LLC Company Formation in Dubai Mainland | 2025 Comprehensive Guide  

  Establishing an LLC in Dubai Mainland is an excellent opportunity for any business owner wanting to enter an industry in one of the globe’s most interesting business locations. Dubai is strategically located, offers immediate access to business-friendly tax policies, and has flexible business regulations. With branches marked ExpandOption, one can apply for a Dubai Mainland LLC and enjoy unrestrained access for trading within the UAE and internationally, benefiting from the global business position of Dubai. Having gone through the entire UAE business setup myself, I have crafted a helpful and step-by-step, actionable guide to assist anyone wishing to get started. Answers to “What do I have to pay to get an LLC?, What is the cost involved? or What are the Advantages of a Mainland LLC? are all provided in this article. I encourage you to come along.

What is an LLC in the Dubai Mainland?

In Dubai Mainland, a Limited Liability Company (LLC) is an adaptable type of business entity that provides a mix of legal safeguards, operational freedom, and business flexibility. This type of business formation is very common in Dubai since it enables direct trade within and outside of Dubai. Unlike companies in free zones, a mainland LLC is able to operate without geographic restrictions, which is beneficial for businesses serving the local market or seeking to obtain government contracts. 

An LLC is able to have one to fifty shareholders and provides limited liability, which protects personal assets in the event that the business incurs debts. While some business activities still require a local sponsor (a UAE national holding 51% shares), the recent changes have benefited over 1,000 business activities, allowing for 100% foreign ownership, which is still uncommon in most jurisdictions. These factors, coupled with Dubai’s favorable business atmosphere, make LLCs very appealing to foreign investors.

Why Choose a Mainland LLC for Your Business Setup in Dubai?

The Dubai tourism sector is witnessing rapid growth, leading to an increase in economic activity and a surge in job opportunities in Dubai. Dubai is not only famous for its business activities but is also gaining recognition as an epicenter for tourism. This is why it is an ideal choice for emerging entrepreneurs.  

• Capturing the UAE market is possible since Mainland LLCs conduct business openly with the general public and other companies in the UAE, which is an advantage.  
• Increased business activities for small companies, as well as a welcome to overseas entrepreneurs with tax-free and profit-returning policies, is hardly an offer anyone can receive.  
• The spatial and economic position of Dubai, coupled with its well-defined policies, offers unrestricted possibilities to set up small to large-scale businesses.  
• The fact that Mainland LLCs offer to FDI companies stabled in Dubai allows the owners to obtain visas for their employees unrestricted.  
• With the freedom to engage in business with Dubai passed in 2020, owners can now bid for various government policies advantageous for small-scale businesses.

For instance, a retail business owner I know chose a mainland LLC to open stores across Dubai and Abu Dhabi, leveraging the ability to operate freely in the UAE. This flexibility, paired with corporate governance and a skilled workforce, makes Dubai a top destination for UAE business setup.

How to Set Up an LLC in Dubai Mainland: Step-by-Step Process

If you need to set up an LLC in the Dubai Mainland, make sure to follow these steps. I’ve outlined them to ensure it is easier to follow, based on my experience in assisting friends with business setups in Dubai.  

Step 1: Choose Your Business Activity  

Begin with selecting the particular business activity your LLC will focus on, in trading, consultancy, or manufacturing. The DED has a list of 2000+ approved activities. Some, like healthcare or education, may need additional approvals from the Dubai Municipality or the Ministry of Economy.  

Step 2: Reserve a Trade Name  

Creating a unique and relevant business name is crucial as it should comply with DED’s regulations on:  

• Religious or offensive terms.  
• Business alignment.  
• Duplication.  
• Take the submission name through the DED portal or a Dubai-based business setup consultant.  

Step 3: Secure Initial Approval from DED  

You may now apply for initial approval from DED, confirming your business activity and structure with your initial documents. Submit:  

• A filled-out DED application form.  
• Shareholder passport copies.  
• Drafted business outline and objectives.

Step 4: Drafting and Notarizing The Memorandum Of Association

• The Memorandum of Association (MOA) defines the LLC organizational framework and: 
• Details of the shareholders and the allocation of shares among them 
• The activities of the business and how the profits are shared.
• Management structure.
• MOA must be notarized by a public notary in Dubai. If a local sponsor is necessary, they will possess 51% shares; however, other agreements can be made to allow you to keep operational control. 

