If you’re looking to start a business abroad, Dubai is definitely the place to be! Not just an excellent environment to connect with other entrepreneurs, the business-friendly city also offers tax-free living, remarkable infrastructure and a cartload of leisure activities. Setting up a business in Dubai can be a lucrative opportunity for entrepreneurs looking to tap into one of the world’s fastest-growing economies. Entrepreneurs get the flexibility of establishing their business in Mainland, Free Zone and Offshore with ease, which they can choose in line with their company formation budget, business goals and economic activity. Each economic zone is overseen by a different jurisdiction and comes with its own set of features that one must consider while finalising the location for company formation in Dubai. And the rule of thumb is – Whether you pick Mainland or Free Zone for your business setup in Dubai, you must obtain a relevant trade licence (Not applicable to Offshore company formation). However, the process to set up an LLC in Dubai can be complicated and time-consuming, especially for those unfamiliar with the local laws and regulations. This blog will talk about Mainland/Onshore/LLC company setup in Dubai.
Limited Liability Company (LLC) Formation in Dubai
To put it simply, a Limited Liability Company (LLC) is a business venture which is commercial in nature and can have up to 50 shareholders. With the recent amendment in the UAE Commercial Companies Law, LLC has become the most convenient and popular legal vehicle for ex-pat residents and foreigners to incorporate a new company in Dubai, UAE. Click here to know the highlights of the New CCL. The process of company registration in Dubai is so straightforward that you can request for the licence under your own steam. However, engaging a reputed business setup services provider in Dubai can make the journey a lot easier, swifter and free from any bumps or potholes. No matter what route you take to accomplish the goal, getting acquainted with the basics of LLC company formation in Dubai is always helpful.
LLC Company Formation in Dubai: Process & Paperwork
To form a mainland company in Dubai, one needs to apply for a DED trade licence for which they have to undergo certain steps with the required documents duly completed. A Dubai mainland licence is granted by the Dubai Department of Economic Development (Dubai DED) to businesses that are intending to operate from the Dubai mainland which may require distinct approvals from various governmental, semi-governmental or non-governmental entities.
LLC company formation process involves below-mentioned steps:
1. Determine the primary and related business activities you want to conduct in Dubai under single licence
2. Think of an appropriate trade name and have it registered with DED
3. Apply for initial approval by submitting a set of required documents
4. Draft Memorandum of Association (MoA) and other agreements under legal supervision and have them attested duly. MoA is done at the DET online in the presence of the investors right away. It must be signed by all the directors and members of the proposed company
5. Select a location for your business’s physical presence, choose a suitable workspace and receive a duly attested commercial tenancy contract
6. Acquire special approvals from pertinent authorities (if applicable)
7. Submit trade licence application attached with proper documents
8. Pay the application fees and collect the licence when issued
Note: DED usually takes 3-5 working days to dispense a trade licence which comes with one-year validity. Failure to do licence renewal on time can attract fines.
The Cost of LLC Business Setup in Dubai
Knowing the cost of LLC business formation in Dubai beforehand makes you ready with adequate funds and lets you allocate them for different tasks mindfully. Plus, knowing the overall expense for setting up an LLC will also keep you steer clear of any hiccups during the licencing process. However, it is almost impossible to give an exact cost of LLC company formation in Dubai as it depends on myriad factors including your choices and requirements such as the legal form, no. of shareholders & business partners, the type of business activity, external approvals, the attestation fees for legal documents, the office rental, etc. All we can do at the moment is – give you a ballpark range. A mainland company setup in Dubai can cost you anywhere between 15,000 and 50,000 AED. Other components that can add up to the DED licence cost include:
- Licence registration fee: AED 600
- Knowledge Dirham fee: AED 10
- Innovation Dirham Fee: AED 10
- Trade name advertisements: AED 350
- Service request form: AED 50
- Foreign trade name fees: from AED 1000 to AED 3000
- General trading activity fees: AED 15,000
- Investment activity fees: AED 15,000
- Real estate activities fees: from AED 5000 to AED 25,000
- Business centre fees: AED 25,000
- Building contracting activities fees: AED 10,000
- DED trader License: AED 1,070 + AED 300 Dubai Chamber fees
- Intelaq licence (Home-based business for UAE Nationals): AED 1,070
- Memorandum of Association fee / service agent contract:
- AED 300 for the signature of each of the parties to the document for attestation of the signatures on the document (maximum value can go up to one hundred thousand dirhams)
- 0.5% of the value of the document with a maximum of AED 15,000 for attestation of the signatures on the document (value exceeds one hundred thousand dirhams)
- AED 500 in case the postponement of transaction completion after the registration to the next day has been requested by one of the partners
- AED 500 in case the partners choose to sign the document in different service centres
- AED 100 for each partner signing the document digitally
For Professional Assistance to Set Up an LLC Company in Dubai
Get in touch with Adam Global, one of the leading corporate service providers and business setup advisors in Dubai, UAE. With our Dubai business advisors working with you, you don’t have to worry about the red flags involved in the process from document attestation and gathering approvals to finding a perfect location for mainland office setup. Not only do our experienced business consultants in Dubai help you in making the right choices during the course but also become a full-fledged mainland entity by assisting you in doing post-business setup activities such as visa processing, office fit-out, opening a corporate bank account, buying business insurance and so on. Click here to book a free consultancy with one of our most experienced LLC company formation specialists in Dubai to know why you should choose us.