Thinking of starting a business in the UAE? You’re not alone. The UAE registered 77,000+ new businesses in 2023 (Gulf News), highlighting its global business appeal. If you’re looking to register LLC, now is the perfect time—business licenses surged by 16.5% in 2024 , making the UAE a prime destination for entrepreneurs.
But how do you register LLC in the UAE? What are the costs, required documents, and licenses? This step-by-step guide answers all your questions and breaks down the 11 simple steps to help you start your business with ease.
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How to Register LLC in UAE: 11 Simple Steps
Thinking of Starting a Business in the UAE? Here’s What You Need to Know
The UAE is one of the most business-friendly destinations, attracting investors from around the world. With 100% foreign ownership, zero corporate tax in many sectors, and a strategic location, setting up a Limited Liability Company (LLC) is a smart move. But how do you register LLC in the UAE?
This guide breaks it down into 11 simple steps, ensuring a smooth, hassle-free registration process. Whether you’re an entrepreneur or a company expanding to the UAE, follow these steps to get started.
Step-by-Step Guide to LLC Registration in UAE
Define Your Business Activity
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- Choose from over 2,000 approved activities (commercial, industrial, professional).
- Some activities require extra government approvals.
Select Mainland or Free Zone Setup
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- Mainland LLC: Trade freely in the UAE & internationally, allows government contracts.
- Free Zone LLC: 100% foreign ownership, tax benefits, but may have trade restrictions.
Pick & Register a Trade Name
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- Must follow UAE regulations and be unique.
- Apply through the Department of Economic Development (DED) or Free Zone Authority.
Obtain Initial Approval
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- Submit business details and documents for pre-approval.
- Some activities need sector-specific licenses (e.g., medical, legal, banking).
Draft & Notarize the Memorandum of Association (MOA)
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- Defines ownership, profit-sharing, and management roles.
- Notarization is required for legal recognition.
Secure a Business Location
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- Mainland businesses must have a physical office.
- Free Zones offer flexible workspaces or virtual offices.
- Ejari registration (Dubai) or tenancy contract (other Emirates) is mandatory.
Apply for a Business License
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- Choose the right license type based on your activity:
- Commercial: Trade, import/export, retail.
- Industrial: Manufacturing, production, assembly.
- Professional: Consulting, healthcare, IT services.
- Tourism: Hotels, travel agencies, tour operators.
- Choose the right license type based on your activity:
Register for VAT (If Required)
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- Companies that make more than AED 375,000 a year are required to register for VAT.
- Use VAT number check UAE to verify compliance.
Open a Business Bank Account
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- Submit company documents for bank approval.
- Some banks require a minimum balance for business accounts.
Obtain Employee Visas & Work Permits
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- Visa quotas depend on business size and office space.
- Wage Protection System (WPS) compliance is required.
Receive Final Approvals & Trade License
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- Submit final documents for official business registration.
- Receive the trade license and start operations.
Ready to Start Your Business in the UAE? Take Action Now!
Registering an LLC in the UAE can be quick and hassle-free when you follow the right steps. But missing any detail can lead to delays or extra costs.
Why go through the process alone? Let Business Link UAE handle everything for you—from legal paperwork to approvals and VAT registration.
How Much Does It Cost to Register LLC in UAE? [2025 Guide]
The UAE is a top destination for entrepreneurs due to its 100% foreign ownership, zero corporate tax in many sectors, and business-friendly policies. But how much does it cost to register LLC in the UAE?
This step-by-step guide provides a detailed cost breakdown, covering trade license fees, office rental, government approvals, and post-registration expenses. Whether you’re setting up a mainland or free zone business, this guide ensures you have a clear budget before launching your company.
Cost Breakdown of Registering an LLC in UAE
| Fee Type | Estimated Cost (AED) | Notes |
| Trade License Fees | 10,000 – 50,000 | Varies by business activity & Emirate |
| Initial Approval Fees | 1,000 – 3,000 | Required for business setup |
| DED Registration Fees | 3,000 – 10,000 | Covers the business registration process |
| Chamber of Commerce Fees | 1,000 – 5,000 | Mandatory for certain businesses |
| Ejari Registration (Dubai) | 215 | Required for tenancy contracts |
| MOA Notarization & Attestation | 2,000 – 5,000 | Fees depend on document complexity |
| Sector-Specific Approval Fees | Varies | Some businesses need extra approvals |
| VAT Registration | Free | Required if revenue exceeds AED 375,000 |
| Corporate Bank Account Setup | 5,000 – 10,000 | Varies by bank |
| Employee Visa Costs | 3,000 – 6,000 per visa | Includes medical test & Emirates ID |
Dubai and Abu Dhabi generally have higher registration costs compared to other Emirates.
