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LLC Company Formation in Dubai Mainland
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LLC Company Formation in Dubai Mainland
Dubai Mainland is one of the most attractive locations for establishing a Limited Liability Company (LLC), offering a thriving business environment, unparalleled infrastructure, and a strategic geographic location. At PRO Deskk, we provide expert assistance for LLC company formation in Dubai Mainland, ensuring your business setup process is seamless, compliant with local regulations, and customized to your specific business needs.
Our comprehensive LLC formation services cater to both local entrepreneurs and foreign investors, making it easy for you to establish your presence in one of the world’s leading business hubs.
What is an LLC in Dubai Mainland?
A Limited Liability Company (LLC) in Dubai Mainland is the most common and flexible business structure, providing a perfect blend of legal protection and operational freedom. LLCs in Dubai Mainland are permitted to conduct a wide range of business activities, including commercial, industrial, and professional services, making them an ideal choice for many industries.
An LLC in Dubai Mainland requires a minimum of two and a maximum of 50 shareholders, where each shareholder’s liability is limited to their shareholding in the company. Foreign investors can hold up to 49% of the shares, while the remaining 51% must be owned by a UAE national or a UAE-based corporate entity. However, operational control and profit-sharing can be agreed upon differently between partners, allowing foreign investors to retain full management control if desired.
Establishing an LLC in Dubai Mainland gives you access to the local market, offers a high level of legal protection, and allows for easy scalability as your business grows.
Key Benefits of Forming an LLC Firm in Dubai Mainland
Choosing to set up an LLC in Dubai Mainland offers numerous advantages that position your business for long-term success:
100% Control Over Operations:
Although local sponsorship is required, foreign investors can retain full control over day-to-day business operations, decision-making, and profit distribution through flexible management structures.
Access to Dubai’s Local Market:
Unlike free zones, businesses established as an LLC in Dubai Mainland have the freedom to trade directly within the UAE market, giving you the opportunity to expand without geographic restrictions.
Unlimited Business Activities:
Dubai Mainland LLCs are not limited to specific sectors. You can conduct multiple business activities under one trade license, making LLCs an attractive option for businesses involved in trade, industrial, and professional services.
Eligibility for Government Contracts:
Mainland companies in Dubai are eligible to bid for lucrative government contracts, allowing you to explore new business avenues with government entities.
Unrestricted Visa Quotas:
An LLC in Dubai Mainland allows for unlimited visa applications, subject to the size of your office premises. This makes it easier to hire staff and manage large teams.
No Minimum Capital Requirement:
Unlike certain jurisdictions, Dubai Mainland does not impose a specific minimum capital requirement for LLC formation, making it accessible to startups and SMEs.
Flexible Office Space Options:
Dubai Mainland allows businesses to lease office space anywhere within the emirate, providing flexibility in choosing a location that suits your budget and operational needs.
Easy Business Expansion:
An LLC can easily open branch offices across Dubai and the UAE, facilitating hassle-free business expansion.
Tax Benefits:
Dubai Mainland LLCs enjoy the benefits of zero corporate taxes and no restrictions on repatriation of profits, making it a tax-efficient structure for businesses.
How to Set Up an LLC in Dubai Mainland – Step-by-Step Process
Setting up an LLC in Dubai Mainland involves the following steps:
Business Activity Selection
Before you start the company formation process, the first and most crucial step is to identify the business activity that your LLC will undertake. Dubai Mainland allows for a broad range of business activities, including commercial, industrial, and professional services. You can choose to conduct one primary activity or multiple activities under a single trade license.
Reserve and Register Your Trade Name
Once you’ve decided on your business activity, the next step is to reserve a unique trade name for your LLC. This name should reflect your business and adhere to the following guidelines set by the DED:
If the trade name includes the name of a person, it must be the full name of a partner or shareholder, without abbreviations. Once the name is approved, you will receive a Trade Name Reservation Certificate.
- Uniqueness: The name must not be similar to any existing company in the UAE.
- No Offensive Language: Avoid words that are inappropriate or sensitive.
- Reflective of Business Activity: The name should relate to the nature of your business.
- Legal Compliance: Avoid references to political, religious, or government entities.
If the trade name includes the name of a person, it must be the full name of a partner or shareholder, without abbreviations. Once the name is approved, you will receive a Trade Name Reservation Certificate.
Initial Approval from DED
After the trade name is registered, you will need to secure initial approval from the DED to proceed with the company formation process. This approval essentially indicates that the government has no objection to your proposed business activity and structure.
To obtain this approval, you will need to submit:
- A completed application form from the DED
- Copies of the shareholders’ passports
- A brief outline of your business plan
Once initial approval is granted, you can proceed with drafting the legal documents required for the company’s registration.
Draft and Notarize the Memorandum of Association (MOA)
The Memorandum of Association (MOA) is a critical document that outlines the ownership and operational structure of the company. In Dubai Mainland, an LLC must have 51% local ownership, which means that a UAE national (local sponsor) must own at least 51% of the shares, while the foreign investor holds the remaining 49%.
