Download our free investment guide and start your journey with our trusted financial advisor!
Download for Free investment guide and start your journey with our trusted financial advisor!
How to Register an LLC in UAE in 2025 – Complete Steps, Costs, and Benefits
-
AUTHOR shreya
- Date
The United Arab Emirates (UAE) has long been a destination for entrepreneurs looking to launch businesses in a tax-friendly and fast-growing environment. Among the various company structures available, forming an LLC in the UAE is the most popular option for local and international investors.
But how do you register one? What are the costs involved? Are there options for a free LLC in UAE?
In this blog, we break down the entire process—step-by-step. You’ll also learn about the benefits of an LLC company in UAE, cost breakdowns, and tips for a smooth business launch in 2025.
What is an LLC in UAE?
An LLC, or limited liability company, is a legal business structure where the liability of the shareholders is limited to their shares in the capital. This structure is ideal for a wide range of commercial activities and offers flexibility, especially for foreign investors.
LLCs can be set up in both the mainland and designated free zones, each offering specific advantages. The company must have between 1 and 50 shareholders, and although the UAE once required a local sponsor for mainland LLCs, foreign investors can now own 100% of the company in most sectors.
Benefits of LLC company in UAE
Before diving into the process, it’s important to understand why the LLC model is so popular. Here are the key benefits of an LLC company in UAE:
- Full operational freedom: Mainland LLCs can trade anywhere in the UAE without restrictions.
- Limited liability protection: Owners are only liable up to the amount they invested.
- Access to government contracts: Only mainland LLCs can bid on UAE government tenders.
- Tax advantages: The UAE offers zero personal income tax and only a 9% corporate tax on profits over AED 375,000.
- Easy visa process: LLC owners and employees can obtain long-term residency visas.
- Diverse business activities: You can choose from thousands of activities across different sectors.
Step-by-step LLC registration process
Forming an LLC in the UAE involves several legal steps and approvals. Here is a simplified guide for 2025:
1. Choose your business activity
The first step is selecting your business activity from the list approved by the UAE government. This will influence your license type and determine the required permits.
2. Select a company name
The trade name must be unique, align with your activity, and follow naming guidelines (no offensive or religious terms, no abbreviations unless legally justified).
3. Decide on jurisdiction: mainland vs. free zone
- Mainland: Full access to local markets, ability to work with government contracts.
- Free zone: 100% foreign ownership, but may require a local distributor to operate in the mainland.
4. Submit documents for initial approval
Prepare and submit the required documents:
- Passport copies of shareholders and managers
- Trade name reservation
- Application form
- Description of business activity
5. Draft and notarize the Memorandum of Association (MOA)
The MOA outlines the ownership structure and management of the company. It must be notarized in the UAE.
6. Rent office space and register tenancy (Ejari)
For LLC company formation in Dubai, having a physical office is mandatory. You’ll need a tenancy contract registered with Ejari.
7. Obtain your trade license
Once the documents are approved, your license will be issued. This is the final legal step before you can start operations.
8. Apply for corporate bank account and visas
After licensing, you can open a corporate bank account and begin applying for investor and employee visas.
LLC registration in UAE cost breakdown
The LLC registration in UAE cost can vary depending on your business activity, emirate, and whether you’re setting up in a free zone or mainland. Here’s an estimate for 2025:
| Item | Estimated Cost (AED) |
|---|---|
| Trade license | 10,000 – 50,000 |
| Initial approval & name reservation | 1,000 – 3,000 |
| MOA notarization & legal translation | 2,000 – 5,000 |
| Office rent and Ejari | Varies by location |
| Immigration card & visa setup | 3,000 – 6,000 per visa |
| Total Estimate | 20,000 – 60,000+ |
Keep in mind, that the Dubai LLC company registration cost can be higher in premium locations or for highly regulated sectors (e.g., healthcare or education).
Free LLC in UAE – what does it mean?
The term free LLC in UAE is often misunderstood. While the government does offer incentives for startups, such as discounted license packages or fee waivers in certain free zones, you will still incur some expenses (e.g., visa fees, and office space).
Some free zones offer:
- 0% registration fees for the first year
- Virtual office options
- Shared workspace packages
However, these are usually for small-scale or service-based companies and do not apply to every business activity. Always read the fine print or consult a professional before assuming it’s truly “free.”
Tips for successful LLC company formation in Dubai
- Work with a consultant: Navigating the regulations on your own can be time-consuming. A consultant can help ensure paperwork is correct and deadlines are met.
- Keep your business plan clear: A clear plan helps in banking, visa processing, and even choosing the right license.
- Check the Dubai LLC company list: Review existing companies in your sector to find out what’s working—and how to stand out.
Conclusion
Launching an LLC in UAE in 2025 remains one of the most strategic moves for entrepreneurs and investors aiming to access the Middle East, Africa, and Asia markets.
From tax efficiency to operational flexibility, the benefits of LLC companies in the UAE make it an attractive option for startups and established businesses alike
Whether you’re looking for cost-effective options through a free LLC in UAE offer, or you’re ready to invest fully in a mainland setup, the UAE offers something for everyone. With a clear understanding of the LLC registration in UAE cost, a step-by-step approach, and proper professional guidance, your business can be operational in just a few weeks.
The opportunity is real—Dubai’s business landscape is ready. Are you?
Get an Expert consultation
CEO and Real Estate Expert
These articles could be
interesting for you