Free Zone vs. Mainland LLC: Which One is Cheaper?
| Factor | Mainland LLC | Free Zone LLC |
| Foreign Ownership | Up to 100% (varies by sector) | 100% |
| Market Access | UAE-wide trade | Restricted to the free zone unless a local distributor is used |
| Office Requirement | Physical office lease required | Flexible workspace options |
| Trade License Fees | 10,000 – 30,000+ | Starting from 5,750 |
| VAT & Customs Duties | Required | May be exempt, depending on trade activities |
If your business doesn’t require UAE-wide trade, a free zone company can be a cheaper alternative with lower upfront costs.
Post-Registration Costs & Annual Renewals
Even after registering your LLC, there are ongoing costs to maintain compliance and keep your business active.
- Trade License Renewal: AED 10,000 – 50,000 annually
- VAT Filing & Corporate Tax Compliance: Ongoing costs based on revenue
- Dubai Customs Registration: AED 100 + AED 20 admin fee
- EmaraTax Corporate Tax Registration: Mandatory for most businesses
Trade licenses must be renewed every year. Failure to renew on time results in penalties or business suspension.
What Are the 8 LLC Licenses in UAE? Find Out Now
Setting up an LLC in the UAE can be overwhelming, with multiple approvals, document attestations, and ongoing compliance requirements.
Instead of wasting time on paperwork, let Business Link UAE handle your LLC registration, VAT compliance, and banking setup—so you can focus on growing your business.
When you register LLC in the UAE, choosing the right business license is crucial. The UAE offers different licenses based on the nature of business activities. Your choice determines ownership rights, operational scope, and compliance requirements.
This guide provides a detailed breakdown of the available licenses, helping you make an informed decision before setting up your company.
1. Commercial License
- Required for trading, import, and export businesses.
- Covers retail, e-commerce, real estate, and logistics.
- Allows companies to conduct local and international trade.
- Can be issued in mainland UAE or free zones.
2. Professional License
- Ideal for consultants, service providers, and freelancers.
- Suitable for IT consultants, legal firms, marketing agencies, and healthcare professionals.
- Allows 100% foreign ownership in most cases.
- May need approval from sector-specific authorities.
3. Industrial License
- Needed for manufacturing, production, and assembly businesses.
- Covers factories, food processing units, and construction material production.
- Requires a warehouse or industrial facility.
- Must comply with safety and environmental laws.
4. Tourism License
- Mandatory for hotels, travel agencies, and tour operators.
- Needed for businesses providing holiday packages, tourism services, and visa assistance.
- Regulated by tourism authorities in each Emirate.
- Businesses must meet tourism and safety regulations.
5. Agricultural License
- Required for farming, livestock, and organic food production.
- Includes crop farming, hydroponics, and fisheries.
- Businesses must secure government approvals based on location.
6. Media License (Free Zones Only)
- Designed for advertising agencies, content creators, influencers, and publishing businesses.
- Available in Dubai Media City, Abu Dhabi Twofour54, and Sharjah Media City.
- Offers 100% foreign ownership with flexible office options.
7. Craftsmanship License
- For skilled professionals like carpenters, plumbers, and electricians.
- Required for small workshops and trade-related businesses.
- Must follow industry safety standards.
8. Freelance Permit (Free Zones Only)
- Ideal for independent professionals in IT, media, design, and consulting.
- No need for a physical office in most free zones.
- Available in Dubai, Abu Dhabi, and other Emirates.
How to Choose the Right License?
- A commercial license is best for trade and retail businesses.
- A professional license is for service providers, consultants, and freelancers.
- Production and manufacturing require an industrial license..
- A tourism license is a must for travel-related businesses.
- Free zones offer cost-effective solutions for freelancers and media businesses.
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Choosing the correct license when you register a business in the UAE ensures compliance, smooth operations, and cost efficiency. Each license type has different requirements, fees, and approval processes.
Before applying, consult the Department of Economic Development (DED) or relevant free zone authorities for the latest regulations.
What Documents Do You Need to Register LLC in UAE?
Setting up an LLC in the UAE requires proper documentation. Submitting the correct paperwork speeds up the process and prevents delays. Whether you choose a mainland or free zone setup, having the right documents is essential. Below is a complete checklist to help you register LLC.
