to be appointed (often one of the shareholders can also be the manager). There is also a requirement to rent an office space in Dubai (even a small one) and obtain an Ejari (tenancy registration) for that lease to complete licensing. Additionally, the shareholders and manager must provide copies of their passports, and if any are UAE residents, copies of their residence visas and NOC from current sponsor. We will draft the Memorandum of Association (MOA) for the LLC, which all partners (or their power of attorney holders) sign before a notary. If your chosen business activity is specialized (for example, a tourism business needs DTCM approval, or a finance-related business might need Central Bank or other authority nod), we’ll secure those approvals. Finally, you pay the license fees to DED/DET and the license is issued. In summary: choose name and activity, prepare IDs and paperwork, sign MOA, have an office lease, and pay fees – then you get your LLC license.
There is no fixed limit on the number of visas for a mainland LLC – it generally depends on your office space and actual operational needs. The rule of thumb is approximately one visa per 8 to 10 square meters of office space for offices in Dubai. So if you have a 50 sqm office, you might be eligible for around 5-6 visas by default. However, if you need more and can justify (and maybe take a larger space), you can get many more. Some activities (like restaurants, construction) inherently might allow more staff visas given the nature of business. In contrast, a free zone company often comes with a set quota (e.g., 2 visas for a flexi-desk, or up to 6 for a small office, etc., unless you rent bigger space). One advantage of an LLC is if you needed to scale up your workforce significantly, you have flexibility as long as you upgrade your office accordingly. We help in processing each visa and can guide you on how to increase your visa quota when you grow.
Yes, all companies in Dubai (and UAE) must renew their trade license annually. For an LLC, the renewal is done through the Department of Economy & Tourism. To renew, you need a valid tenancy contract (lease) for your office for the next year and must pay the renewal fee which is similar to the initial license fee minus one-time charges. If you had any local sponsor or agent, their fees for the year would also be due. Also, any company cards like the immigration establishment card need renewal (usually every 3 years). We handle license renewals for our clients by preparing the papers (like updated lease/Ejari, any required attestations) and submitting the renewal online. It’s a quick process if all documents are in order – usually completed in a day or two. Missing the renewal deadline can incur fines, so we’ll remind you ahead of time to avoid that.
Yes, an LLC can have multiple business activities as long as they are compatible and approved under the same license. For instance, you could have an LLC that does trading in garments, electronics, and furniture – those are all trading activities and can be grouped. What you typically cannot do is mix activities from very different categories like manufacturing, trading, and medical clinic all in one LLC – those would require distinct licenses. If you need to do diverse things, one strategy is to create a holding LLC with several branches, each branch carrying out a specific activity (Dubai allows an LLC to establish branches that can have different activities). We will check the activity list and advise how many activities can be clubbed. There might be a small fee for each additional activity added on the license beyond the first one. But Dubai authorities are quite flexible in allowing broad licenses, especially under general trading or investment or consultancies, etc. We ensure your company’s objectives are fully covered by the activities listed on the license.
The UAE has introduced a federal corporate tax (CT) of 9% on business profits effective June 2023. However, there is a threshold of AED 375,000 – profits up to this amount per year are taxed at 0%, and only the amount above is taxed 9%. Also, many businesses due to legitimate expense deductions or small scale might fall under or near that threshold and have minimal tax. Free zone companies that do not earn income in mainland UAE are, for now, able to maintain a 0% tax rate (as part of UAE’s commitment to free zone incentives). If your LLC is only doing business within UAE, after the threshold you’d pay 9% on profits. It’s still a very low tax environment compared to most countries. Additionally, there are no taxes on dividends or personal income – so if you pay yourself from the company profits, that personal income is tax-free. Our team can further advise you on tax registration and compliance (and note that if you’re below the profit threshold, you still file a return but owe zero). We also assist with VAT (5% value-added tax) registration if your sales exceed AED 375,000/year – that’s a separate requirement. Keeping proper accounts will be important moving forward, and we can connect you with affordable accounting solutions as needed.
