Setting up an LLC in Dubai takes as little as four working days. Since the UAE overhauled its commercial companies law in 2021, foreign nationals can own 100% of a mainland LLC in most sectors without a local partner. Corporate tax sits at 9% on profits above AED 375,000, and personal income tax is zero.
This guide covers every step: choosing your jurisdiction, filing with the Department of Economy and Tourism (DET, formerly DED), drafting your Memorandum of Association, handling EJARI office registration, and estimating the full setup cost across different UAE emirates.
What Is an LLC in Dubai?
A Limited Liability Company (LLC) is the most widely used business structure in Dubai for foreign investors who want a real operating presence in the UAE. Shareholders are protected from personal liability beyond their capital contribution, meaning personal assets stay separate from company obligations.
The LLC structure is governed by Federal Decree-Law No. 32 of 2021 on Commercial Companies. It can have between one and fifty shareholders, making it suitable for solo founders and multi-partner ventures alike.
Two categories exist in Dubai. A Mainland LLC is registered under the DET and can trade freely across the entire UAE. A Free Zone LLC is registered with one of Dubai’s 40-plus free zone authorities and operates primarily in its zone or with international clients.
Read Also: Business Climate in Dubai: Opportunities for International Entrepreneurs
The 2021 Reform: 100% Foreign Ownership on the Mainland
Before November 2020, setting up a Mainland LLC in Dubai typically required a UAE national to hold 51% of the company’s shares. This requirement kept many foreign investors in the free zones, where full ownership had always been permitted.
Federal Decree-Law No. 32 of 2021 removed that requirement across most commercial sectors. Foreign nationals can now own 100% of a Mainland LLC in the UAE in industries ranging from trading and consultancy to technology and retail. This was one of the most significant business environment changes in UAE history.
A small number of strategic sectors, including defense, security, and certain oil-related activities, still carry Emirati ownership requirements. Check which category applies to your business before starting the registration process.
A separate concept worth understanding is the Local Service Agent (LSA). An LSA is a UAE national who acts as an administrative representative for certain professional sole establishment structures. The LSA does not hold shares and receives a fixed annual fee, not equity.
For standard commercial LLCs, an LSA is no longer required following the 2021 reform.
Mainland LLC vs Free Zone LLC: How to Choose
The choice between Mainland and Free Zone shapes your tax position, operational scope, and cost structure. Here is a direct comparison:
| Factor | Mainland LLC | Free Zone LLC |
|---|---|---|
| UAE market access | Operate freely across all UAE | Zone and international clients (mainland permit now available) |
| Foreign ownership | 100% in most sectors | 100% without restriction |
| Corporate tax | 9% on profits above AED 375,000 | 0% for qualifying companies |
| Office requirement | Physical office, EJARI mandatory | Flexi desk or virtual office available |
| Government tenders | Eligible | Limited (separate permit required) |
| Estimated setup cost | AED 25,000 to AED 50,000+ | From AED 12,000 (Dubai); AED 5,500 (other emirates) |
| Best for | Businesses serving UAE clients directly | International invoicing and global client base |
Dubai Executive Council Resolution No. 11 of 2025 introduced a framework allowing free zone companies to apply for a permit to conduct approved activities on the mainland. This means a free zone LLC can now access the local UAE market without establishing a separate mainland entity.
For founders who prioritize cost efficiency but may need UAE market access later, this is a meaningful option worth factoring into your structure decision.
Read Also: How to Start a Business in a Dubai Free Zone: A Complete Guide
Documents Required to Set Up an LLC in Dubai
These documents are required for all shareholders and directors. Have them ready before you begin to avoid delays at the approval stage.
Core documents for all LLC types:
- Valid passport for all shareholders and directors
- Recent passport-size photographs
- Proof of residential address (utility bill or bank statement, last three months)
- Proposed company names (prepare three alternatives)
- Description of the intended business activity
Additional requirements for Mainland LLC:
- Office tenancy agreement (for EJARI registration)
- Notarized Memorandum of Association (MOA)
- Completed DET registration form
- Sector-specific approvals if your activity requires them
Additional requirements for Free Zone LLC:
- Brief business plan (required by some zones)
- MOA or Articles of Association in the format prescribed by the chosen free zone
Step-by-Step LLC Setup Process in Dubai 2026
The full process involves several authorities in sequence. For standard commercial activities without special approvals, company registration takes approximately four working days.
Step 1: Define Your Business Activity and Jurisdiction
Select your business activity from the DET’s list of over 2,000 approved categories. Your activity determines the license type (commercial, professional, or industrial) and, in some cases, specific ownership requirements. At this stage, also decide between Mainland and Free Zone based on your market focus and budget.
