What Is the Process for LLC Company Formation in Dubai?

Setting up a Limited Liability Company (LLC) in Dubai is one of the most common ways to start a business in the UAE. This business structure is ideal for commercial activities like trading, contracting, and manufacturing, and offers the flexibility to operate throughout Dubai and the wider UAE. Whether you are a foreign investor or a local entrepreneur, understanding the process for LLC company formation in Dubai is essential for a smooth and successful business setup.

The first step in forming an LLC is to define the business activity. Dubai’s Department of Economy and Tourism (DET) offers a wide list of permitted activities, and your chosen activity determines the type of license required—commercial, industrial, or professional. It’s important to choose the correct activity and ensure that any special approvals needed from other government authorities are arranged in advance.

Next, you’ll need to choose a trade name for your company. The name must be unique, follow UAE naming guidelines, and reflect the nature of the business. Once approved by the authorities, the name will be reserved for your business for a certain period.

After that, it’s time to select the legal structure. An LLC requires a minimum of 2 and a maximum of 50 shareholders. Previously, it was mandatory to have a UAE national hold 51% of the shares, but recent changes in UAE law allow 100% foreign ownership in most sectors and business activities, especially in the mainland.

The next step is to apply for initial approval from the DET. This is a no-objection certificate from the government that allows you to proceed with the next stages of the setup process. Once initial approval is received, the Memorandum of Association (MOA) is drafted. This document outlines the shareholding structure, roles, and responsibilities of each partner and is required to be signed in front of a notary public.

You must also secure a physical office space, as having an office is mandatory for an LLC license. Once the office is rented, you’ll need to obtain the Ejari certificate, which is a registered tenancy contract recognized by the government.

With all documents in place—including the MOA, Ejari, passport copies of shareholders, and initial approval—you can now submit your application for the trade license. The DET will review your file and issue the license upon successful verification.

Once your trade license is issued, the company is officially established. You can then apply for residence visas for yourself, your partners, and employees, as needed. The number of visas allowed typically depends on your office space and license type.

Finally, you can open a corporate bank account in the UAE. Banks may require copies of the license, shareholders’ documents, and a business plan, depending on the nature of your operations.

Summary of Steps:

1. Define your business activity
   
   

2. Choose and reserve a trade name
   
   

3. Determine shareholding and legal structure
   
   

4. Get initial approval from DET
   
   

5. Draft and notarize the MOA
   
   

6. Lease office space and get Ejari
   
   

7. Submit documents and obtain trade license
   
   

8. Apply for visas
   
   

9. Open a business bank account
   
   

Forming an LLC in Dubai is a well-structured process and, with the right guidance, can be completed in a short time—often within one to two weeks. The LLC structure offers excellent benefits including limited liability protection, access to the local market, and flexibility in business operations. With Dubai’s growing economy and investor-friendly regulations, it’s an ideal location for launching and growing your business.