When planning to establish a Limited Liability Company (LLC) in Dubai, understanding the minimum capital requirements is crucial. Dubai’s LLC structure is popular due to its flexibility, affordability, and accessibility for foreign investors. This blog will break down the essential details of LLC capital requirements, how they impact Dubai LLC company formation cost, and what you need to know about LLC company formation in UAE.
A Limited Liability Company (LLC) is one of the most common business structures in Dubai. It allows investors to conduct commercial, industrial, and professional activities while enjoying limited liability protection. LLCs require at least two and a maximum of 50 shareholders, with liability limited to their shares in the company.
Why Choose an LLC for Your Business?
- Wide Range of Activities: LLCs can operate in almost all industries except certain restricted sectors.
- Local Market Access: Unlike free zone companies, LLCs can trade freely within the UAE market.
- Profit Distribution: There’s flexibility in profit-sharing ratios, even if a local partner holds 51% shares.
- Affordable Setup Costs: LLC formation is more cost-effective compared to other structures.
Minimum Capital Requirements for LLC in Dubai
Dubai does not enforce a strict minimum capital requirement for LLCs. However, businesses must declare an appropriate amount of capital in their Memorandum of Association (MoA). The declared capital is typically symbolic and does not require physical deposit unless specified.
Some industries or activities may require higher capital depending on the regulations of the Department of Economic Development (DED).
Dubai LLC Company Formation Cost Breakdown
Here’s an approximate breakdown of costs for Dubai LLC company formation:
Expense | Estimated Cost (AED) |
Trade License Fee | 10,000 – 30,000 |
Local Sponsor Fee | 10,000 – 25,000 annually |
MoA Drafting and Attestation | 2,000 – 5,000 |
Office Space Rental | 15,000 – 50,000 annually |
Visa Fees (per visa) | 3,000 – 7,000 |
The actual Dubai LLC company formation cost will vary based on factors such as business activity, location, and the number of visas required.
Steps for LLC Company Formation in UAE
Step 1: Choose a Business Activity
Select the activity to determine the type of license required.
Step 2: Find a Local Sponsor
An Emirati national must hold 51% shares in the LLC as per UAE law.
Step 3: Obtain Initial Approvals
Secure approvals from the DED and other relevant authorities.
Step 4: Draft and Attest MoA
The Memorandum of Association outlines the company’s shareholding structure and capital.
Step 5: Register the Company
Submit the required documents and complete the registration process with the DED.
Step 6: Apply for Visas
Apply for employee and investor visas as needed.
How Raes Associates Can Help
Navigating the requirements for LLC company formation in UAE can be overwhelming without the right guidance. Raes Associates offers end-to-end support, including:
- Assessing the appropriate capital structure for your business.
- Drafting and attesting legal documents like the MoA.
- Coordinating with local sponsors and stakeholders.
- Handling trade license applications and approvals.
With years of experience in assisting entrepreneurs, Raes Associates ensures a seamless and cost-effective setup process tailored to your needs.
Contact Raes Associates today to learn more about LLC formation in Dubai and start your business journey with confidence. We’re here to simplify the process so you can focus on growing your business!