LLC Company Formation in Dubai

LLC is the most common form of business in UAE. Liabilities of an LLC are limited to company and the owners are not personally liable for it. If you are planning to opt for LLC company formation in Dubai, then you ought to know about its formation rules and the procedures involved in setting it up.


Until recently, 100% ownership was not offered to expatriates and they had to have a local sponsor who held the majority of the shares of not less than 51%. But, in 2020 the UAE government amended the ‘Company Law’ offering them complete ownership of businesses in the Dubai mainland.

An LLC can be formed by a minimum of two people and with a maximum 50 people. The liability of the partners will be limited to their shares in the company’s capital. An LLC can engage in any sort of business activity except insurance, banking and investment. But for some activities they need to attain special approvals and licenses, such as, tourism, health care, shipping, architectural and engineering consultancy, educational services and for companies in Dubai World Communities.

Why an LLC?

LLC company formation in Dubai is very cost-effective and it also brings in the advantages of being in the mainland of Dubai. The company incorporation procedures are very easy and its registration process can be done in less than a day’s time. LLC gives you the opportunity to set up an office at any location of your preference in Dubai or anywhere in UAE.

It also offers the opportunity to sponsor your family and also unlimited visas by which you can bring in employees of your preference. LLC’s have no restrictions on the type of business activities or limits of any kind. They can trade in any business activity listed with the Department of Economic Development (DED) as well.

Trade license

It is mandatory for every business organization to get a trade license in UAE to carry out their operations irrespective of its size or type of business they wish to engage in. Companies can choose the type of license required based on their mode of operations. The licenses are classified into three; commercial, professional and industrial license.

Commercial licenses are issued to those who wish to engage in any sort of trade
Professional license for those who offer any type of professional service
Industrial license for the ones that wish to do industrial and manufacturing activities.

Obtaining a trade license is the first step to company incorporation.

Procedures for LLC Company formation in Dubai:

Registration of the company trade name and activities at the Department of Economic Development (DED), Dubai
Drafting the Memorandum of Association (MOA) and getting it attested by the Notary
Choosing the perfect location
Submitting application to DED with all the required documents
Registration at the Dubai Commercial Register and seeking approval
Registering of company employees with the General Authority of Pension and Social Security and Ministry of Labour

Setting up an LLC company in Dubai might sound easy, but there are many more aspects to it. Carvy Consultants offer all possible services related to the formation of an LLC and business consultancy services as we have been associating with the legal entities for quite a long time. We aim to provide you with the best quality services at affordable rates and have been serving our clients for years now. We have well qualified and experienced professionals to handle your needs with their adroitness.

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Sojen Manjila, Partner

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