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Mainland LLC Company Formation in Dubai


A Detailed Guide To Setup LLC Company Formation in Dubai, UAE Mainland

Overview of Mainland LLC Company Formation in Dubai

The LLC Company Formation in Dubai is one of the more predominant types of business structure in the UAE.

Following are the important points to be understood for LLC company formation in Dubai.

An LLC company formation in Dubai or any other emirates of the United Arab Emirates requires a minimum of two and a maximum of 50 shareholders.

  • From 1st June 2021 ,  Foreign investor can own 100 percent shares in limited liability company for certain designated commercial activities.
  • All liabilities of a company are limited to the company only under this legal structure. Shareholders are personally not liable for the company’s liabilities.
  • The required minimum capital for company formation in Dubai is AED 300,000. However, the required minimum capital in the other Emirates Mainland Company is AED 150,000. This share capital can be increased while planning a company formation in Dubai.
  • The distribution of profit and loss can be among shareholders. The responsibility of managing an LLC can be vested in any shareholder or even a third party.
company formation in dubai | llc company formation in dubai
  • LLC is not allowed to offer insurance, business banking, or money investment services on behalf of others. In addition, these shares cannot be represented as negotiable instruments.
  • Any legal commercial activity can be set up as LLC in Dubai Mainland.
  • Branches of an LLC can be opened within the same emirate or in other Emirates jurisdictions.
  • Day-to-day operations including banking operations can be managed by the manager appointed in MOA which is notarized in public notary. In most cases, the actual investor becomes the manager of the company. The company’s manager appointed by MOA is fully responsible for any misconduct or fraudulent activities taking place in LLC.
  • A Limited Liability Company can enjoy credit facilities from banks and other money-lending institutions subject to credit approval from the respective lender.
  • There are also special licenses issued by the Department of Economic Development. Approval from relevant authorities may be required for certain activities. These bodies include the DHA, KHDA, RTA, DTCM, and Dubai municipalities among others.
  • It is mandatory to rent an office or shop in order to incorporate an LLC. However, the Dubai DED License has recently approved instant licenses were renting an office was not required. Mainland Companies in Dubai can also be now registered on Desk facilities (Sustainability Centers) for certain activities.
  • Trading LLCs are allowed to conduct company formation in UAE as well as export and import goods freely.
  • All ex-pat shareholders are eligible to get a residence visa valid for 3 years subject to a minimum holding AED 72000 share capital in the company. Expat shareholders can also sponsor his or her family, parents, and made subject to fulfillment of documents.
  • Any number of employees can be recruited in LLC subject to fulfilling requirements from the Labour department.
  • Liquidation of LLC goes through the process of producing audit reports from Government registered Audit firms and newspaper advertisements.

Flyingcolour® assists you with the best llc company formation in Dubai.


What is LLC company in UAE?

LLC stands for Limited Liability Company in the UAE. It is a common business structure that offers limited liability protection to its owners while allowing them to actively participate in the management and operations of the company. An LLC company in the UAE is a separate legal entity distinct from its owners.

How many partners are allowed in a LLC in Dubai?

In Dubai, an LLC company can have a minimum of two and a maximum of 50 partners. The partners can be individuals or entities, and they contribute to the capital and share in the profits and losses of the company according to their ownership percentage.

What is the meaning of LLC in UAE Dubai business setup?

LLC in UAE Dubai business setup refers to the process of establishing a Limited Liability Company in Dubai. It involves registering the company with the relevant authorities, fulfilling legal requirements, drafting a memorandum of association, and obtaining the necessary licenses and permits to commence operations.

What is the benefit of LLC in Dubai?

The benefit of establishing an LLC in Dubai includes limited liability protection, where the owners’ personal assets are generally protected from the company’s debts and liabilities. 

It also allows for active participation and management control by the owners. Additionally, an LLC can engage in various business activities across different industries and can operate in both local and international markets.

What does LLC stand for in UAE?

LLC stands for Limited Liability Company in the UAE. It is the same acronym used globally to represent this business structure, emphasizing the limited liability protection it provides to its owners.

What LLC company means?

LLC company refers to a business entity that is structured as a Limited Liability Company. It implies that the owners have limited liability for the company’s debts and obligations, and their personal assets are generally protected. The company has a separate legal existence and can conduct business activities in its own capacity.

What is the difference between LLC and Ltd in UAE?

The main difference between an LLC and Ltd (Limited) in the UAE lies in their legal structures. An LLC provides limited liability protection to its owners and allows for active participation in management. On the other hand, Ltd typically refers to a private limited company where ownership is represented by shares, and the liability of the shareholders is limited to the extent of their shareholding.

What is the difference between LLC and Freezone in UAE?

The key difference between an LLC and a Free Zone company in the UAE lies in their jurisdiction and ownership regulations. An LLC operates in the mainland of the UAE and requires a local Emirati partner or sponsor. It allows for conducting business within the UAE and internationally. A Free Zone company, on the other hand, is established within a specific free zone area, providing benefits like full foreign ownership, tax exemptions, and simplified regulations. Free Zone companies are generally restricted to operating within the designated free zone and have specific regulations for conducting business.

What are the benefits of company formation in Dubai?

Company formation in Dubai offers several benefits, including access to a thriving market, strategic location for international trade, strong infrastructure, favorable business environment, tax advantages (depending on the jurisdiction), world-class facilities, availability of skilled workforce, government support and initiatives, and access to a global network of businesses and investors. These benefits make Dubai an attractive destination for company formation and business expansion.

What is LLC company formation in Dubai?

LLC company formation in Dubai refers to the process of establishing a Limited Liability Company in the city. It involves selecting a suitable company name, drafting the necessary legal documents (such as the memorandum of association and articles of association), fulfilling legal requirements and documentation, obtaining the necessary licenses and permits, securing office space, and completing the registration process with the relevant authorities. This allows the LLC to legally operate and conduct business activities in Dubai.

Flyingcolour® assists in all types of company registrations in United Arab Emirates. We assist in Mainland, Free zones or Offshore company registrations in all Emirates of UAE. We also assist in opening bank account with all local leading banks. We closely work with all Government Departments and banks.

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