A limited liability company offers complete personal protection to each business partner from liabilities. Therefore, you should invest in an LLC without worrying about the LLC company cost in Dubai because it’s a legal structure with a low barrier to entry.
The good news for expatriate investors is that you can now enjoy 100% ownership of your LLC established in the mainland region. The business experts at Shuraa guide you throughout the mainland company formation process to ensure you’re always on the right track to open your dream venture in Dubai.
What is an LLC?
A limited liability company is an independent legal entity having multiple partners. Note that you can have up to 5 shareholders in your company and need a minimum of 2 partners to establish your LLC. The best part is that the LLC company cost in Dubai doesn’t involve any minimum capital investment.
Moreover, you have the permission to carry out various business activities under your LLC apart from banking, insurance, and investment. LLC is the most popular legal structure for mainland company formation, and the numbers will continue to rise as expatriates can now enjoy 100% ownership in this region.
What is the Cost of Setting up an LLC in the UAE?
The cost of your limited liability company depends on your business activities, license type, location, and a lot more. However, you can secure an LLC trading license for as low as AED 20,000. Therefore, anything between AED 20,000 and AED 30,000 is a safe estimate.
It’s critical to note that the LLC company cost in Dubai rises if you require special privileges such as a foreign trading name, consent from a governing body, etc. You can get in touch with the company formation experts at Shuraa, and we’ll ensure that you don’t overpay at any time while setting up your LLC in the UAE.
Various Payments You Need to Make to Set Up an LLC
Company incorporation in Dubai is hassle-free when you follow the right steps and make the required payments before the deadlines. Here are a few mandatory costs involved in opening an LLC:
1. Fee for Company Registration
You need to register your company with the DED (Department of Economic Development) and pay the corresponding fee. The amount varies based on the number of partners, business activities, investment plan, and visa applications.
2. Business License Charges
You’re free to choose the business license of your choice in the UAE for your limited liability company. These include:
- Commercial License
- Professional License
- Industrial License
- Tourism License
- Agriculture License
You’ll need to make the initial payment for your trading license and continue to annually renew it. Ensure that your LLC license is valid at all times because strict legal action is taken against non-compliant businesses.
3. Office Space Fee
You can choose smart desks or go for a virtual office space to secure an official address for your LLC. You get personalized offices on rent and this reduces the LLC company cost in Dubai to a sizable extent. Furthermore, you don’t need to worry about selling the office property when you have rented the office space.
4. Initial and Trade Name Approval Fee
The fee for the initial approval certificate and trade name reservation is a one-time government fee. The initial approval costs around AED 120 to AED 150 and gives you a buffer period of six months to complete the designated procedure. The fee for trade name approval is around AED 620, and an additional payment needs to be made if you wish to use a foreign trading name.
5. Local Service Agent’s Annual Compensation
A local service agent (LSA) helps you with the paperwork and other legalities without having any formal participation in your business activities. Therefore, you can enjoy 100% ownership of your business by collaborating with a reliable company setup agent like Shuraa at a nominal annual fee.
Other costs include the Tasheel fee, notarization of MoA, and administrative service fee.
How to Launch an LLC in Dubai?
Follow the steps mentioned below to establish your limited liability company in the UAE:
- Finalize your business activities and send the list of activities for approval to the DED. You’re free to apply for external approvals in case any of the desired activities aren’t covered by the economic department.
- Next, you need to choose a trading name for your venture in the UAE. Ensure that you follow all the naming convention guidelines maintained by the government. Refrain from your derogatory terms and use a person’s full name if you want that as your official trading name.
- The next step is to rent an office space for your LLC. Dubai’s advanced infrastructure allows businesses to enjoy hassle-free functioning, thanks to digitized business solutions and easy resource availability.
- Once you’re done with all the above steps, it’s time to apply for a business license. It’s your legal permit to carry out the desired business activities in Dubai. The business consultants at Shuraa help you obtain the trading license by doing all the heavy lifting for you.
- The last step is to manage your visas and open a corporate bank account for your legal entity. Always choose a reliable bank that offers long-term benefits alongside top-grade banking services.
Which Documents Need to be Submitted to Set Up an LLC in Dubai?
Pre Initial Approval
The list of documents required for initial approval:
- Passport copy of applicant (with visa copy)
- Registration application form from DED
- Receipt of trade name reservation
- Photocopy of applicant’s naturalization identification (confined to UAE nationals only)
- NOC letter for applicant’s current service agent/sponsor (not applicable for GCC nationals)
- Approvals granted by other governing bodies depending on the business type
Post Initial Approval
Following documents are need once you get the initial approval:
- Firstly, receipt of initial approval
- Office/warehouse tenancy contract attested by the Dubai municipality’s planning and civil defense department along with location plan
- Original, duly validated copy of the MoA by the notary public
- Finally, if the partner is an existing corporate organization in the UAE or abroad, the MoA and the commercial registration certificate should be certified and subsequently translated into Arabic by the concerned authorities (UAE Embassy, Ministry of Foreign Affairs, etc.)
Open your LLC in the UAE!
You don’t need to worry about the LLC company cost in Dubai when you collaborate with Shuraa’s legal advisors. We help you obtain the initial approval, take care of translation and notarization requirements, and provide assistance in applying for your business license. Our end-to-end business setup solutions are cost-effective and highly flexible. Let’s connect today to get started!
To book a free consultation, call on +971 44081900. You can also send a WhatsApp message at +971 50 777 5554. To connect over email, send us your query at firstname.lastname@example.org.