Essential Documents for LLC Registration
Passport Copies
- Required for all shareholders and managers.
- Must last for a minimum of six months.
Visa & Emirates ID (If Applicable)
- UAE residents must provide a valid Emirates ID.
- Foreign investors need a UAE entry stamp or visit visa.
Trade Name Reservation Certificate
- Confirm that your business name is approved.
- issued by the Department of Economic Development (DED) or the free zone authority.
Initial Approval Certificate
- Official confirmation that the government has no objections to your business.
- Mandatory before proceeding with the next registration steps.
Memorandum of Association (MOA)
- MOA Defines company ownership, business activities, and capital share.
- A UAE public notary is required to notarize it.
Tenancy Contract (Ejari for Dubai Businesses)
- Confirms that your business has a physical office or workspace.
- Must be registered with relevant municipal authorities.
No Objection Certificate (NOC) (If Required)
- NOC Needed if a shareholder is employed by another UAE company.
- Must be issued by the current employer.
Power of Attorney (If Applicable)
- Required if a legal representative submits documents on your behalf.
- Must be notarized and attested.
Bank Reference Letter (If Required)
- Some Emirates require a financial reference for verification.
- Ensures business credibility and financial stability.
Additional Documents Based on Business Activity
Industry-Specific Approvals (Some businesses require extra clearance from regulators)
- Healthcare – Ministry of Health
- Finance – Central Bank
- Education – KHDA
- Real Estate – RERA
Chamber of Commerce Registration
- Required for trade-related businesses.
- Provides access to networking and trade benefits.
Customs Registration (For Import/Export Businesses)
- Mandatory for businesses dealing with international trade.
- Register with Dubai Customs or the relevant Emirate’s customs authority.
Proof of Share Capital Deposit (If Required)
- Some free zones require businesses to deposit a minimum share capital.
- The amount varies based on the business type and jurisdiction.
Final Steps
- Submit all required documents to the Department of Economic Development (DED) or the Free Zone Authority.
- Wait for document verification and approval.
- Receive your trade license and start operations.
Each Emirate has specific registration rules, so always check with local authorities before applying. Proper documentation ensures a smooth and hassle-free business setup.
Why Register LLC in UAE? 9 Key Benefits You Must Know
The UAE is one of the world’s leading business hubs, attracting entrepreneurs with its tax-friendly policies, strategic location, and investor-friendly regulations. If you want to register LLC in Dubai, Abu Dhabi, or a Free Zone, this structure offers strong legal protection, tax benefits, and full foreign ownership. Here’s why an LLC is the best choice for business growth.
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Limited Liability Protection
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- Business owners are only liable for their investments.
- Personal assets remain safe from business debts.
- The company is a separate legal entity that can own assets and enter contracts.
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Zero Personal & Low Corporate Taxes
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- No personal income tax on business profits.
- 0% corporate tax for businesses earning up to AED 375,000 annually.
- For profits beyond AED 375,000, the corporate tax rate is 9%.
- Free Zones offers 0% corporate tax for qualifying businesses.
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100% Foreign Ownership (No Local Sponsor Needed)
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- Foreign investors can fully own an LLC in most industries.
- No requirement for an Emirati shareholder in approved sectors.
- Full control over operations, profits, and decision-making.
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Flexible Business Activities
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- LLCs can engage in trading, manufacturing, services, and consulting.
- Mainland LLCs can operate across the entire UAE and work with the government.
- Free Zone LLCs enjoy tax exemptions and simplified regulations.
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Global Market Access & Government Contracts
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- LLCs in the UAE have direct access to over 10 million consumers.
- Companies can bid for UAE government projects.
- The strategic location connects businesses to Asia, Europe, and Africa.
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Fast & Easy Business Setup Process
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- No unnecessary paperwork or long approval times.
- Online applications for trade licenses, visas, and bank accounts.
- Registration is usually completed within 5-7 days.
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Business-Friendly Banking & Financial System
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- Access to top UAE and international banks for corporate accounts.
- No currency restrictions for global transactions.
- Secure online banking and business-friendly financial services.
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Strong Legal & Regulatory Protection
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- UAE laws protect investors and company assets.
- Intellectual property (IP) rights ensure business security.
- Arbitration services provide quick dispute resolution for business conflicts.
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World-Class Infrastructure & Skilled Workforce
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- The UAE has state-of-the-art ports, airports, and logistics hubs.