Step 2: Reserve a Trade Name
Submit two to three name options to the DET (for Mainland) or the relevant free zone authority. Names cannot imply government affiliation or religious association without special approval. The trade name reservation fee for Mainland is approximately AED 620 to AED 720.
Step 3: Obtain Initial Approval
Initial approval from the DET confirms that your application can move forward. The fee is approximately AED 120 to AED 300. This is not a final license but the authority’s confirmation that your application is acceptable in principle.
Step 4: Draft and Notarize the Memorandum of Association (MOA)
The MOA is the foundational legal document that records shareholder names, ownership percentages, business activities, and management structure. It must be notarized before submission to the DET. Notarization fees typically range from AED 500 to AED 2,000 depending on the notary used.
Step 5: Register an Office via EJARI (Mainland Only)
EJARI is Dubai’s official tenancy contract registration system. Mainland LLCs must have a physical office address registered through EJARI before the trade license can be issued. Free zone companies fulfill the office requirement through their zone’s flexi desk or workspace arrangement.
Office rental costs vary significantly by location, starting from approximately AED 4,000 per year for a minimal setup in less central areas.
Step 6: Submit Documents and Pay License Fees
Once all documents are complete, submit them to the DET or free zone authority along with the license fee payment. For a single commercial activity Mainland LLC, the annual license fee ranges from AED 10,000 to AED 25,000 depending on activity type. Free zone packages typically bundle the license fee into their annual package price.
Step 7: Apply for UAE Residency Visa
After the company is registered, apply for a UAE Residency Visa. The process covers an entry permit, medical fitness exam, Emirates ID application, and visa stamping. One investor visa costs approximately AED 4,000 to AED 6,500 in government fees, with processing taking seven to ten working days.
Step 8: Open a Corporate Bank Account
A UAE corporate bank account is the final step before the company can operate fully. Banks require complete company documents, director identification, and a clear business profile. Account verification typically takes three to five working days after document submission.
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Dubai LLC Setup Cost in 2026: Full Breakdown
There is no single number for Dubai LLC setup costs. The total depends on your business activity, how many shareholders need visas, your office choice, and whether you go Mainland or Free Zone. What follows are itemized estimates based on publicly available 2025-2026 market data.
Itemized Cost Breakdown: Dubai Mainland LLC (Estimates)
| Cost Component | Estimated Fee (AED) | Notes |
|---|---|---|
| Trade name reservation | 620-720 | DET fee, mandatory |
| Initial approval fee | 120-300 | DET fee, mandatory |
| Trade license (single activity) | 10,000-25,000 | Varies by activity type |
| MOA notarization | 500-2,000 | Notary fee, varies |
| EJARI (office rent + registration) | 4,000-15,000+/yr | Location and size dependent |
| Market fee | 5% of annual rent | Mandatory for Mainland |
| Establishment card | ~2,200 | Official company identity card |
| Investor visa (per person) | 4,000-6,500 | Entry permit, medical, Emirates ID, stamping |
| Estimated Year-One Total | AED 25,000-50,000+ | Depends on activity and office choice |
*All figures are indicative estimates based on 2025-2026 market data. Verify current fees directly with the DET or a licensed UAE business setup consultant.
Cost Comparison by Emirate and Jurisdiction (Free Zone, Estimates)
If your business is primarily international-facing, free zones in other UAE emirates can significantly reduce setup costs. Here is a practical comparison:
| Emirate / Jurisdiction | Est. License Fee/Year (AED) | Key Characteristics |
|---|---|---|
| Dubai Mainland (DET) | 25,000-50,000+ | Full UAE market access, government tenders, EJARI required |
| Dubai Free Zones (DMCC, IFZA, Meydan) | 10,000-30,000 | Prestige address, 100% ownership, flexi desk available |
| Abu Dhabi (ADGM, twofour54) | 12,000-30,000 | Financial hub, strong for fintech and media companies |
| Sharjah (SHAMS, Hamriyah) | 5,500-15,000 | Affordable, close to Dubai, good for media and trading |
| Ras Al Khaimah (RAKEZ) | 5,500-12,000 | Cost-effective, well-suited for industrial and manufacturing |
| Ajman (AFZA) | 4,000-8,000 | Lower cost entry, practical for early-stage startups |
| Umm Al Quwain (UAQ FTZ) | 3,500-8,000 | Among the most affordable; strong for e-commerce and digital businesses |
*Estimates based on publicly available 2025-2026 data. Fees change per licensing cycle. Always verify directly with the relevant free zone authority.