However, flexibility in profit distribution and management control can be negotiated between the local sponsor and the foreign shareholder. The MOA must include:
- Names and details of shareholders and their ownership percentages
- Business activities to be carried out by the company
- Capital contribution from each shareholder
- Profit-sharing arrangements
- Company management structure
Once drafted, the MOA must be notarized by a public notary in Dubai.
Secure a Local Sponsor (UAE National)
Dubai Mainland regulations require foreign investors to partner with a local sponsor. The local sponsor can either be an individual UAE national or a UAE-based corporate entity. While the sponsor holds a majority of the company’s shares, foreign investors can maintain full operational control and profit-sharing rights by entering into a side agreement.
Choosing a reliable and trustworthy local sponsor is essential, as they will play a key role in the company formation process. Many local sponsors act as silent partners, with no involvement in the day-to-day operations, ensuring that foreign investors retain full control over their business.
Lease Office Space and Obtain Ejari Registration
Every LLC in Dubai Mainland must have a physical office address. The DED requires that businesses lease an office or a workspace in a location that fits the nature and scale of the company. The size of the office will also determine how many visas you can apply for your staff and partners.
Once you have leased an office, you must register the tenancy contract through the Ejari system. Ejari is the official online platform managed by the Dubai Land Department that standardizes rental contracts and ensures legal protection for both parties. The Ejari registration certificate is a mandatory document that you will need to submit when applying for your trade license.
Submit License Application and Pay Fees
After securing initial approval, notarizing the MOA, and registering the tenancy contract, you are ready to apply for the trade license from the DED. The following documents are required for submission:
- Initial approval certificate from DED
- Trade name reservation certificate
- Notarized MOA
- Ejari tenancy contract
- Shareholders’ passport copies
Once the application is submitted, you will need to pay the necessary license fees, which vary depending on your business activity and the size of your company.
Obtain Your Trade License
After all the required documents have been submitted and the fees are paid, the DED will review your application. Upon successful review and approval, you will receive your Dubai Mainland trade license. This license officially grants you the legal right to start conducting business in Dubai Mainland.
The trade license is valid for one year and must be renewed annually.
Apply for Visas
After receiving your trade license, you can apply for residence visas for yourself, your business partners, and your employees. The number of visas you can apply for is generally linked to the size of your office space and the nature of your business. The visa application process includes:
Entry permit application
Medical fitness test
Emirates ID application
Residency stamping on the passport
Additionally, you can sponsor visas for your family members (spouse, children, or parents) based on your residency status.
Open a Corporate Bank Account
Once your LLC is legally established and your trade license is issued, you can open a corporate bank account in Dubai. Most banks in Dubai require your trade license, MOA, Ejari certificate, and passport copies of the shareholders to open an account.
Dubai has numerous local and international banks that offer a range of corporate banking services. Depending on your business needs, we can assist you in selecting a bank that aligns with your company’s requirements.
Ongoing Compliance:
Once your LLC is established, it is important to adhere to the ongoing regulatory and compliance requirements of the DED, such as maintaining updated records, renewing visas, and paying taxes (if applicable).
Get Expert Assistance for LLC Company Formation in Dubai Mainland
At PRO Deskk, we specialize in helping businesses navigate the complexities of LLC company formation in Dubai Mainland. With our end-to-end support, you can establish your business quickly, efficiently, and in full compliance with local laws. Here’s How PRO Deskk Help You With LLC Formation In Dubai Mainland?
Business Activity Selection
Our experts help you choose the right business activity based on your industry, ensuring compliance with Dubai’s regulatory requirements.
Trade Name Reservation
We assist in selecting and registering a trade name that complies with Dubai’s Department of Economic Development (DED) regulations.
Initial Approval from DED
We manage the process of securing initial approval from the DED, a crucial first step in company formation.
Drafting and Notarizing the MOA
Our legal team prepares and notarizes your Memorandum of Association (MOA), ensuring it aligns with UAE business laws and protects your interests.
Local Sponsor Arrangements
We connect you with reliable and trustworthy local sponsors to fulfill the 51% local ownership requirement. Our network ensures you retain full control over your business operations.
Office Space Leasing & Ejari Registration
We help you find the right office space and complete the Ejari registration process, which is mandatory for LLC formation in Dubai Mainland.
Trade License Application
We handle the entire process of applying for your trade license, including submitting all necessary documents to the DED.
Visa and Immigration Assistance
From investor visas to employee visas, our team processes all immigration requirements efficiently.
Submit Documents to the DED
After completing the necessary approvals, all required documents must be submitted to the DED. This includes the trade name approval, MOA, local sponsor agreement, and tenancy contract.
Receive Your Business License
Once the DED verifies and approves your application, your business license will be issued. This license officially authorizes your company to operate legally in Abu Dhabi Mainland.
Documents Required for LLC Company Formation in Dubai Mainland
For Individual, the following additional documents are required
- Trade Names:
- Provide 3 preferred trade names (in order of preference)
- Manager's Documents
- Passport copy, visa copy, and Emirates ID of the manager(s)
- Mobile number and email address
- Shareholder's Documents
- Passport copy, visa copy, and Emirates ID of the manager(s)
- Mobile number and email address
- Ejari
- Office lease agreement (if not opting for a virtual office)
- Photograph
- Passport holding photograph
- Additional Documents
- Any other documents as requested by the authorities.
