How to open an LLC company in Dubai?

Start an LLC company in Dubai

Many entrepreneurs dream of starting a business in Dubai, and opening an LLC company in Dubai is the most popular choice. The growing economy, world-class infrastructure, and investor-friendly environment make Dubai a leading hub for business setup. An LLC company offers flexibility, credibility, and the freedom to operate in various sectors. It makes us the top option for the investors who want to establish a strong presence in the UAE market. 

Opening an LLC company in Dubai is also attractive due to the tax benefits, global market access, and strategic location of the company. The process is very simple, and you have the right to guidance and business setup experts by your side. The entrepreneurs can enjoy long-term growth opportunities, low risk, and the chance to expand the business in the local and international markets. 

Benefits of Opening an LLC Company in Dubai

It is important to know why an LLC is a preferred choice before we understand the process of opening the company. Here are some of the benefits:

1. 100% Ownership for Foreign Investors: The new UAE laws provide full ownership in most of the business sectors to foreign investors. 
2. Wide Range of Business Activities: You can start your business in trade, import, export, and many types of services under an LLC. 
3. Credibility in the Market: An LLC company in Dubai is recognized as a trusted and reliable business structure. 
4. Access to Local and International Markets: You can easily trade in the UAE, and you can expand your business into international markets. 
5. Limited Liability: The owners are only responsible for their investment and not for their personal assets. 
6. Visa Eligibility: an LLC allows the investors and employees to get the UAE residence visas. 

Steps to Open an LLC Company in Dubai 

Opening an LLC company looks like a tiring process, but if we break down the process into steps, the process becomes easy to understand. 

Step 1. Decide on Your Business Activity

The first step is to decide what kind of business you want to start. Dubai allows thousands of activities under the trade, services, manufacturing, and consultancy sectors. You can choose the right activity to decide the type of license you need: commercial, industrial, or professional. 

You should always check if your activity needs special approval from the authorities. If you are starting your business in the medical, education, or financial sectors, then you need some extra permissions. 

Step 2. Choose a Business Name 

Your company name is very important to start a business. When your name is decided, you need approvals from the Department of Economy and Tourism (DET) in Dubai. Dubai has some rules when it comes to deciding the name of a business:

• It should not be offensive and part of any religion. 
• It should not be copied from any famous brand. 
• The name you decide should reflect the activity of your business. 
• You are allowed to use your own name, but the name should be spelled fully (no initials are allowed). 

Step 3. Select a Business Location

The LLC company in Dubai should have a physical office space. The official address of your business is mandatory to complete your trade license. You can either:

• Rent an office in a commercial building or
• You can choose a flexi-desk or virtual office (Allowed in many Free Zones). 

Step 4. Prepare the Memorandum of Association (MOA)

The MOA is a legal document that defines the core activities of your business. This document should be notarized by the public notary in Dubai. It defines the:

• Business activity of your company 
• The shareholding pattern in the company
• The profit and loss distribution 
• The rights and responsibilities of each shareholder 

Step 5. Get Initial Approvals 

After completing the paperwork, you need initial approval from the Department of Economy and Tourism. The approval from DET means that the government has no objection if you are starting your business in Dubai. 

Step 6. Submit Documents and Pay Fees

When you get initial approvals for your business, you have to submit the proper information along with the business license application. The fees for the business license depend on your business activity, office size, and number of visas you need. 

The list of documents that are usually required is:

• Passport copies of the shareholders
• Passport-size photos
• The copy of the visa or entry stamp
• Trade name approval certificate
• Signed and Notarized MOA
• Office tenancy contract (Ejari)

Step 7. Collect Your Trade License 

After the verification of the documents and payment, you will receive your Dubai LLC trade license. This license is the official permission to legally start your business in Dubai.

Step 8. Apply for Visas

You can apply for UAE residence visas for yourself, your family, and your employees if you have an LLC license. The number of visas you need and you can apply on the size of your office space. 

