How to Start an LLC Company in Dubai Mainland | A Complete 2025 Guide
Establishing a Limited Liability Company (LLC) in Dubai Mainland offers a competitive edge to start building a business in one of the world’s most developing economies. Dubai’s strategic location, tax-friendly policies, and business-friendly regulations make it a top-notch option for entrepreneurs. Whether you are looking for e-commerce, hospitality, or consultancy, a mainland LLC can enable you to trade without restrictions within the UAE and internationally. Having assisted friends with business setup in Dubai, I appreciate how the procedure, though looking complex, can be straightforward with proper guidance. This document addresses “How to start an LLC in Dubai Mainland?” and provides a candid walkthrough on costs, requirements, and supplementary recommendations.
Understanding a Dubai Mainland LLC
A Dubai Mainland LLC is a business entity type that limits liability to the company and protects your personal assets. It is established with the Dubai Department of Economic Development (DED), which issued it a license, and it is regulated under UAE Federal Law No. 2 of 2015. An LLC can have 1–50 shareholders and operate in various sectors such as trade, consultancy, and manufacturing. Unlike free zone companies, a mainland LLC can operate directly in the UAE market and is eligible for government contracts, making it more suitable for companies with local customers.
Since 2020, 100% foreign ownership has been permitted for more than 2,000 business activities, but some strategically important sectors, such as oil and defense, still require a local sponsor with 51%. The Dubai Chamber of Commerce provides strategic assistance, and the UAE mainland market thrives on economic diversification and has a favorable attitude towards foreign investors. For example, a colleague established an e-commerce LLC to sell in Dubai, and he told me that the flexibility was unparalleled compared to free zones.
Advantages of a Dubai Mainland LLC
- Free Trade Access: Do business all over the Emirates, starting from Dubai and going to Abu Dhabi without restrictions.
- Exemptions: Small businesses do not pay any corporation tax, and there is no personal income tax.
- Full Control of Business: In a majority of industries, full ownership is now enabled due to changes in legislation.
- Broad Business Scope: From online business to tourism, operate them all under one trade licence for thousands of activities.
- Government Issued Contracts: Constructive or IT businesses are facilitated to bid for valuable projects.
- Flexible Visas: Depending on the size of the office, unlimited employee and family visas can be sponsored.
- Strategic Access: Dubai gives a gateway to the Middle East, Africa, and Asia.
- New Branches: Branches can be added all over the UAE without restrictions as a means to scale the business.
Step-by-Step Guide to LLC Formation in Dubai Mainland
I have laid out a roadmap for starting an LLC in the Dubai Mainland, shaped by my experiences assisting others through the journey.
Step 1: Selection of a Business Activity
You can choose a business activity available under the DED, such as retail, consultancy, or manufacturing. Note that some business activities, such as real estate, have restrictions and require clearance from the governing bodies like the Real Estate Regulatory Agency (RERA) or the Dubai Land Department.
Step 2: Choose and Approve a Trade Name
Unique and trade name compliance adherent names must be checked for religious or offensive terminology, must reflect the business activity, must be checked for availability using the DED portal, and adherence rules are checked within 1-2 days through a business setup consultant in Dubai.
Step 3: Obtain Initial DED Approval
To secure an initial approval, an application must be lodged with the DED, inclusive of:
- Completed application form.
- Shareholder passport copies.
- Business plan summary.
This step serves to confirm that your business entity has not been formed in violation of UAE regulations.
Step 4: Draft the Memorandum of Association (MOA)
The Memorandum of Association can be drafted detailing the following:
- Shareholder names and ownership, which must include a 51% local sponsor if required.
- Business activities and profit distribution.
- Management Structure.
- The MOA must be notarized through a Dubai Public Notary for legal validity.
Step 5: Arrange a Local Sponsor (If Required)
For strategic activities, you may engage a local sponsor (UAE national or entity) as a partner. Negotiate terms that allow you to retain operational control. As I learned during a friend’s partnership ordeal, a responsive and reliable sponsor is critical to avoid delays.
Step 6: Secure Office Space and Ejari Registration
Rent office space that is appropriate for your budget and market requirements. Register the lease with Ejari through the Dubai Land Department to receive an Ejari registration certificate, which is required for licensing.
Step 7: Apply for a Trade Licence
Submit to the DED:
- Trade licence fees, which vary by activity (details in the cost section).
- Trade name approval and initial approval certificate.
- Notarized MOA.
- Ejari registration certificate.
- Shareholder passport copies.
Step 8: Open a Corporate Bank Account
A corporate bank account can be opened with Emirates NBD or ADCB. The following is required:
- Trade licence
- MOA
- Ejari certificate
- Shareholder documents
This step supports smooth operational cash flow.
Step 9: Process Visas
For investors and employees, along with their families, apply for permits and IDs.
- Entry permit
- Medical fitness test
- Emirates ID application
- Residency stamping
Eligibility requirements vary with the size of the office space.
Step 10: Maintain Compliance
After setup, also ensure:
- Renewal of the trade licence is done annually.
- Registration for VAT is done if revenue surpasses AED 375,000.
- Compliance with UAE accounting standards for financial reporting.
- BUSINESS ZONES PRO can assist with these tasks.
