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LLC Formation in Dubai - UAE Complete Guide

Limited-Liability Company (LLC):

There are very limited number of shareholders in a limited liability company. The shareholders are between the numbers of 2-50. Their liability is limited according to their number of shares only. The shareholding companies is free to perform any kind of work except for insurance, banking or money investment. UAE had eliminated their minimum capital requirement law on 10th of august, 2009.

The memorandum of association must include the following:

  • Trade name of the company,
  • Objectives,
  • Head office,
  • Duration,
  • Names of shareholders,
  • Their nationalities,
  • Addresses,
  • Places of residence,
  • Amount of capital,
  • Share of each shareholder,
  • Statement of capital paid in kind (if any),
  • Names and nationalities of the company managers,
  • Distribution of profits and losses which may not necessarily be in the same proportion as the capital,
  • And the adopted method of notification.

There is no capital deposit rule in Dubai which means that there is no need for Bank Deposit Certificate and Auditor Certificate to form a limited liability company. Minimum capital requirement in Abu Dhabi is DH 150,000. The operation of the account will be done by the manager. There is no limit to number of managers of the same company and each of them can have all the control over the account. The owner of the shares is free to share his shares with any other company under his supervision. No more than 5 managers are allowed to handle the management of the company. All those people who don’t reside in UAE can have up to 49% of the shares for themselves.

When it comes to profit and loss, a foreign investor can have up to 80% and a local UAE sponsor can have up to 20%.

It is imperative that each limited-liability company appoints auditors to satisfy the requirements of the Commercial Companies Act. The law does not permit this form of company to issue share certificates. Evidence of ownership in the company is related and evidenced by the percentage contributed, assigned, or transferred in the share capital.


Silent partner:

A bigger part of Dubai limited liability company use the local UAE sponsor as a "silent partner." On this arrangement, the nearby UAE sponsor is commonly paid an annual "sponsorship price" in return for giving up management handling of the corporation to the overseas investor.

Steps of forming a limited-liability corporation:

Call reservation from department of economic development or on time office at enterprise village near clock tower or Tas'heel center at al Tawar center, Qusais. The charges are DH 260 which includes service rate. Overseas/English phrases and short words/abbreviation can be charged extra charge of DH 2000 each year at the time of license renewal. First time prices ought to be paid along with first license fees.

Trade names that cannot be reserved: call of country, name of continent, famous regions and towns, color (blue, red etc.).

Initial acclaim for interest from department of economic development Initial approval charge DH 210 to be paid at DED.

Documents required for initial approval:

  • Completed form,
  • Passport copies of companions,
  • Naturalization e book's (jinsiyya) copy of neighborhood accomplice,
  • No objection letter from the sponsor for expatriate companions (noc isn't required for go to/traveler visa holders and their visa replica should be connected).

If UID number isn't noted inside the go to/visitor/transit visa, it has to be gathered from immigration branch on fee of DH 130.

Some activities require initial approval from involved departments (e.g. municipality, RTA, countrywide media council and many others.)

Preparing memorandum of association (LLC settlement):

Attestation of memorandum of affiliation from notary public. As in step with the brand new rule, the courtroom agreement ought to be typed with the aid of prison translator or get seal and signature of the legal translator on the agreement if it is typed from normal typing centre.

Tenancy agreement (it is recommended to contact the counter of the making plans dept. of Dubai municipality, on the department of financial improvement, or the municipality’s phone no. 04-2063788, before leasing the premises to be able to make certain that it is suitable for the commercial enterprise). Get approval on tenancy contract from planning dept. of Dubai municipality at DED.

Submit initial approval, mention reservation certificate, attested memorandum & tenancy contract at Department of Economic Development.

Payment voucher could be issued identical time or may be published from DED website after two days.

 Special approval required for certain business activities from the concerned authorities

Tourism Companies:

  • For Inbound Tourism DH 100,000 to be deposited in Bank.
  • For Outbound Tourism DH 200,000 to be deposited in Bank.

These deposits cannot be refunded till the license is cancelled.


DH 100,000 to be deposited for travelling agency at Department of Tourism & Commerce Marketing. This deposit is also nonrefundable until after the license gets cancelled.

Building Contracting Companies:

Dh 10,000 is supposed to be paid extrafor Building Contracting Company License, that too at the Department of Economic Development when the license has been issued first time. The required office area should be at least 1500 square feet big.

Engineering Consultants:At least 1000 square feet is required as the office space.

General Trading:

For General Trading License, the amount of Dh 15,000 is supposed to be paid extra at the Department of Economic Development when the license has been granted for the first time.

Customs Broker:

Dh 50,000 is supposed to be paid at Dubai Customs. This deposit cannot be returned till the license is cancelled.

RTA Activities (following fees to be paid for RTA initial approval):

  • Rent a Car: Dh5000 
  • Bus Rental: Dh1000
  • Passenger Transport by rented Buses: Dh1000

Telephones & Telecommunications Equipment Trading:

The amount DH 5500 will be deposited at Telecommunications Regulator Authority (TRA). This payment will only be paid once.

Security Service:

Property guard & Surveillance Services, Party security & private guarding services.

Oilfield & Natural Gas related activities:

Permission is required from the Ruler's Court.

Money Exchange:

Permission is required from the Central Bank of UAE and Department of Protective Systems.

Jewelry, Mobile SIM Card Trading, Stamp & Seal Making:

Permission is required from the Department of Protective Systems.

Car Wash License is only granted to those places where there are proper petrol pumps. This also requires to take the permission from the following oil company whose oil is being used to have them to allow the people to use their oil. Other formalities of safety and protection of the people have to be taken care of alongside it.


For supermarket, minimum 2000 square feet area is required.

Electrical Fitting Contracting:minimum 360 square feet office area is required.

Cafeteria/Coffee Shop:

Minimum 175 square feet kitchen area is required.

| Modified: August 19, 2018 | Author:

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