Step 9. Open a Corporate Bank Account

The last step in the process of starting an LLC company is opening a corporate bank account in Dubai. You can approach any UAE bank to open a corporate account for your company. To open a bank account, you need a trade license, an MOA, and other documents. 

Cost of Opening an LLC Company in Dubai 

The cost to open an LLC company in Dubai varies depending on the following:

• Type of business activity 
• Size of office space
• Number of visas you need
• Government fees and approvals 

On average, the cost of starting a business is from AED 20,000*. The cost can increase according to the requirements of the business. It is always better to get a proper cost estimate from a business setup consultant before starting a business. 

The Eligibility to Open an LLC Company in Dubai 

Everyone may not know about the requirements before forming an LLC. Here are the key eligibility conditions to start an LLC:

• You need a minimum of 2 shareholders and a maximum of 50. 
• The shareholder can be an individual or a corporate entity.
• The shareholder should be over 18 years of age. 
• A business activity should be approved by the DET. 
• An approved business name that follows the name guidelines of Dubai. 

Types of Licenses for LLC Companies in Dubai 

The license you need depends on your business activity. You have to apply for the right license. The main types of license are:

• Commercial License: it is for companies engaged in trading, import, and export. 
• Industrial License: For businesses on manufacturing or industrial activities. 
• Professional License: For the services provider, consultancy, or skilled professionals. 

Sectors Where LLC Companies Can Operate 

The LLCs are flexible and suitable for most industries. Some of the popular sectors are:

• Real Estate and Property Management 
• Trading and Import/Export
• Construction and Contracting
• Tourism and Hospitality 
• IT and Technology Services 
• Retail and E-Commerce
• Manufacturing and Industrial Activities 
• Logistics and Transportation

Why Choose Flyingcolour Business Setup to Start an LLC Company in Dubai?

The steps and process to start an LLC look simple, but you need proper experience to handle the process. Flyingcolour Business Setup has over 20 years of experience in setting up businesses. We can assist you with picking the right business activity, license, registering your trade name, MOA, and much more. We can also help you with locating the appropriate office space and getting the relevant approvals from the Government departments.  Additionally, we can help to file the visa applications and support you in opening a corporate bank account. We can make the entire LLC company formation in Dubai smooth and hassle-free. 

We can provide you a complete support for LLC company formation in Dubai, including;

• Guidance to choose the right business activity and license 
• Registration of a trade name 
• Find proper office spaces
• Assistance with the visa process 
• Help to open a corporate bank account

Conclusion

Creating an LLC business in Dubai is a great option for business owners who value flexibility, growth potential, and security. It is essential to follow all steps, it be selecting the appropriate license, completing approvals, and organizing visas. Depending on who you ask, it can seem complex, but if you have good guidance, it can actually be quite easy.

Flyingcolour® can help you build a foundation for long-term success in Dubai. Whether you are a first-time investor or have been doing business for years, our team can walk you through every step. 

Frequently Asked Questions (FAQs) About How to open an LLC company in Dubai

1. What is the time taken to open an LLC company in Dubai?

You can complete the process of opening an LLC in 1 to 2 weeks. Additionally, it also depends on the document preparation and approvals.

2. Can a foreign investor own 100% of an LLC company in Dubai?

Yes, under the new UAE laws, foreign investors can fully own LLC companies in most sectors. 

3. Do I need a local sponsor to open an LLC in Dubai?

You do not need a local sponsor for most business activities anymore. However, you might need an Emirati in some strategic sectors. 

4. What is the minimum number of shareholders needed for an LLC company in Dubai?

You need at least 2 shareholders to start an LLC in Dubai. You can have up to 50 shareholders in an LLC. 

5. Can an LLC apply for visas in Dubai?

Yes, an LLC company can apply for investor visas, employee visas, and family visas. It also depends on the office space size. 

Therefore, to learn more about how to open an LLC Company, Book a free consultation with one of the Flyingcolour Business Setup team advisors.

The article was published on 13/09/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!