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Full Explain about Limited Liability Company (LLC) in Dubai

Limited Liability Company in Dubai

Full Explain about Limited Liability Company (LLC) in Dubai

A Limited Liability Company (LLC) is a popular legal structure for businesses in Dubai. It offers a flexible and practical option for local and foreign entrepreneurs looking to establish their presence in the city. Here is an explanation of the key aspects of an Business setup in Dubai:


An LLC in Dubai requires a minimum of two and a maximum of 50 shareholders. These shareholders can be individuals or corporate entities, and they contribute to the company’s capital.


The liability of the shareholders in an LLC is limited to their respective shares in the company’s capital means that their assets are protected from the company’s liabilities.

Capital Requirements:

 The minimum capital requirement for establishing an LLC in Dubai depends on the business activity and the company’s location. However, in recent years, Dubai has removed the mandatory minimum capital requirement for most business activities, making it more flexible for entrepreneurs.

Local Sponsor:

 In Dubai, an LLC must have a local sponsor or a local service agent who is a UAE national. The local sponsor holds a minority share (51%) in the company but does not have the right to the profits or management control. This sponsorship arrangement is a legal requirement for mainland companies in Dubai.

Management and Operations:

 An LLC in Dubai can have a board of directors or managers who oversee the company’s operations. The management structure and responsibilities are outlined in the Memorandum of Association (MOA) and the company’s Articles of Association (AOA).

Trade Name:

 Choosing a trade name is essential in setting up an Dubai Company Formation. The name should comply with the guidelines set by the Department of Economic Development (DED) and should not infringe on any existing trademarks or violate any laws.

Registration and Licensing: 

The company must be registered with the DED or the relevant free zone authority to establish an LLC in Dubai. The registration process involves submitting the necessary documents, obtaining approvals, and paying the applicable fees. Additionally, the company must obtain the appropriate licenses related to its business activities.

Business Operations: 

An LLC in Dubai can engage in a wide range of business activities, except those specifically restricted or requiring special approvals. These activities include trading, manufacturing, services, consulting, and more.

Banking and Visa Facilities: 

Once an LLC is registered, it becomes eligible to open a corporate bank account and apply for residence visas for its employees and shareholders.

Compliance and Reporting:

An LLC in Dubai must comply with the local laws and regulations, including filing annual financial statements, renewing licenses, and maintaining proper accounting records. Non-compliance can result in penalties or legal consequences.

Establishing an LLC in Dubai provides entrepreneurs with the benefits of limited liability, operational flexibility, and access to a vibrant business environment. However, seeking professional advice and working with a business consultancy or legal advisor is important to ensure compliance with the specific requirements and regulations governing LLCs in Dubai.