{"id":11652,"date":"2026-06-03T13:41:43","date_gmt":"2026-06-03T06:41:43","guid":{"rendered":"https:\/\/voffice.co.id\/blog\/?p=11652"},"modified":"2026-06-03T13:41:43","modified_gmt":"2026-06-03T06:41:43","slug":"how-to-set-up-an-llc-company-in-dubai","status":"publish","type":"post","link":"https:\/\/voffice.co.id\/blog\/en\/how-to-set-up-an-llc-company-in-dubai\/","title":{"rendered":"How to Set Up an LLC Company in Dubai in 2026: Requirements, Process, and Cost by Emirate"},"content":{"rendered":"

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.<\/p>\n

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.<\/p>\n

What Is an LLC in Dubai?<\/h2>\n
\"How
How to Set Up an LLC Company in Dubai in 2026: Requirements, Process, and Cost by Emirate (pexels.com)<\/figcaption><\/figure>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Read Also:<\/strong> Business Climate in Dubai: Opportunities for International Entrepreneurs<\/a><\/p>\n

The 2021 Reform: 100% Foreign Ownership on the Mainland<\/h2>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

A separate concept worth understanding is the Local Service Agent (LSA)<\/strong>. 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.<\/p>\n

For standard commercial LLCs, an LSA is no longer required following the 2021 reform.<\/p>\n

Mainland LLC vs Free Zone LLC: How to Choose<\/h2>\n

The choice between Mainland and Free Zone shapes your tax position, operational scope, and cost structure. Here is a direct comparison:<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Factor<\/th>\nMainland LLC<\/th>\nFree Zone LLC<\/th>\n<\/tr>\n<\/thead>\n
UAE market access<\/strong><\/td>\nOperate freely across all UAE<\/td>\nZone and international clients (mainland permit now available)<\/td>\n<\/tr>\n
Foreign ownership<\/strong><\/td>\n100% in most sectors<\/td>\n100% without restriction<\/td>\n<\/tr>\n
Corporate tax<\/strong><\/td>\n9% on profits above AED 375,000<\/td>\n0% for qualifying companies<\/td>\n<\/tr>\n
Office requirement<\/strong><\/td>\nPhysical office, EJARI mandatory<\/td>\nFlexi desk or virtual office available<\/td>\n<\/tr>\n
Government tenders<\/strong><\/td>\nEligible<\/td>\nLimited (separate permit required)<\/td>\n<\/tr>\n
Estimated setup cost<\/strong><\/td>\nAED 25,000 to AED 50,000+<\/td>\nFrom AED 12,000 (Dubai); AED 5,500 (other emirates)<\/td>\n<\/tr>\n
Best for<\/strong><\/td>\nBusinesses serving UAE clients directly<\/td>\nInternational invoicing and global client base<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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.<\/p>\n

For founders who prioritize cost efficiency but may need UAE market access later, this is a meaningful option worth factoring into your structure decision.<\/p>\n

Read Also:<\/strong> How to Start a Business in a Dubai Free Zone: A Complete Guide<\/a><\/p>\n

Documents Required to Set Up an LLC in Dubai<\/h2>\n

These documents are required for all shareholders and directors. Have them ready before you begin to avoid delays at the approval stage.<\/p>\n

Core documents for all LLC types:<\/strong><\/p>\n