These license fees exclude visa costs, insurance, and ongoing operational expenses. Year-one totals are consistently higher than the license fee alone. For a detailed look at how corporate tax applies across structures, read vOffice’s guide to Dubai’s tax regulations for businesses.
Not Sure What Your Total Dubai Setup Will Actually Cost?
vOffice packages, ISO 9001 certified, bundle visa, MOA, EJARI, and virtual office into one transparent price with no hidden fees.
vOffice Dubai LLC Setup Packages
Coordinating a company registration in a foreign country while running a business elsewhere means managing multiple timelines, document standards, and authority requirements at once. Getting the DET submission right, arranging EJARI, processing visas, and passing bank verification each have their own requirements and deadlines.
Working with a team that understands both the originating country and UAE registration processes removes most of that coordination burden.
vOffice’s Dubai company setup service provides end-to-end support, from jurisdiction selection and MOA drafting through DET or free zone submission, residency visa processing, and corporate bank account opening. The team is based in Jakarta and communicates in both Indonesian and English.
| Package | Price | What’s Included |
|---|---|---|
| Mainland LLC + 2-Year Visa + Corporate Bank Account | USD 10,209 |
|
| Free Zone LLC + 2-Year Visa + Corporate Bank Account | USD 3,267 |
|
vOffice was the first Indonesian office services provider to expand operations to Dubai and works with the Dubai Chamber through the Global Partnership Programme. With over 50,000 clients served and ISO 9001 certification, the team brings structured processes to what can otherwise be a fragmented setup experience for international founders.
Frequently Asked Questions
Can a foreign national own 100% of a Dubai LLC without a local partner?
Yes. Federal Decree-Law No. 32 of 2021 allows foreign nationals to own 100% of a Mainland LLC in most commercial sectors. A few strategic sectors retain Emirati ownership requirements. Free zone LLCs have permitted 100% foreign ownership without restriction for decades.
How long does LLC registration in Dubai take?
For standard commercial activities, company registration takes approximately four working days. Residency visa processing adds seven to ten working days, and corporate bank account verification typically takes three to five additional working days. Regulated sectors such as finance, healthcare, and education can take four to eight weeks due to required approvals from sector regulators.
What is the difference between a Mainland LLC and a Free Zone LLC?
A Mainland LLC is registered under the DET and can trade freely across the UAE, access government tenders, and serve local clients directly. A Free Zone LLC is registered within a specific zone and benefits from 0% corporate tax for qualifying companies.
Historically, free zone companies could not trade directly on the mainland. Since Executive Council Resolution No. 11 of 2025, they can now apply for a mainland operating permit without creating a new entity.
What is a Memorandum of Association (MOA) in Dubai?
The MOA is the foundational legal document that establishes the company. It records shareholder names, ownership percentages, business activities, and management structure. For a Mainland LLC, the MOA must be notarized before submission to the DET. For a Free Zone LLC, the document follows the format set by the relevant zone authority.
Is there personal income tax in Dubai?
No. The UAE does not levy personal income tax. However, the government introduced a 9% corporate tax in 2023 on business profits above AED 375,000 for mainland-operating entities. Free zone companies that meet qualifying conditions continue to benefit from a 0% corporate tax rate on eligible income.
Do I need a Local Service Agent for a Dubai LLC?
For a standard commercial LLC, no. The Local Service Agent arrangement applies to certain professional sole establishment structures where a UAE national acts as an administrative representative for government dealings, without holding equity. Following the 2021 commercial companies reform, this requirement no longer applies to commercial LLCs in most sectors.
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References
1. UAE Ministry of Economy. (2021). Federal Decree-Law No. (32) of 2021 on Commercial Companies. UAE Ministry of Economy.
https://www.economy.gov.ae/
2. UAE Ministry of Finance. (2022). Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. UAE Ministry of Finance.
https://mof.gov.ae/
3. KPMG UAE. (2025). Dubai issues resolution enabling free zone companies to operate on mainland. KPMG.
https://kpmg.com/ae/en/insights/tax-insights/dubai-issues-resolution-enabling-free-zone-companies-to-operate-on-mainland.html
4. Gulf News. (2025). New free zone mainland operating permit to grow Dubai businesses. Gulf News.
https://gulfnews.com/business/markets/new-free-zone-mainland-operating-permit-to-grow-dubai-businesses-1.500298990
5. vOffice. (2026). Company Establishment Services in Dubai, UAE (Free Zone & Mainland). vOffice.
https://voffice.co.id/en/services/company-registration-dubai
6. Invest in Dubai, Government of Dubai. (2026). Business Setup in Dubai.
https://invest.dubai.gov.ae/
