How to Set Up an LLC Company in the UAE: Complete 2026 Guide

A Limited Liability Company (LLC) is the most common mainland business structure in the UAE. It gives you a commercial trade licence, the right to trade directly with customers across any emirate, and the ability to apply for employee visas without freezone restrictions.

If you are choosing between mainland and freezone, an LLC makes sense when you need to serve the local UAE market directly — selling to UAE consumers, working with government contracts, or operating physical retail. Freezone companies face restrictions on trading inside the UAE mainland without a local distributor.

This guide walks you through every step of setting up a mainland LLC in 2026, including costs, timelines, and what paperwork you will need.

What Is a UAE LLC?

An LLC in the UAE is a mainland company registered with the Department of Economic Development (DED) in the emirate where you want to operate. It is a separate legal entity from its owners, which means personal liability is limited to your share capital contribution.

Key characteristics of a UAE LLC:

• Shareholders: 1 to 50 shareholders (individuals or corporate entities)
• Ownership: 100 percent foreign ownership is now permitted for most business activities (changed from the old 51-49 split that required a UAE national sponsor)
• Minimum share capital: No fixed minimum for most activities, though banks may require AED 50,000 to AED 300,000 to open a corporate account
• Registered office: You need a physical office address in the emirate of registration (Ejari tenancy contract required)
• Management: Managed by one or more managers appointed in the Memorandum of Association

Before You Start: Choose Your Business Activity

Your LLC licence is tied to a specific business activity. The DED maintains a published list of approved activities. You must select the activity that most closely matches what your business does.

Common LLC business activities include:

• General trading
• Professional services (consulting, legal, accounting)
• Information technology services
• Construction and contracting
• Restaurant and food services
• Real estate brokerage
• E-commerce and online retail

You can apply for multiple activities (usually up to 10) on a single licence, which costs extra per additional activity — typically AED 500 to AED 1,000 each.

Getting the activity right matters because it determines:

• Whether you need additional approvals from government bodies
• Your office space requirements
• Your ability to obtain certain employee visas
• Your corporate tax treatment

If you are unsure which activity fits, learn how to choose your UAE business activity.

Step-by-Step LLC Setup Process

Step 1: Reserve Your Trade Name

You need to reserve a trade name with the DED. The name must:

• Not duplicate an existing registered name
• Not include restricted words (Allah, God, Dubai, UAE emirate names) unless approved
• Include the activity or a description of it
• Not be offensive or inappropriate

Cost: AED 620 for initial name reservation (valid for 6 months)

Timeline: Usually approved within 1 to 2 working days

You can apply online through the DED portal for Dubai, or the relevant emirate’s economic department website. Abu Dhabi uses the TAMM portal, Sharjah uses the SEDD portal, and so on.

Step 2: Get Initial Approval

Once your trade name is reserved, you apply for initial approval from the DED. This preliminary clearance confirms that the government has no objection to you establishing the business.

You will need:

• Trade name reservation certificate
• Passport copies of all shareholders
• Completed application form
• Description of business activities
• Draft Memorandum of Association (MoA)

Cost: AED 120 to AED 600 depending on the emirate

Timeline: 1 to 2 working days

Step 3: Draft and Notarise the Memorandum of Association

The Memorandum of Association is the founding document of your LLC. It sets out:

• Company name and registered address
• Business activities
• Share capital amount and distribution among shareholders
• Names and powers of managers
• Profit distribution arrangements

All shareholders must sign the MoA before a notary public. For individuals not physically present in the UAE, documents can be notarised abroad and attested through the relevant UAE embassy and Ministry of Foreign Affairs.

Cost: Notarisation fees range from AED 2,000 to AED 5,000 depending on the number of shareholders and whether you use a DED-approved typing centre or a private notary.

Timeline: 1 to 3 working days if signing in the UAE. 2 to 4 weeks if documents need embassy attestation from outside the country.

Step 4: Secure Your Office Space

Every mainland LLC requires a physical office. This is not optional. The DED will verify your tenancy contract during the licence application.