Step 5: Obtaining Local Sponsors 

For activities such as strategic business/corporate sectors, a local sponsor that is a UAE national or corporate entity is required. They will possess 51% of shares, but you can bargain for entire operational control. Ensure that the sponsor is reputable to avoid issues. 

Step 6: Obtain Ejari Registration and Lease Office Space 

A physical office is required for the mainland LLC to operate. Choose one within budget and close to the market. Register the lease within the Ejari system (Dubai Land Department) to obtain the Ejari registration certificate, which is key in licensing the business. 

Step 7: Trade Licence Application 

• All documents must be submitted to the DED for your trade licence: 
• Initial approval certificate
• Trade name reservation certificate
• Notarized MOA
• Ejari registration certificate
• Passport copies of shareholders
• Settlement of trade licence fee (further pricing details provided later)

Step 8: Setting Up a Corporate Bank Account

Upon receiving your trade license, set up a corporate bank account with either a local or international bank in Dubai. You need to present the following documents: 

• Trade license. 
• MOA. 
• Ejari certificate. 
• Shareholders’ passport copies. 
• The account will manage all business transactions, including payroll and payments to suppliers. 

Step 09: Apply for Corporate Visas

Apply for the investor and employee visas at the DED or any PRO services provider. The number of visas allocated will depend on the size of the office allocated. The process includes: 

• Entry permit application. 
• Medical fitness test. 
• Emirates ID application. 
• Residency stamping. 

Step 10: Maintaining Compliance 

• After the setup, ensure you maintain compliance by:
• Renewing the trade license every year. 
• If applicable, filing for VAT registration and tax returns. 

Keeping business records in line with the accounting requirements of the UAE.

Pro Tip: Partner with PRO services to streamline approvals, visa processing, and compliance. My friend saved weeks of hassle by using a consultant for his LLC setup.

Costs of LLC Company Formation in Dubai Mainland

Wondering, “How much does it cost to set up an LLC in Dubai?” The cost of LLC company formation in Dubai Mainland typically ranges from AED 12,000 to AED 40,000, depending on several factors. 

• Trade Name Registration: AED 1,000–2,000.
• Initial Approval from DED: AED 1,000–3,000.
• MOA Notarization: AED 2,000–5,000, depending on complexity.
• Trade Licence Fees: AED 5,000–15,000, varying by business activity.
• Office Space Rental: AED 10,000–50,000 annually, based on location and size.
• Local Sponsor Fees: AED 5,000–15,000 per year (if required).
• Visa Costs: AED 4,000–5,500 per investor visa, AED 5,000–7,000 per employee visa.
• Ejari Registration: AED 1,000–2,000.
• Corporate Bank Account Setup: Free to AED 2,000, depending on the bank.

A small consultancy LLC might cost around AED 20,000, including a modest office lease and one investor visa. A larger trading LLC with multiple visas and a premium office could hit AED 40,000. Business setup consultants in Dubai can provide tailored quotes to match your needs.

Timeline: The LLC setup timeline in Dubai typically takes 4–10 days, assuming all documents are ready. Delays may occur if additional approvals are needed for specific activities. 

Documents Required for LLC Formation in Dubai

To start an LLC in Dubai Mainland, you’ll need the following documents:

• Passport copies of all shareholders and managers.
• Visa copies of shareholders (if UAE residents).
• Emirates ID copies (if applicable).
• Passport-size photographs of shareholders and managers.
• Proof of residence (e.g., utility bill) for shareholders.
• Trade name approval certificate from DED.
• Initial approval certificate from DED.
• Memorandum of Association (MOA), notarized.
• Ejari registration certificate for office lease.
• No Objection Certificate (NOC) if a shareholder is employed in the UAE.
• For corporate shareholders:
• Board resolution, attested by the UAE embassy and the Ministry of Foreign Affairs.
• Parent company’s trade licence, certificate of incorporation, and MOA.

Tip: Work with PRO services to ensure all documents are correctly prepared. I once helped a colleague avoid delays by double-checking his MOA before submission.

Mainland vs. Free Zone LLC: Which is Right for You?

