What’s the Process for LLC Company Formation in Dubai, UAE?

What's the Process for LLC Company Formation in Dubai, UAE

Choose a Business Activity

The first step in forming an LLC in Dubai is selecting the business activity you intend to engage in. Dubai has a wide range of business activities across various sectors, so choosing the activity that aligns with your business goals and objectives is important.

Select a Local Sponsor

Determine the Company Structure

Decide on the ownership structure of your LLC. You can have multiple shareholders, both individual and corporate entities, as part of the ownership structure. This step involves outlining the distribution of shares and responsibilities among the shareholders.

Choose a Company Name and Get Approval

Selecting a unique and meaningful company name is crucial. The name should reflect your business activity and comply with the naming guidelines the Department of Economic Development (DED) set. After finalizing the name, submit it for approval.

Prepare the Memorandum of Association (MOA)

The Memorandum of Association outlines the company’s activities, shareholders’ details, and their respective shares. It also defines the company’s objectives and responsibilities. Draft the MOA and have it notarized by a Dubai notary public.

File the Documents with the DED

Submit all required documents to the DED, including the approved company name, MOA, and other relevant paperwork. This step involves paying the necessary fees as well.

Obtain Necessary Approvals

Depending on your business activity, you may need approvals from specific government authorities or regulatory bodies. For example, if you’re starting a healthcare-related business, you’ll need approvals from the Dubai Health Authority (DHA). Work closely with your local sponsor to ensure you have all the required approvals.

Secure a Business License

You can apply for your business license once you’ve obtained the necessary approvals. The type of license you need will depend on your business activity. The DED issues licenses for commercial, professional, and industrial activities.

Lease a Business Premises

Having a physical address is essential for your business operations. Lease suitable business premises that comply with the requirements set by the DED.

Finalize Visa and Labor Approvals

You must apply for their visas and labour approvals through the Ministry of Human Resources and Emiratisation (MOHRE) to hire employees. This step involves meeting specific criteria related to the size of your office space and the nature of your business.


Starting an LLC in Dubai, UAE, is a well-structured process involving careful planning, regulation adherence, and collaboration with local authorities. Following these steps, you can successfully establish your business presence in Dubai and take advantage of the thriving business environment. If you’re ready to embark on this journey, QuickBiz will assist you at every step, ensuring a smooth and efficient LLC company formation process tailored to your business needs.

Frequently Asked Questions (FAQs) about LLC Company Formation in Dubai, UAE

Q1: What is an LLC, and why is it a popular choice for company formation in Dubai?

A1: A Limited Liability Company (LLC) is a business structure that combines a corporation’s limited liability protection with a partnership’s flexibility and simplicity. In Dubai, an LLC is preferred due to its benefits, like limited liability, ease of establishment, and the ability to engage in various business activities. It allows foreign investors to have up to 49% ownership while a local sponsor holds the remaining 51% ownership, making it a widely used structure for foreign businesses in the UAE.

Q2: How do I choose the right business activity for my LLC in Dubai?

A2: Choosing the right business activity is crucial for the success of your LLC. Dubai offers diverse activities across sectors like trading, services, manufacturing, and more. Selecting an activity that aligns with your expertise and market demand is important. Conduct thorough market research, consider your business goals, and evaluate the competition to make an informed decision.

Q3: Can I fully control my LLC if a local sponsor holds 51% ownership?

A3: While a local sponsor must hold at least 51% ownership in certain business activities, you can still maintain operational control through well-structured shareholder agreements. These agreements outline the distribution of profits, decision-making processes, and responsibilities among shareholders. With a carefully drafted agreement, you can ensure that your interests and control over the business are protected.

Q4: What steps are involved in obtaining necessary approvals for an LLC?

A4: Obtaining approvals for an LLC involves multiple steps. First, you’ll need to gain preliminary approvals from relevant government departments based on your business activity. This might include approvals from authorities like the Dubai Municipality, Dubai Health Authority (DHA), or other sector-specific regulatory bodies. Working closely with your local sponsor and consulting with business setup experts can streamline this process.

Q5: What types of business licenses are available for LLCs in Dubai?

A5: Dubai offers three main types of business licenses: commercial, professional, and industrial. A commercial license suits businesses engaged in trading activities, while a professional license suits service-based businesses like consultancy or healthcare. The industrial license is for companies involved in manufacturing or industrial activities. Choosing the right license type depends on your business activities.

Q6: How long does it take to complete the LLC company formation process in Dubai?

A6: The timeframe for completing the LLC formation process varies depending on factors such as the business activity, the efficiency of documentation submission, and the approval process. On average, it can take 2 to 6 weeks to finalize all the necessary steps and obtain the required licenses.

Q7: Can I start an LLC in Dubai without a physical office space?

Q8: What role does a local sponsor play in LLC company formation?

A8: A local sponsor, a UAE national, plays a vital role in LLC company formation. They hold at least 51% ownership of the company in certain business activities, as UAE law mandates. While they are not involved in the day-to-day operations, they contribute to the legal requirements and government relations, ensuring compliance with local regulations.

Q9: What post-formation obligations do I have as an LLC owner in Dubai?

A9: As an LLC owner in Dubai, you have ongoing responsibilities, including renewing licenses annually, maintaining accurate financial records, and adhering to local regulations. Compliance with labour laws and visa regulations for your employees is also essential. Engaging with legal and financial experts can help you navigate these obligations effectively.

Q10: How can QuickBiz assist me in the LLC company formation process?

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