For Corporate Shareholders, the following additional documents are required
- Board Resolution
- Notarized by the issuing authority, and attested by the UAE embassy and Ministry of Foreign Affairs (MOFA) in the UAE.
- Corporate Documents
- Trade license, certificate of incorporation
- Certificate of incumbency
- MOA/AOA for the parent company, all attested by the UAE embassy and MOFA in the UAE.
Types of LLCs We Can Help You Set Up in Dubai Mainland
We cater to various business sectors, helping you form the right LLC structure for your industry:
- Commercial LLC: Ideal for businesses engaged in general trading, import/export, and contracting activities.
- Professional LLC: For businesses providing professional services, such as consultancy, IT services, or legal advice.
- Industrial LLC: Designed for businesses involved in manufacturing, assembly, and large-scale production.
- Foreign Branch LLC: Foreign companies can establish a branch LLC in Dubai Mainland, allowing full operational freedom while maintaining a strong presence in the UAE.
What is the Cost of Setting Up an LLC in Dubai Mainland?
On average, setting up an LLC in Dubai Mainland can cost between AED 15,000 to AED 30,000 or more for a small business, excluding office rent and sponsor fees., However it varies depending on several factors, such as:
- Trade Name Registration Fees
- MOA Notarization Costs
- Office Space Rental and Ejari Registration
- License Application Fees
- Initial Approval from DED
- Local Sponsorship Fees
- Visa Processing and Immigration Fees
Business Activities That Don’t Need Approval
Foodstuff Trading License in Dubai
Electronics Trading License in Dubai
Restaurant License in Dubai
IT Services License in Dubai
Project Management License In Dubai
Cosmetic’s Trading License in Dubai
Commercial Brokerage License in Dubai
Digital Marketing License in Dubai
Garments Trading License in Dubai
Activities That Need Special Approvals to Form an Dubai Mainland LLC Company
General Trading license in Dubai
Real Estate License in Dubai
Gold and Precious metal trading license in Dubai
Travel agent license in Dubai
Rent a car license in Dubai
Limousine service License in Dubai
Advertisement License in Dubai
Billboard License in Dubai
Air Freight service license in Dubai
Chemicals Trading License in Dubai
Medical clinic license in Dubai
Pharmacy License in Dubai
Educational Services License in Dubai
Cloud Kitchen Service License in Dubai
Vacation home rental License in Dubai
Frequently Asked Questions
The process of setting up an LLC in Dubai Mainland typically takes 2 to 4 weeks, depending on the complexity of your business and the speed at which documentation is processed. Delays can occur if additional approvals are required or if the business activity falls under regulated sectors.
No, a foreigner cannot own 100% of an LLC in Dubai Mainland. By law, a UAE national (or UAE-owned company) must hold at least 51% of the company shares. However, as a foreign investor, you retain full control over the company’s management and operations.
Yes, LLCs in Dubai Mainland can conduct both local and international business.
The average Dubai Mainland LLC company annual maintenance cost is range from (Cost Range), Annual costs include license renewal fees, office rental, visa renewals, and local sponsorship fees. We offer tailored solutions to manage these expenses.
Yes, an LLC in Dubai Mainland requires a UAE national to hold at least 51% of the company’s shares. This is a legal requirement for all mainland LLCs. However, the UAE national partner generally acts as a silent partner and does not interfere in the company’s day-to-day operations, which can be fully controlled by the foreign investor.
The number of visas an LLC in Dubai Mainland can sponsor depends on the size of the office and the type of business activity. Typically, companies can sponsor 1 to 5 visas for a small office space, with the possibility of increasing this number as the company grows and upgrades its office space.
Yes, an LLC in Dubai Mainland can hire foreign employees and sponsor their visas. The company must comply with the UAE’s labor laws, including providing employment contracts, adhering to minimum wage requirements, and offering benefits such as health insurance.
To maintain an active LLC in Dubai Mainland, the company must renew its trade license with the Dubai Economic Department (DED) annually. This process involves:
- Renewing the trade license.
- Updating the company’s financial records (if required).
- Paying the renewal fees.
- Ensuring compliance with labor laws, visa quotas, and other regulatory requirements.
If the LLC’s license is not renewed on time, the company risks facing penalties, fines, or even the cancellation of the business license. This may also result in the inability to conduct business, employ staff, or sponsor visas.
Yes, it is possible to convert an LLC to another business structure, such as a branch of a foreign company or a subsidiary. However, this process requires legal and regulatory approvals and may involve changes in ownership, management, and capital structure.
No, there are no restrictions on repatriating profits from an LLC in Dubai Mainland. Foreign investors can transfer profits and capital abroad without any restrictions, provided they comply with the applicable tax laws in their home country.
Yes, an LLC registered in Dubai Mainland can operate across the entire UAE, including other emirates. It is not limited to a specific geographical area, unlike companies in free zones which have geographical restrictions.
PRO Deskk is a one stop business solution.