- The advanced digital infrastructure supports tech startups and e-commerce.
- Access to a highly skilled workforce from over 200 nationalities.
UAE LLC vs. Free Zone LLC: Tax & Ownership Comparison
| Feature | Mainland LLC | Free Zone LLC | Qualified Free Zone LLC |
| Corporate Tax | 0% (up to AED 375,000); 9% (above) | 0% on qualifying income, 9% on non-qualifying | 0% on qualifying activities |
| VAT | 5% (on most goods & services) | 5% (on most goods & services) | 5% (on most goods & services) |
| Personal Tax | 0% | 0% | 0% |
| Capital Gains Tax | 0% (generally) | 0% (generally) | 0% (generally) |
| Ownership | 100% for most sectors | 100% foreign ownership | 100% foreign ownership |
| Market Access | UAE-wide trade | Restricted to Free Zone unless the local distributor is used | 0% tax for specific business activities |
| Import/Export Duties | Applicable | Often exempt | Often exempt |
Free Zone businesses must meet Qualified Free Zone Person (QFZP) conditions to qualify for 0% corporate tax.
When you register LLC in the UAE, you gain legal protection, tax benefits, and full market access. Whether you choose a mainland or free zone setup, the UAE provides a business-friendly environment with low taxes and global trade opportunities. Before setting up, check the latest regulations based on your business activity and location. A well-planned LLC setup ensures long-term success.
What Are the Ongoing Compliance Requirements for an LLC in UAE?
To keep your LLC compliant and avoid fines, you must meet these key requirements:
- Trade License Renewal: Annually required to continue operations.
- VAT Registration & Tax Filings: Quarterly reports if applicable.
- Financial Statement Submission: Mandatory for audits.
- Employee Visa & WPS Compliance: Ensure timely renewals.
- Health Insurance: Required in some Emirates.
- ESR Reporting: Needed for relevant businesses.
Staying compliant prevents penalties and business disruptions.
How Long Does It Take to Register LLC in UAE?
The registration timeline varies based on business type and required approvals:
- Mainland LLC: Typically 7 – 14 days, depending on government processing.
- Free Zone LLC: Faster setup, usually 3 – 10 days with fewer approvals.
- Special Approvals: Some industries, like healthcare or finance, may take longer.
Planning ahead and ensuring all documents are ready helps speed up the process and avoids unnecessary delays.
What Happens If I Don’t Renew My LLC License on Time?
Failing to renew your LLC license can lead to serious consequences:
- Late Penalties: Fines start from AED 200 per month and increase over time.
- Business Suspension: Your company may be restricted from operating.
- Legal Issues: Risk of additional fines, blacklisting, or license cancellation.
Renewing is simple and can be done online through government portals or with expert assistance to avoid delays.
The Summary
Ready to Register LLC in UAE? Take Action Now! Now that you know the 11 steps and costs, it’s time to start your business in the UAE. With zero corporate tax in many sectors and 100% foreign ownership, there’s no better time to move forward. Don’t waste time on complicated paperwork—Business Link makes the process smooth and stress-free. Let experts handle your registration while you focus on growing your business. Take the first step by getting in touch with Business Link right now!
FAQ’s
Can I Sponsor Employees After Registering LLC in UAE?
Yes, after you register LLC in the UAE, you can sponsor employees under your company. The process includes:
- Obtaining an Establishment Card from the UAE Immigration Department
- Applying for Employee Visas, including work permits and residence visas
- Issuing Labor Contracts in compliance with UAE labor laws
The number of visas allowed depends on your office space, business activity, and quota limits set by the authorities. Ensure compliance for smooth approvals.
Do I Need a Physical Office to Register LLC in UAE?
Yes, a physical office is mandatory for mainland LLCs in the UAE. The Department of Economic Development (DED) requires a minimum office space for licensing and visa approvals.
For Free Zones, businesses have flexible options:
- Shared Desks: Cost-effective for startups
- Virtual Offices: Ideal for remote operations
- Private Offices: Suitable for larger teams
Your choice depends on business activity, visa needs, and legal requirements. Always check with authorities for compliance.
Can a Foreigner Own 100% of an LLC in UAE?
Foreign investors can now own 100% of an LLC in most sectors under UAE’s new foreign ownership laws. However, some industries, like oil, gas, and banking, still require a local sponsor.
In Free Zones, 100% ownership is guaranteed across all business types, offering tax benefits and full profit repatriation. Always check sector-specific rules with UAE authorities to ensure compliance before setting up your business.
