Step-by-Step Guide to Business Formation in Dubai in 2024

Are you considering starting a business in the vibrant city of Dubai? You’re setting your sights on one of the world’s premier locations for company establishment. Dubai’s emergence as a top business hub is backed by its strategic geographical location, excellent infrastructure, and investor-friendly policies, including 100% ownership in free trade zones, zero income tax, and a broad range of permissible business activities.

This guide, brought to you in collaboration with AL Ahly Translation Services, a leading legal document translation service provider in the UAE, aims to provide you with a comprehensive understanding of setting up a Limited Liability Company (LLC) in Dubai.

Why Choose Dubai for Your LLC?

Dubai offers unparalleled advantages for businesses, such as:

  • Rapid Setup: Register your business with the Department of Economic Development (DED) in as little as 90 minutes, with the entire setup process usually taking just a few days.
  • Tax Incentives: Enjoy the benefit of 100% tax exemption on income for LLCs.
  • Diverse Business Opportunities: With over 2,000 economic activities recognized, Dubai welcomes a wide array of business ventures.
  • Full Foreign Ownership: Certain business licenses now allow 100% foreign ownership, removing the need for a UAE National Sponsor.

LLC Formation Costs in Dubai

The cost to establish an LLC in Dubai typically ranges from AED 20,000 to 30,000, varying by industry and required services. For precise pricing tailored to your business needs, consulting with Creative Zone ensures you get the best value.

Steps to Establish an LLC in Dubai

  1. Name Selection: Decide on a company name and the scope of operations.
  2. Location Selection: Choose a strategic location based on market accessibility and business nature.
  3. Business Activity Selection: Identify the most suitable DED license for your business activity, with guidance from Creative Zone.
  4. Document Submission: File all necessary documents with the DED for approval.
  5. Activity Approval: Obtain approvals from relevant authorities for certain business activities.
  6. License Acquisition: Secure all legal documents including the trade license, visas, and labor cards following authority approvals.

Required Documentation

To start an LLC in Dubai, you’ll need:

  • Passport copies of the investor and local sponsor
  • No Objection Certificate for shareholders employed in the UAE
  • Emirates ID copy
  • DED registration application form
  • Attested office tenancy contract
  • Attested Memorandum of Association

Frequently Asked Questions (FAQs)

  • Starting an LLC in Dubai: It involves registering the company name, submitting required documents to DED, completing the visa process, and opening a bank account.
  • Cost of Setting Up: LLC registration costs range from AED 20,000 to 30,000, with additional fees for visas and employee hiring.
  • Meaning of LLC: In the UAE, an LLC is a Limited Liability Company with 2 to 50 shareholders, each liable only to the extent of their share in the capital, allowing trade across the UAE and GCC without income tax or fixed capital requirements.

Partner with AL Ahlay Translation

AL Ahlay stands as UAE’s trusted legal translation company, supporting loads of businesses and individuals since 2022.

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