How to Register an LLC in Dubai & Explore Other Company Structures
Published Date:
Aug 22, 2025
Last Updated:
Aug 22, 2025
Choosing the right company structure is one of the most important decisions for a successful business establishment. It plays a crucial role in everything from ownership status and legal liabilities to taxation and operational flexibility.
Limited Liability Companies (LLC) are one of the most common forms of business structures in Dubai and the UAE in general. This blog will provide a detailed guide on how to register an LLC in Dubai and explore other alternative types of business structures, such as Sole Proprietorship, Branch Office, Civil Company, and Freezone.
Limited Liability Company (LLC)
What is an LLC?
A Limited Liability Company is among Dubai’s most preferred structures, balancing flexible ownership with limited liability protections for its members. It is one of the most commonly used and a favourable structure for business setup in Dubai, UAE.
It is particularly preferred by small businesses and entrepreneurs. LLCs offer personal liability protection, flexibility with taxes, and management. This business structure is specifically designed to protect its owners/shareholders from personal liability for business debts and obligations.
An LLC can be owned by one person or multiple members and used for legal business purposes. It can be formed with a minimum of 1 member and a maximum of 50 shareholders. Each of the members in the company is liable for their share of the company’s capital. This is what makes shareholders fully protected from liabilities under the Dubai corporate rules.
Benefits of Registering an LLC Company in Dubai
100% Tax-Free for Free Zone Businesses: No income tax for free zone LLCs trading outside the UAE; mainland LLCs pay 9% corporate tax on profits above AED 375,000.
Affordable & Fast Setup: Minimal formation cost; UAE’s instant license initiatives allow registration in about 1.5 hours with the DED.
No Minimum Share Capital: Only an authorized capital of AED 100,000 needs to be shown (not paid up).
Wide Range of Business Activities: Over 2,000 permitted activities across commercial, industrial, professional, and more; flexibility to run multiple ventures with DED approval.
Visa Opportunities: Unlimited work visas for employees; investor and family visas; eligibility for long-term golden visas after meeting investment and business criteria.
100% Foreign Ownership: Many activities no longer require a UAE national sponsor, allowing full foreign ownership for mainland and free zone LLCs.
World-Class Infrastructure: Dubai offers top-tier facilities, iconic buildings, luxury hotels, and a thriving business ecosystem attracting global investors.
Step 1: Decide on The Type of Business Activities
The UAE government offers over 2000 business activities for an LLC. Ensure you make a strategic choice. Conduct thorough market research to identify areas of potential growth and sustainability. Choosing the right business activity when understanding how to register an LLC in Dubai is crucial.
Step 2: Find The Right Location For Your LLC Company
The right location affects income and legal responsibilities. To get the most out of an office, it is recommended to choose a location that is accessible to the potential market.
Make sure you are considering factors such as team size, employees, budget, and other technological requirements. Pay attention to lease or rental agreements as well.
Once you have decided on the location, get the DED’s initial approval certificate. Remember that you will not receive this certificate if the company or trade name is turned down.
Most companies registered in the UAE do not rent office space for the first year. It helps with cost savings for foreign nationals and gives the benefit of testing the capability of the target market.
Step 3: Reserve a Name For Your LLC Company
Once you have finalised the type and nature of business activities the company will engage with, you need to reserve a business name. It should comply with the business naming convention law, which includes:
Uniqueness : The name must not duplicate existing company names.
No Offensive Terms : Names cannot contain profanity, political, or religious references.
Legal Structure Inclusion : Must indicate the business type (e.g., LLC, FZE).
No Violations of Public Morals : Names cannot promote immoral, unethical, or illegal activities.
No Trademark Infringement : Cannot use names identical or similar to registered trademarks.
Language Rules : Names should be in English or Arabic; transliterations must be accurate.
Approval Required : Must be approved by the Department of Economic Development (DED) or relevant free zone authority.
You can try to figure out a name by considering the type of goods, services, objectives, or the target market.
Step 4: Submit All Documents to DED
Once you have reserved a company name for your LLC and finalised the activity and location, submit all the required documents to the DED for approval. The documents essential to register an LLC company in Dubai include:
Copy of the investor’s passport
Emirates ID copy, if any
Copy of the DED’s registration form
The lease agreement for the office space
Entry visa
A few name choices for the company name reservation
Step 5: Make an MOA to Get Approval for Business Activities
As the next step, you need to create a Memorandum of Association for the company outlining its business activities. It should also include accurate details of the company’s legal status and other rights.
Then define the company’s connection with its shareholders, as well as its original goals, vision, and objectives. As the final step, submit the MOA to the authorities with the lease or rental agreement.
Step 6: Obtain a Trade Licence
Once all the documents have been processed by the relevant authorities and approved, you will receive the MOA and other legal documents, including a trade license.
