DubaiStep-by-Step Guide to LLC Company Formation in Dubai

August 18, 2023by Tetra Consultants0
  • A limited liability company is one of the common forms of business which is executed in Dubai at large. The LLC company formation in Dubai consists of a minimum of 2 to a maximum of 50 shareholders who will be sharing limited liability according to their shares in the company. The company law in Dubai offers full protection to the shareholders of the limited company from liabilities. The process to register company in Dubai in the form of Limited Liability Company (LLC) starts through the identification of core activities. For the LLC company setup in Dubai, enitity must have a local sponsor who must hold 51% of the company share. 
  • The licences and all other regulatory requirements for the LLC company formation in Dubai are met by Department of Economic Development (DED) which is a government agency. DED agency is entitled to manage all the economic activities of the state along with granting a licence to the LLC company formation in Dubai. As discussed before, for an LLC company setup in Dubai 51% of company shares or ownership by the local sponsor must be UAE national. The reliable local sponsor can help LLC to grow and also to provide 100% managerial and operational ownership without anyone’s interference. 
  • For setting up an LLC in Dubai Tetra Consultants can help you with the hassle-free registration process along with other business needs such as providing hassle-free Dubai company incorporation process, obtaining the trade licences in Dubai free zones, provision of Dubai accounting and Tax services, and other ancillary services. These are the important aspects of executing business in Dubai which are needed to be complied with for successful execution. 

Step by Step guide for LLC company formation

Ensuring and complying with all the legal obligations, rules and regulations of the Dubai State LLC need to comply with the UAE government laws and regulations before, after and during the commencement of the company. The steps which are needed to be followed are as follows: 

Step 1: Determining the company’s core activities

  • It involves choosing those business activities in which the LLC would deal. The determination of such activities helps in clarifying and specifying the core requirements of the business activities. It also helps in ensuring compliance with legal obligations which specific industries must follow.

Step 2: Reserve a Trade Name

  • It involves reserving a name for the business. The use of any name in the state ensures that the name reserved is not breaching any conventional law of the UAE. The name of the business is an important aspect of the business and thus needs extra emphasis while deciding the name of the business. During this, a consultancy may help you to identify the perfect name for the business. 

Step 3: Determining the business location

  • For finalizing the business location some initial approvals of authorities are needed such as certification from Dubai’s Department of Economic Development (DED). This certification can only be provided after the approval of the business name. 

Step 4: Obtaining pre-approvals: 

  • For the registration of an LLC in Dubai the company requires to complete various documents such as Logistics Support Agreement (LSA) agreement and Memorandum of Assosiation (MoA). These documents are necessary for Legal compliance. These documents are engraved with the company objects, the capital. Place of business, liability, and other clauses helps in determining the company’s activity. These documents must be notarized and must be drafted within the framework laid down in MoA. 

Step 5: Application for initial approvals

  • The process includes the application to the registrar along with the documents drafted and notarized for the validation and examination of them. In this step, the registrar checks and examine the documents and application after which the certificate of incorporation is provided. With the issuance of the incorporation certificate to the company, the company gains legal status in UAE and also enables the members to hold interest limited to their shareholding or share in the equity of the company.

Step 6: Obtaining other government approvals

  • If the company is funded through Foreign direct investment then pre-approval from the governmental authorities is needed to be obtained for transfer of funds. The approval is based on various factors such as the nature and size of the business, the industry of the business, and the foreign exchange laws, if present at that time. Along with this approval from the sectorial regulator, Dubai Finanial Services Authority (DFSA) is also required.   

Step 7: Corporate bank account opening 

  • On the approval from the registrar and receiving of the incorporation certificate, A LLC needs to open a corporate bank account in a well-established financial corporate along with other domestic financial corporates. Tetra Consultants can help you with this process by opening your bank account or corporate bank account opening without any hassle. 

Step 8: VAT registration

  • The Dubai state imposes compulsory VAT registration by the manufacturers of the goods and services through the EmaraTax Portal. The VAT registration is compulsory to be submitted within 30 days of the registration application to the Federal Tax Authority in Dubai. Tetra Consultants can also help you with applying for various offshore financial licenses without any participation by the individual.  


  • The LLC company formation in Dubai is building entrepreneurs and investors who want assurance of their investments. The LLC company setup in Dubai is an affordable and attractive structure that attracts many entrepreneurs and establishments because of its cost-effective company model in Dubai. Along with the cost-effective model, the LLC also limits the liability of the investment making it a preferred option for investors. Further, the Dubai model allows a wide range of business activity to operate in the LLC which helps entrepreneurs and investors to invest in a wide range of industries. Altogether it can be seen that the LLC company formation in Dubai is a safe and effective option to commence the business and also for investing. 
  • Moreover, the Tetra Consultants can help you with the registration and various licensing for the setting up of an LLC company in Dubai with the help of our dedicated team. Our consultancy is filled with dedicated staff who can help you with compliance with legal obligations and obtaining of license. So what are you waiting for? Contact us to know more about the LLC company formation in Dubai and its setting up procedure. We can help you with various other aspects of business which are important while facilitating you with the registration of your company.  

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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