How to Register an LLC in Dubai and Compare Company Types

Dubai offers one of the most business-friendly environments in the world, but choosing the wrong legal structure can cost you in taxes, ownership restrictions, or operational limitations.

This guide explains, step by step, how to register an LLC in Dubai and compares alternative structures, including Sole Proprietorship, Branch Office, Civil Company, and Free Zone setups.

Limited Liability Company (LLC)

What is an LLC?

A Limited Liability Company (LLC) is the most popular structure for small to mid-sized businesses in Dubai, and the most favourable structure for business set up in Dubai.

It offers limited liability protection, 100% foreign ownership for most activities, and flexibility across commercial, industrial, and professional sectors.

• Shareholders: 1 to 50

• Liability: Limited to each shareholder’s capital share

• Ownership: 100% foreign ownership now permitted in most commercial/industrial activities (exceptions apply)

• Regulator: Department of Economic Development (DED) for mainland, or free zone authority

Why Choose an LLC in Dubai?

Dubai offers numerous advantages for businesses registering as an LLC. The table below summarises the key benefits and explains why each one matters for entrepreneurs and investors.

Step 1: Decide on The Type of Business Activities 

In Dubai, your LLC must be licensed for a specific business activity. Choose the one that fits your operations, confirm there’s market demand, and ensure it keeps you compliant and set for growth.

Step 2: Find The Right Location For Your LLC Company

The right location can significantly impact income and legal responsibilities. To maximize the benefits of an office, it is recommended to select a location that is easily accessible to the target market. 

Ensure that you consider factors such as team size, employee needs, 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. 

Many newly registered companies in the UAE opt for flexible workspace solutions during the first year, allowing cost efficiency and market testing. It helps with cost savings for foreign nationals and provides the benefit of testing the target market's capabilities. 

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: Name must not match an existing company.

• Prohibited Terms: No profanity, political, or religious references.

• Legal Structure: Must include entity type (LLC, FZE, etc.).

• Public Morals: Cannot promote immoral, unethical, or illegal activity.

• Trademark Protection: Must not infringe registered trademarks.

• Language Compliance: Allowed in English or Arabic with accurate translation.

• Regulatory Approval: Requires clearance from DED or the free zone authority.

Consider selecting a name that reflects your business’s products, services, objectives, or target market to ensure relevance and compliance.

Step 4: Submit All Documents to DED

Once you have reserved your company name, chosen the business activity, and secured a location, submit the required documents to the Department of Economic Development (DED).

Core documents include:

• Investor’s passport copy

• Emirates ID copy (if applicable)

• Completed DED registration form

• Office lease agreement (Ejari)

• Entry visa copy

• Multiple name options for company reservation

Additional approvals may apply depending on your sector:

• No Objection Certificates (NOCs): Required for regulated sectors such as education, healthcare, and financial services. Processing time: 1-3 weeks.

• Entry Visa & Emirates ID: Investor and employee visas require extra clearance and document verification. Processing time: 2-4 weeks.

• Sector-Specific Permits: Industries such as food, construction, and professional services may need further approvals or inspections before the trade licence is issued.

Timelines:

• Standard activities: Approval usually within 1-2 business days.

• Regulated or complex activities: May extend to several weeks.

Tip: Build buffer time into your setup plan to account for additional approvals and ensure full compliance with DED and UAE regulations.

Step 5: Draft and Approve Memorandum of Association (MOA)

For a Dubai LLC, the Memorandum of Association (MOA) is a mandatory legal document that must be notarised and approved by the Department of Economic Development (DED) or the relevant free zone authority.

The MOA should clearly state:

• The company’s approved business activities.

• Its legal structure (LLC, FZE, etc.).

• Shareholder names, roles, and ownership percentages.

• Rights and responsibilities of shareholders.

• Profit distribution and decision-making procedures.

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) regulates LLC licences and permitted activities. While UAE law no longer enforces a fixed minimum share capital for mainland LLCs, capital must still be declared in the Memorandum of Association (MOA).

Key Notes:

• Authorised capital: The total capital stated in the company’s documents (MOA). Does not need to be fully deposited upfront.
  
  

• Paid-up capital: The portion of authorised capital actually paid into the company’s bank account. Some activities or free zones may require a portion to be paid.

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 is personally liable for all business obligations.

Benefits

• Full control and decision-making authority.

• Quick setup with minimal paperwork.

• Low administrative costs.

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.

• A local service agent may be required for foreigners.

Branch Office

A branch office is an extension of a parent company (local or foreign). It does not create a separate legal entity; instead, it operates under the parent company’s licence and liability while enabling access to the UAE mainland market.

Benefits

• Full control retained by the parent company.

• Ability to trade directly on the Dubai mainland.

• No separate minimum share capital required 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.

• Proof of the parent company’s capital may be required, though no separate capital is typically mandated.

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 per agreement.

• 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, healthcare, etc.).

• Partners share liability according to agreement.

• Office space and proof of professional qualifications is required.

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.

• 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

Set Up and Scale with The Executive Centre in Dubai

At The Executive Centre (TEC), we provide premium flexible workspaces and comprehensive business setup support tailored for entrepreneurs, SMEs, and global enterprises in the UAE. Whether you’re registering an LLC or exploring alternative company structures, our experts offers step-by-step guidance, ensuring your business setup is smooth, compliant, and efficient.

With over 10 years of experience supporting more than 1,500 clients across Dubai and the UAE, we combine local expertise with global insights to help you choose the right office solution and structure for your business. Whether you need a prestigious business address, a move-in-ready office at Dubai’s One Central, or end-to-end support with visas and approvals, TEC provides the infrastructure and know-how to accelerate growth.

Connect with our team on WhatsApp for personalised advice or book a tour to experience our premium workspaces first-hand. With us managing your setup, licensing, and office needs, you can focus fully on growing your business in the UAE.

Key Takeaways

• LLC Advantages: Limited Liability Companies protect shareholders, allow flexible ownership, and are ideal for most commercial activities in Dubai.

• Mainland vs Free Zone: Mainland LLCs commonly require AED 300,000 capital and pay 9% corporate tax over AED 375,000, while Free Zone LLCs can start with minimal capital and enjoy 0% corporate tax for activities outside the UAE.

• Alternative Structures: Sole Proprietorships, Branch Offices, Civil Companies, and Free Zone setups each cater to specific business needs, liability considerations, and ownership rules.

• Regulatory Compliance Matters: Proper approvals, visas, MOA, and trade licences are essential; complexity varies by industry and business activity.

• The Executive Center as a Trusted Partner: We combine premium office solutions with regulatory expertise, making business setup in Dubai seamless, compliant, and efficient.