LLC Company Formation in Dubai, UAE

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The LLC company setup in Dubai is an excellent choice for investors who look to expand their businesses and are interested in great investment opportunities in Dubai. Investors prefer Dubai for their company formation because of its positioning and rate of market growth over the years. A Limited Liability Company (LLC) in Dubai is a legal entity which is registered under the Economic Department (DED). The LLC formation in Dubai is no easy task to go about. Without the proper guidance and advice, it takes time and lots of paperwork to establish a Limited Liability Company. Paso experts provide holistic assistance which ensures your license is ready within days.

Dubai LLC Company Formation
New LLC Company

There are various types of LLC trade license in Dubai. The general trading license is the most common of them all. Investors prefer this type of LLC license because it encompasses all trading activities except those that require special approval by government authorities. The general trading license offers a great investment opportunity for investors including the import and export business in Dubai. The downside to the general trading license is the cost of acquisition compared to other activities. With the aid of Paso’s company registration experts, your general trading license will be ready in no time.

What an LLC Means in Dubai

An LLC or limited liability company is a corporate structure whereby the members of the company are not personally liable for the company’s debts or liabilities, it is the most common legal form in Dubai and UAE, An LLC must have between 2-50 shareholders, and it can have 1-11 managers for the business, At least 51% of LLCs must be owned by UAE Nationals, and can be owed by GCC nationals by up to 100%, it can be owned by partners of any nationality in accordance with DED regulations, it must have a name derived from its activity or from the name of one partner, it can have more than one branch, Each may undertake one or all the activities of the main license.

Where Can You Start a Limited Liability Company (LLC)

A limited liability company can be issued anywhere in UAE, this includes the seven emirates, each emirate has a separate economic department, or issuing authority which is authorized to issue the LLC license, Free zones can issue LLC licenses also. The Economic Department in Dubai has over 2000 activities, the majority of these activities can be used in an LLC, although the general trading alone includes all direct trading activities that require no special approval, the LLC company can have any commercial, industrial and tourism activity, besides most professional activities.

Steps to Setting Up an LLC Company in Dubai:

LLC Company Formation in Dubai Free Zones

Many Free zones in UAE issue LLC licenses. Forming an LLC company in a Free zone is easier than a mainland company formation in some cases, foreigners can have 100% ownership, besides some free zones are exempted from VAT, The Free Zone LLCs are great for import and export business, there are no custom fees for importing and exporting products, but the business activities are limited to the Free zone areas, if you decided to expand the company operations inside Dubai, you have to use a commercial partner or open a branch inside Dubai.

Advantages of Setting Up an LLC In Dubai:

Disadvantages of LLC Registration in Dubai:

Dubai Instant License

The Department of Economic Development in Dubai launched in 2017 a new type of license, the new license called instant license, this license can be issued by only one step, no need for a memorandum of association or a tenancy contract for the first year, anyhow the memorandum of association and the tenancy contract should be done and be ready at the renewal time, this license can have any activity without special approval, and can be of any legal form.

Advantages of Dubai Instant License:

Disadvantages of Issuing Dubai Instant License:

Protect your LLC Company in Dubai

Starting an LLC in Dubai can have few risks, your LLC in UAE free zones will be owned by you 100%, but in case you wish to start your LLC company in Mainland you should consider a few things, according to the law 51% of DED companies’ shares should be owned by a local sponsor, this can risk your investment in the long run, especially if you disagree with the local sponsor, or if he decides to keep the shares, so how can you protect your business in Dubai?

Paso has a long experience of forming LLC companies in Dubai, our priority is to protect our client’s business and investments, we will guide you step by step in the process to protect your company, the local partner role will be limited to signing documents and assisting to get government approvals.

How to Convert Your Company to LLC

If you are an owner of a DED company in Dubai, and if your current legal form is a sole establishment or a civil company, you can convert your company legal form into a limited liability company (LLC), you will have all the LLC benefits without changing your current business activity or trade name, there are few conditions to successfully change your company into an LLC:

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The Required Documents to Form an LLC Company in Dubai

For individual Shareholders:

For Corporate Shareholders:

Note: Some nationalities may require a security approval at the time of submission, for these nationalities the shareholder is required to be present, additionally the shareholder should bring the original passport and 6 months bank statement from the resident country.

According to the Department of Economic Development, the LLC ownership rules and requirements are:

First PartySecond PartyOwnership RuleRequirements
U.A.E NationalU.A.E NationalAny ownership percentage
U.A.E NationalGCC NationalAny ownership percentage
U.A.E NationalForeign PartnerAt least 51% must be owned by the UAE national
U.A.E NationalUAE national companyAny ownership percentageCorporate in UAE
U.A.E NationalUAE national companyAny ownership percentageCorporate in GCC
U.A.E NationalUAE national companyAt least 51% must be owned by the UAE nationalCorporate in a foreign country
U.A.E NationalGCC national owned companyAny percentageCorporate in UAE
U.A.E NationalGCC national owned companyAny percentageCorporate in GCC
U.A.E NationalGCC national owned companyAny percentageCorporate in a foreign country
U.A.E NationalForeign CompanyAt least 51% must be owned by the UAE nationalCorporate in UAE or GCC
U.A.E NationalCompany owned by a foreign partner and a UAE national who owns less than 68%At least 51% must be owned by the UAE nationalCorporate in UAE or GCC
U.A.E NationalCompany owned by a foreign partner and a UAE national who owns less than 68%Any ownership percentageCorporate in UAE

Our company formation professionals at Paso Corporate Services are well-specialized in the setting up of LLC Companies. We fast track your LLC company formation in Dubai and get your company license in a few days only, contact us to start your company today.