If you’re looking into starting a business in Dubai, UAE, you’ll be familiar with the most common types of incorporation. They are, of course, free zone and mainland. While both have their advantages and conditions, setting up in the mainland remains the most popular choice.
However, not all mainland setups are the same. There are, in fact, many different types of business that can be incorporated here. One of the most common is the LLC – and that’s the one I’ll be covering in detail today.
As always, when you start this type of business in Dubai with the help of the experts at Business Incorporation Zone (BIZ), the process is fast, affordable and straightforward. So, if you’re looking for a little more information on LLCs, keep reading.
What does LLC stand for in the UAE?
LLC stands for Limited Liability Company – and the name really gives an insight into this type of company setup in Dubai.
In simple terms, the owner or owners of such a company benefit from limited liability, meaning they bear no personal responsibilities for the company’s debts. Nor can their personal assets be implicated should the business go into liquidation.
What are the benefits of starting an LLC in Dubai, UAE?
There are many incredible benefits to LLC company formation in Dubai, UAE. For one, you can set up anywhere in the UAE mainland and benefit from the country’s 0% tax rate on both corporate and personal income.
You’re also free to trade in one or more of thousands of industries, including everything from accounting and marketing to textile trading and water treatment. This flexibility continues when it comes to expanding. As you are not confined to a free zone, you can branch out across the UAE and beyond as your business grows.
Similarly, there is no maximum cap on the number of visas you can apply for, so you are free to hire a theoretically unlimited number of employees. However, visas are limited to the size of your business premises, so you can actually apply for one visa per 100 sq. ft. of space.
How do I start a Limited Liability Company in Dubai?
The first thing to do when embarking on LLC company formation in Dubai, UAE, is to partner with BIZ. After a short consultation to understand the needs of your business, we’ll guide you through the following process, managing all application on your behalf.
Steps to open an LLC in Dubai, UAE
1. Set out your business activities
When starting a company in Dubai, the first step is to clearly define your business activities, as these will need to be stipulated on your license.
Any chosen activity must align with the official Department of Economic Development (DED) list.
2. Choosing your company name
The next important step to take before making your application is to choose a company name. There are a few key things to keep in mind at this stage – many that would not apply anywhere else in the world.
Be aware that you must abide by a strict set of naming conventions. In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
3. Applying for your trade license
You can now apply for your LLC license. When opting for a UAE mainland license, you can make your application online via the e-channel portal, or in-person at a service centre.
We will manage this process for you, liaising with all relevant authorities and ensuring your application is in check before filing.
4. Applying for your visas
You’ll also need a residency visa to work in the UAE – as will your employees, should you have any. Again, with the right guidance, the visa application process can be incredibly straightforward.
As the holder of a UAE business license, you can also sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper.
Documents required to start an LLC in Dubai, UAE
When setting up an LLC in Dubai, you will usually need to provide the following documents and more:
- Copies of the passports for all the license parties (partners and managers).
- A copy of residence visa and NOC (if applicable).
- A copy of your visa (if applicable).
What is the LLC company formation cost in Dubai, UAE?
Many factors will impact the cost of opening an LLC in Dubai. Your industry, location, size, number of employees and more will all have a bearing.
The best way to get a detailed breakdown of the costs involved is to get in touch with BIZ for a free consultation.
Are you ready to launch your LLC in Dubai, UAE?
Hopefully this guide has made clear that if you’re armed with the right knowledge, setting up an LLC business in Dubai doesn’t have to be overly complex.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a Dubai business setup specialist such as Business Incorporation Zone (BIZ) when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visa applications that are required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.