Limited Liability Company in Dubai Capital Requirements
The Department of Economic Development (DED) in Dubai issues LLC licenses and oversees the classification and regulation of permitted business activities.
LLCs in Dubai do not have a mandatory minimum share capital, making them a flexible and accessible option for entrepreneurs. This structure enables business owners to protect their personal assets, enjoy a flexible management setup, and benefit from limited liability, as well as certain tax advantages.
Alongside this, it is important to emphasise that the limited liability company Dubai capital requirement is more of a practical guideline than a strict legal rule:
Mainland LLCs: While UAE law does not mandate a fixed minimum capital, the DED often expects a starting capital of around AED 300,000 for certain business activities. This ensures the business has sufficient funds to operate.
Free Zone LLCs: Most free zone business setups do not require a minimum capital, allowing entrepreneurs to start with a very small or even symbolic amount (sometimes AED 1).
Alternative Business Structures to an LLC
Sole Proprietorship
A sole proprietorship is owned and managed by a single individual. It is a simple business setup option in Dubai and cost-effective, making it ideal for freelancers or small-scale entrepreneurs. The owner, however, bears full personal liability for the business.
Benefits
Full control and decision-making authority.
Simple setup with minimal paperwork.
Low administrative costs.
Quick registration process.
License Requirements
License issued by DED (for mainland) or respective free zone authority.
Must be owned by a single individual (can be UAE or foreign national depending on activity).
Business activities must be clearly listed on the license.
Local service agents may be required for foreigners.
Branch Office
A branch office is an extension of a parent company, either local or foreign. It operates under the parent company’s license and liability, but allows businesses to enter the UAE mainland market without creating a separate entity.
Benefits
Full control retained by the parent company.
Can trade in Dubai mainland markets.
No separate minimum share capital needed in most cases.
Legal continuity with the parent company.
License Requirements
Must be registered under the parent company’s license.
Approval from DED (for mainland) is required to operate.
Cannot operate outside permitted activities listed under the parent company.
Manager appointed for daily operations.
No separate minimum capital in most cases, but proof of the parent company’s capital may be required.
Civil Company
Civil companies are designed for licensed professionals such as doctors, engineers, and consultants. While a local service agent is required, foreign investors can have 100% ownership in certain cases. Liability is shared according to the partnership agreement.
Benefits
100% foreign ownership with a local service agent.
Partners share liability as agreed.
Flexible management structure.
Ideal for professional service businesses.
License Requirements
Issued by DED for professional services.
Requires local service agent if foreign-owned.
Must specify professional activities (consulting, engineering, medical, etc.).
Partners share liability according to agreement.
Office space and qualifications of professionals must be verified.
Free Zone Company
Free zone companies are established within Dubai’s specialized economic zones. They offer 100% foreign ownership, tax exemptions, and full repatriation of profits. Free zones also simplify licensing and registration, though trading outside the zone may require additional approvals.
Benefits
100% foreign ownership.
Full repatriation of profits and capital.
Tax exemptions and incentives.
Quick setup and streamlined licensing.
Access to world-class infrastructure and business networks.
License Requirements
License issued by the respective free zone authority.
100% foreign ownership allowed.
Business activities must align with free zone regulations.
Office or flexi-desk space within the free zone is mandatory.
Some free zones require minimum capital (varies, often symbolic AED 1).
Setting Up A Business in Dubai: LLC vs Other Company Structures
Company Structure | Ownership | Liability | License Authority | Business Scope | Key Benefits |
LLC (Limited Liability Company) | 100% foreign ownership (for most activities) | Limited to shareholders’ capital | Department of Economic Development (DED) | Mainland & GCC markets | Liability protection, multiple visas, wide business activities, tax benefits |
Sole Proprietorship | 100% owned by a single individual | Full personal liability | DED (for mainland) | Professional & consultancy activities | Simple setup, full control, low-cost license |
Branch Office | 100% owned by parent company (foreign or local) | Liability falls on parent company | DED or Free Zone Authority | Same activities as parent company | Full ownership, brand extension, operate under parent’s reputation |
Civil Company | Owned by 2+ professionals (doctors, lawyers, consultants) | Partners personally liable | DED | Professional services only | Ideal for skilled professionals, full ownership for expats |
Free Zone Company | 100% foreign ownership | Limited liability | Free Zone Authority | Restricted to free zone & international trade | Tax exemptions, easy setup, repatriation of profits |
Simplify Your Business Setup in Dubai with TEC
At The Executive Centre, we offer premium flexible workspaces along with full business setup services.
Our team guides you step by step on how to register an LLC in Dubai and helps you explore other company structures to choose the best fit for your business goals.
With our experience supporting global and local clients, we simplify the entire process, ensuring your business foundation is strong so you can focus on growth and success.
