Limited Liability Companies

An LLC (Limited Liability Company) is one of the most common business structures in the UAE. It provides limited liability protection to its shareholders, meaning personal assets are generally protected from business debts and obligations. 

It’s suitable for businesses that wish to trade in the UAE mainland and engage with local customers, suppliers, and governmental bodies

• Historically, mainland LLCs required a local sponsor or partner (often holding 51 %) for “strategic” or restricted activities. 

• However, more recent amendments now allow 100% foreign ownership in many sectors and for many commercial activities in the mainland. 

• Some business activities may still require a local sponsor or a UAE national partner under certain regulatory or “strategic” lists. 

• In free zones, companies are often allowed full foreign ownership by default. 

Key requirements typically include:

• Shareholders: Minimum of 1 (or often 2) and up to 50 shareholders in many emirates.

• Manager(s): Must appoint at least one manager (sometimes up to 5) to run the company. 

• Trade name & business activity: You must select a permissible name and choose permitted activity(ies).

• Physical address / office space: Mainland LLCs must maintain a physical address (lease or owned premises). 

• No minimum share capital (in many cases): There is generally no mandatory minimum share capital for LLCs now under the UAE Commercial Companies Law. 

• Licensing & approvals: Approvals from relevant authorities depending on the business activity, issuance of trade license, and registration with Department of Economic Development (or local equivalent). 

• Documentation: Passport copies, proof of address, signatures, Memorandum of Association / Articles, lease agreement, etc. 

The cost varies significantly based on location, license type, business activity, office space, and number of visas needed. 

• In Dubai, LLC setup costs typically fall between AED 20,000 to AED 30,000, depending on the nature of your business and service provider fees.

• Additional costs may include license fees, registration fees, trade name reservation, approvals, and office lease. 

After incorporation, an LLC must satisfy ongoing requirements such as:

• Annual financial statements and audit: Prepare and file audited accounts per UAE accounting standards. 

• License renewal: Licenses are usually valid for one year and must be renewed annually.

• Tax obligations:

  • Corporate tax: As of recent tax reforms, LLCs with taxable income exceeding AED 375,000 are subject to 9% corporate tax. 

  • VAT: If the company’s revenue or business activity meets certain thresholds, registration for VAT and periodic filing may be required. 

• Record keeping: Maintain proper accounting records, receipts, invoices, etc. 

• Corporate governance: Holding board/manager meetings, updating the MoA if changes occur, registering changes with authorities. 

Yes — in many cases you can re-domicile, reclassify, or restructure an existing company (for example, from a free zone or offshore entity) into a mainland LLC, subject to regulatory approval and compliance with applicable laws. 

However, the process involves legal, regulatory, and tax implications, so professional assistance is typically needed.

No — you don’t necessarily need to live in the UAE to set up an LLC. Foreign investors and non-residents can establish and own companies.

That said, to manage operations, bank account signatories, visa sponsorship, and local formalities, having a UAE-based representative or local address may be necessary.