There are so many advantages of starting a business in Dubai such as tax benefits, opening up markets worldwide & an ecosystem of an entrepreneur that thrives. Registering a Limited Liability Company (LLC) is one of the oldest methods to start a business in Dubai. A company structure that strikes a compromise between liability protection for the owners of the business and operability. Registering an LLC and obtaining the business licence is very important for entrepreneurs who wish to scale in Dubai. In this guide, we will take you step-by-step through the process of registering an LLC and obtaining a business license in Dubai.
What is an LLC in Dubai?
Limited Liability Company (LLC) is one of the most used business structures, and Owners liability is limited to the amount of capital they have invested in that company. To be more specific, the owner’s assets are always protected from the liabilities of the company. Khurda type company is popular in Dubai as it is flexible and there is a legal covering for individuals who want to trade or render services. You have to fulfill the DED, Dubai Department of Economic Development rules for registration of an LLC in Dubai.
To Register an LLC in Dubai it would involve few processes. Here is a Step by step simplified overview of each stage with the intention to help you navigate the process.
If you want to register an LLC, first and foremost you should pick the type of business you plan to operate before. Dubai has almost every business activity you can think of and the activity you chose will decide your business license type. Types of licenses most commonly include:
Choosing an activity is important as this would determine the registration legal form and the liability requirements you are going to have during registration.
After you choose your entrepreneurship, now choose the name for your business. The name should be in line with the criteria of DED so that no case arises:
The name can’t be taken by any other user and must not conflict with the current trademarks. You are going to have to select your name and then reserve that through the DED. That will be about the cost to process around AED 750. Do keep in mind that the name of your business should be an identity to what it is and catchy so that it would be easily remembered by your target audience.
After your name is reserved, the next is to get the initial approval from DED in process. A preliminary stage where The DED will check the application and there is no objection to your company registration. In order to get your initial approval you will need to provide:
After the DED gives your first clear, move on to the next steps.
Memorandum of Association (MOA), the legal document to mention the terms and conditions of partnership among shareholders It includes the owner of the company, its capital, business, and how profits and losses are to be shared. The MOA needs to be signed by every shareholder and notarized at public notary. This is one of the most essential documents to register your LLC.
An LLC requires a physical office space in order to be formed. This is an office that you will be using as your business address and it should conform with the DED stipulations for office addresses. It is imperative that the office space is in a tenancy agreement for at least a year and you need to register the tenancy using the Ejari system which is the official venue for registering tenancy contracts in Dubai.
Prices at offices vary based on what part of town and how big your space is. Office rent actually is normally around AED 15,000 -20,000 per annum. Other documents must be submitted along with the lease agreement to DED.
After finishing the previous steps, finally submit the last documents with DED. Usually these are attached documents such as:
Now, you’ll have to pay registration fees too at this point. The cost of registering an LLC in Dubai for valet is approximately between AED 10,000 and 50,000 based on type of business and other things.
When DED has reviewed & approved the documents with you, They will give your business license.
A business license is required to operate any business in Dubai Legally. You need a different business setup based on what your business is licensed for. Some of the licenses available are Part Salefício Part;.
Every business license will have unique requirements and costs so it is crucial that you pick the right license for services or products that would be offered.
There are different aspects to the cost of an LLC in Dubai and all of this differs depending on the kind of business type you have, office location, any other services you may require. Typical Costs are as follows:
| Expense | Estimated Cost (AED) |
| Trade Name Reservation | 750 |
| Initial Approval | 235 |
| License Fees | 10,000 – 50,000 |
| Office Rent (per year) | 15,000 – 20,000 |
| Legal and Consultancy Fees | Varies |
| Employee Visa Fees | 3,000 – 7,000 |
Make Sure to budget your budget and cover all the expenses or the registration process will be delayed.
After you get your business license, just a few other closing tasks are necessary to set up your business.
It is a tough process to set-up a business in Dubai but, with the right professional help from BSET Dubai, starting a business is very simple. BSET Dubai Provides you with the services that assist in the complete process of business setup with experts:
By BSET Dubai, you can certainly prevent these common mistakes and business does set up right and on time.
1. What is an LLC in Dubai?
Such an LLC (Limited Liability Company)—in Dubai is the business, where the owners are liable for the debts of the company to the extent of their contributions only.
Well yes, unless your business qualifies with 100% foreign ownership a local sponsor who owns 51% of the business.
You can get Dubai business licenses like commercial, professional licence, industrial licence, tourism licence and agricultural licence depending on your business activity.
The process usually takes 1-3 weeks from the time your business is fully formed and your documents have been completely accurate.
Yes, a foreigner can register an LLC in Dubai but they need a local partner who owns at least 51% shares and when particular business activity allows full foreign ownership.
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