Your options:

• Traditional office lease: Full commercial space with Ejari registration
• Flexi-desk or business centre: Shared office arrangements in some emirates that provide Ejari-compliant tenancy
• Warehouse or industrial unit: For trading and contracting businesses

Annual rent costs:

• Flexi-desk (Dubai): AED 5,000 to AED 15,000 per year
• Small office (Dubai): AED 30,000 to AED 80,000 per year
• Small office (Sharjah/Ajman): AED 15,000 to AED 40,000 per year

If you want to reduce setup costs by comparing emirates, see our Dubai vs Abu Dhabi business setup comparison.

After signing your lease, you must register it through the Ejari system (in Dubai) or the equivalent tenancy registration system in your emirate. This is mandatory for the licence application.

Step 5: Apply for Your Trade Licence

With all the prerequisites in place, you submit your final licence application to the DED.

Documents required:

• Initial approval certificate
• Trade name reservation certificate
• Notarised Memorandum of Association
• Ejari tenancy contract
• Passport copies and Emirates ID copies of shareholders and managers
• No Objection Certificates (if any shareholder holds a UAE residence visa under a different sponsor)

Licence fee:

• Dubai DED: AED 10,000 to AED 15,000 per year (excluding additional activity fees)
• Abu Dhabi DED: AED 8,000 to AED 12,000 per year
• Sharjah DED: AED 6,000 to AED 10,000 per year
• Other emirates: AED 5,000 to AED 8,000 per year

Timeline: Your trade licence typically issues within 1 to 2 working days of submitting a complete application.

Step 6: Register for Corporate Tax and VAT

All UAE mainland LLCs must register for corporate tax with the Federal Tax Authority within 3 months of incorporation (or before the first tax period begins), regardless of revenue level.

VAT registration is mandatory if your annual taxable supplies exceed AED 375,000, and voluntary registration is available if they exceed AED 187,500.

Corporate tax registration: Free, done through the FTA e-Services portal VAT registration: Free, also through the FTA e-Services portal

For a full breakdown of corporate tax obligations, read our UAE corporate tax guide.

Step 7: Open a Corporate Bank Account

After receiving your trade licence, you need to open a corporate bank account. This can take 2 to 6 weeks depending on the bank and your business profile.

Major UAE banks for business accounts include Emirates NBD, Mashreq Bank, Abu Dhabi Commercial Bank, and Wio Bank. Digital banks like Wio offer faster account opening, sometimes within 3 to 5 working days.

Read our full guide on opening a UAE business bank account for detailed comparisons.

Total Costs Breakdown

Here is what setting up a mainland LLC actually costs:

These figures exclude visa processing costs for shareholders and employees, which run AED 3,000 to AED 7,000 per person.

Many business owners find professional help speeds up the process and avoids mistakes. Reputable setup firms like Virtuzone or Shuraa handle the complete process from name reservation to licence issuance for a service fee of approximately AED 5,000 to AED 12,000 on top of government fees.

LLC vs Freezone: Which Is Right for You?

An LLC is not always the best choice. Here is the quick decision framework:

Choose an LLC (mainland) if:

• You want to sell directly to UAE consumers
• You need to bid on government contracts
• You operate a restaurant, retail shop, or service centre
• You want to open offices in multiple emirates without restrictions

Consider a freezone instead if:

• You serve international clients only
• You want 100 percent import duty exemptions
• You are a consultant or freelancer with minimal staff
• You want lower setup costs and flexi-desk options

For a detailed comparison, read mainland vs freezone in the UAE.

Common Mistakes to Avoid

1. Picking the wrong activity. Choosing an activity that does not match your actual business can cause problems with banking, licensing, and future visa applications.

2. Underestimating office costs. The cheapest flexi-desk option looks attractive until you realise some banks reject them for corporate account opening. Verify with your target bank before committing to minimal office space.

3. Delaying corporate tax registration. The FTA imposes fines for late registration. Register as soon as you get your licence.

4. Not planning for visa costs. Shareholder and employee visas add AED 3,000 to AED 7,000 per person on top of everything else. Budget accordingly.

5. Skipping the PRO entirely. A Public Relations Officer (PRO) handles government document processing. For first-time company founders, a PRO or setup consultant saves weeks of navigating government portals and counter queues.

Your Next Steps

Setting up a UAE LLC is straightforward if you follow the steps in order and have all your documents ready. The key is preparation: get your activity right, reserve your name early, and budget properly for office space and banking.

For more reading:

• How to register a company in the UAE
• Best UAE freezones compared
• UAE trade licence types explained
• UAE company renewal guide
• UAE company setup costs 2026