A common question is, “What is the difference between mainland and free zone LLC?” Here’s a comparison to help you decide:

Feature	Mainland LLC	Free Zone LLC
Market Access	Trade freely across UAE and globally	Limited to free zone or international trade
Foreign Ownership	100% for most activities, some need local sponsor	100% foreign ownership
Office Location	Anywhere in Dubai	Restricted to free zone
Government Contracts	Eligible to bid	Not eligible
Visa Quotas	Unlimited, based on office size	Limited by free zone rules
Business Activities	Over 2,000 activities	Restricted to free zone-approved activities
Tax Benefits	Zero corporate tax for small businesses	Zero corporate tax
Setup Costs	AED 12,000–40,000	AED 10,000–30,000

Mainland LLC is ideal if you want to target the UAE market or bid for government contracts. Free zone LLC suits businesses focused on international trade or specific industries like tech. For example, a catering business I know chose a mainland LLC to serve local clients, while a tech startup went for a free zone to save on initial costs.

Post-Registration Compliance for a Dubai Mainland LLC

After setting up your LLC in Dubai Mainland, ongoing compliance is key to staying operational:

• Trade Licence Renewal: Renew annually with the DED (AED 5,000–15,000).
• VAT Registration: Mandatory if your annual revenue exceeds AED 375,000. File returns regularly.
• Financial Reporting: Submit annual financial statements per UAE accounting standards.
• Visa Renewals: Renew investor and employee visas every 2–3 years.
• Corporate Governance: Maintain accurate records and comply with the UAE Commercial Companies Law.

Non-compliance can lead to fines or licence suspension. A PRO services provider can handle renewals and filings, saving you time. I’ve seen businesses avoid penalties by outsourcing compliance tasks to experts.

Industry-Specific LLC Requirements

Different industries have unique requirements for LLC company formation in the Dubai Mainland:

• Tech Startups: Need a professional licence and may require approvals from the Dubai Technology and Media Free Zone Authority for specific IT activities.
• Healthcare: Requires approvals from the Dubai Health Authority (DHA) and may need specialized facilities.
• Retail/Trading: A commercial licence is sufficient, but ensure compliance with import/export regulations.
• Manufacturing: Requires an industrial licence and a suitable facility in an industrial area.
• Consultancy: A professional licence suits consultants, with no local sponsor needed in most cases.

Frequently Asked Questions About LLC Formation in Dubai

Q1: How long does it take to set up an LLC in Dubai?

The LLC setup timeline in Dubai is typically 4–10 days, depending on document preparation and approvals. Complex activities (e.g., healthcare) may take longer.

Q2: What are the cheapest LLC setup options in the UAE?

A small mainland LLC with a basic professional licence and minimal office space can cost as little as AED 12,000. Opting for a shared office reduces costs further.

Q3: What documents do I need for an LLC in Dubai?

You’ll need passport copies, visa copies, Emirates ID, MOA, Ejari registration, and trade name approval. Corporate shareholders need additional attested documents.

Q4: Can I open a bank account for my LLC in Dubai?

Yes, after receiving your trade licence, you can open a corporate bank account with banks like Emirates NBD or HSBC. Provide your MOA, Ejari certificate, and shareholder documents.

Q5: Is a local sponsor mandatory for a mainland LLC?

No, 100% foreign ownership is allowed for most activities since 2020. Strategic sectors (e.g., oil and gas) still require a local sponsor holding 51% shares.

Q5: Can I get a UAE Golden Visa with an LLC?

Yes, investors in a mainland LLC may qualify for a UAE Golden Visa (5–10 years) if they meet investment thresholds, typically AED 2 million or more.

Conclusion: Start Your LLC Journey Today

Setting up an LLC in Dubai Mainland is a gateway to one of the world’s most vibrant business hubs. With 100% foreign ownership for most activities, tax benefits, and access to a skilled workforce, it’s no wonder entrepreneurs choose Dubai for company formation. By following the steps outlined choosing a business activity, securing a trade licence, and ensuring compliance you can establish a mainland LLC that thrives in the UAE’s business-friendly environment. Whether you’re launching a startup or expanding globally, Dubai offers unmatched opportunities.

Ready to start? Partner with a business setup consultant in Dubai or a PRO services provider to streamline your UAE business setup. Contact a trusted expert today for a free consultation and take the first step toward your business success!