2025 Cost Breakdown for LLC Setup in Dubai
“How much does it cost to set up an LLC in Dubai Mainland?” Costs range from AED 12,000 to AED 50,000 in 2025, depending on your business activity and setup needs. Here’s a detailed breakdown:
| Expense | Cost (AED) |
| Trade Name Registration | 1,000–2,500 |
| Initial DED Approval | 1,000–3,500 |
| MOA Notarization | 2,000–6,000 |
| Trade Licence Fees | 5,000–20,000 |
| Office Space Rental (Annual) | 10,000–60,000 |
| Local Sponsor Fees (Annual) | 5,000–20,000 (if needed) |
| Investor Visa (Per Person) | 4,000–6,000 |
| Employee Visa (Per Person) | 5,000–8,000 |
| Ejari Registration | 1,000–2,500 |
| Bank Account Setup | 0–2,500 |
Essential Documents for LLC Registration
To register your LLC in Dubai Mainland, gather:
- Passport copies of shareholders and managers.
- Visa copies (if UAE residents).
- Emirates ID copies.
- Passport-size photographs.
- Proof of residence (e.g., utility bill).
- Trade name approval certificate.
- Initial approval certificate from DED.
- Notarized MOA.
- Ejari registration certificate.
- No Objection Certificate (NOC) for employed shareholders.
- For corporate shareholders:
- Attested board resolution.
- Parent company’s trade licence, certificate of incorporation, and MOA.
A colleague avoided delays by using PRO services to organize documents, ensuring compliance with DED registration requirements.
Dubai Mainland LLC vs. Free Zone vs. Other Emirates
“How does a Dubai Mainland LLC compare to other options?” Here’s a detailed comparison:
| Feature | Dubai Mainland LLC | Free Zone LLC | Abu Dhabi Mainland LLC | Sharjah Mainland LLC |
| Market Access | UAE-wide and global | Free zone or global | UAE-wide and global | UAE-wide and global |
| Foreign Ownership | 100% for most activities | 100% | 100% for most activities | 100% for most activities |
| Office Location | Anywhere in Dubai | Free zone only | Anywhere in Abu Dhabi | Anywhere in Sharjah |
| Government Contracts | Eligible | Not eligible | Eligible | Eligible |
| Setup Costs | AED 12,000–50,000 | AED 10,000–30,000 | AED 10,000–40,000 | AED 8,000–35,000 |
| Visa Quotas | Unlimited (office-based) | Limited | Unlimited (office-based) | Unlimited (office-based) |
| Business Activities | 2,000+ activities | Restricted | 1,500+ activities | 1,000+ activities |
Dubai Mainland LLC excels for local market access and government contracts. Free Zone LLC suits international trade. Abu Dhabi offers lower costs for some industries, while Sharjah is budget-friendly but has fewer activity options. A tech startup I know chose Dubai for its strategic business hub status, while a manufacturing firm picked Sharjah for cost savings.
Compliance and Legal Requirements Post-Setup
After launching your LLC in Dubai Mainland, stay compliant with:
- Trade Licence Renewal: AED 5,000–20,000 annually via DED.
- VAT Registration: Required if revenue exceeds AED 375,000.
- Financial Reporting: Submit annual statements per UAE accounting standards.
- Visa Renewals: Renew every 2–3 years.
- Corporate Governance: Adhere to UAE Federal Law No. 2 of 2015 for transparency.
PRO services can handle renewals and filings, as I’ve seen with a friend’s retail LLC, which avoided fines by outsourcing compliance.
Industry-Specific Considerations for LLCs
Your business activity impacts setup requirements:
- E-commerce: Needs a commercial licence and compliance with UAE digital regulations.
- Hospitality: Requires a tourism licence and approvals from Dubai Tourism.
- Real Estate: Needs RERA approval and Dubai Land Department registration.
- Tech Startups: Benefits from business incubators and may need a professional licence.
- Manufacturing: Requires an industrial licence and a facility in an industrial zone.
FAQs on LLC Company Formation in Dubai
Q1: What is the cheapest way to start an LLC in UAE?
Opt for a professional licence and shared office space for as low as AED 12,000, including trade licence and one visa.
Q2: How long does LLC formation take in Dubai?
The LLC setup timeline in Dubai is 5–12 days, depending on approvals and document readiness.
Q3: What documents are needed for an LLC in Dubai?
You need passport copies, Emirates ID, MOA, Ejari registration, and trade name approval, among others.
Q4: Can I get a UAE Golden Visa with an LLC?
Yes, invest AED 2 million or more to qualify for a UAE Golden Visa (5–10 years).
Q5: What’s the difference between mainland and free zone LLC?
Mainland LLC offers UAE-wide trading and government contracts, while free zone LLC is limited to specific zones but has simpler setup.
Conclusion: Launch Your Dubai LLC Today
Starting an LLC in Dubai Mainland opens doors to a strategic business hub with tax exemptions, business scalability, and access to a UAE mainland market. By following these steps—selecting a business activity, securing a trade licence, and staying compliant—you can build a thriving business. Dubai’s economic diversification and investor protections make it a top choice for 2025. Ready to begin? Connect with a business setup consultant in Dubai or PRO services provider for a smooth UAE business setup. Take the first step today and turn your vision into reality!
