The most common form of business entity in UAE, mainland is the Limited Liability Company (LLC). The Department of Economic Development (DED) is the governmental authority responsible for granting licenses to LLCs and responsible for classifying and regulating the permissible economic activities.
An LLC in the Dubai or UAE mainland enjoys the advantage of being unrestricted in its choice of trading locations within the UAE (unlike Free Zone companies) and across the Gulf Cooperation Council (GCC) region. Additionally, there are no restrictions on real estate ownership and no limits on the number of visas that can be obtained. There are no mandatory minimum share capital requirements, and mainland companies are exempt from the standard 5% customs duty on imported goods.
All mainland (onshore) UAE legal entities must obtain a license from the Department of Economic Development (DED) and operate in accordance with the UAE Commercial Companies Law (CCL).
The primary benefit for foreign investors who decide to establish a business in mainland UAE is that, unlike the Free Zones, there are no geographical restrictions on business activities or the location of offices/premises. A mainland company, therefore, enjoys the freedom to engage in trade anywhere within the UAE or the broader Gulf Cooperation Council (GCC) region, including all Free Zones, and also has a much broader range of real estate options to choose from.
In the UAE mainland, the predominant company structure is the Limited Liability Company (LLC). The Department of Economic Development (DED) holds the authority to issue licenses for LLCs and is responsible for categorizing and overseeing the permissible economic activities.
An LLC operating in the UAE mainland enjoys the flexibility of conducting business anywhere in the UAE (unlike Free Zone companies) or even within the GCC. Additionally, there are no constraints on real estate ownership, visa quotas, or minimum share capital requirements. Mainland companies are exempt from the standard 5% customs duty on imported goods.
There are several significant benefits of LLC Company formation in Dubai, UAE:
Establishing a Limited Liability Company (LLC) in Dubai involves several steps:
Embark on the journey of opening a Limited Liability Company (LLC) in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.
Secure a business name for your enterprise, making certain it adheres to all government regulations regarding naming conventions.
Select your business location and secure the initial approval certificate from the DED. Keep in mind that your trade name must be approved to receive this certificate.
Ensure that you finish all necessary paperwork, such as the Memorandum of Association (MoA) and Limited Service Agreement (LSA) contracts. Collaborate with a trustworthy local sponsor who can assist you in meeting legal requirements.
Secure a trading license for your business by successfully verifying all the documents you have submitted to the relevant authority.
Submit an application to the labor registry for labor cards and manage your visa processes yourself and your business associates. Once this is completed, you will be prepared to operate a legitimate LLC company in Dubai.
Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
The key documents required for LLC formation in Dubai, UAE include:
Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.
Starting at approximately AED 18,500, the cost of obtaining an LLC license in Dubai may vary. An additional AED 2,000 is incurred for foreign trade names or non-Arabic names. When it comes to renewing an LLC license in Dubai, the cost typically falls in the range of AED 8,000 to AED 15,000.
For most economic activities, the setup cost of a limited liability company in Dubai remains relatively consistent. Variations in cost may arise from factors such as the number of visa applications, the selected medical insurance, additional approvals from relevant government bodies, and the inclusion of foreign trade names.
For a precise quotation regarding LLC company formation, we encourage you to connect with Smart Zones® Dubai knowledgeable experts.
In accordance with the new UAE Commercial Companies Law, it is now possible to establish a Limited Liability Company (LLC) with just one shareholder. However, it is a common practice among foreign investors to have a minimum of two shareholders to fulfill the UAE's foreign ownership requirements.
While there is no strict requirement for a Registered Agent, it's crucial for foreign investors to seek guidance and engage a company with substantial experience and expertise in establishing UAE mainland LLCs due to the constraints related to foreign ownership.
Indeed, an LLC has the authorization to engage in trade across both the UAE and GCC regions. Furthermore, an LLC is eligible to acquire a Tax Residence Certificate from the UAE Ministry of Economy.
An LLC has the option to operate under various types of licenses, including: