Procedure for Registering an LLC in Dubai
Registering a Limited Liability Company (LLC) in Dubai involves several key steps that ensure compliance with local regulations and set up the business for operational success. Here’s a breakdown of the process:
1. Define Business Activities
This is especially crucial for mainland company formation, as certain activities may require additional clearances from local authorities.
2. Choose a Trade Name
Selecting a unique and compliant trade name is essential. The name should reflect your business’s activities and adhere to the UAE’s naming guidelines, which restrict certain words and require all names to be appropriate and culturally sensitive.
3. Determine Shareholder Structure and Local Sponsorship
For mainland company formation in Dubai, an LLC requires a local Emirati sponsor, also known as a local service agent or partner, who holds 51% of the company’s shares. Alternatively, you may consider other legal structures within free zones if 100% foreign ownership is a priority.
4. Prepare and Submit Legal Documents
Prepare essential documents for the registration process, which typically include:
• Passport copies of all shareholders
• Emirates ID copies for local sponsors or partners
• Proof of address and No Objection Certificates (NOCs) if applicable
• Memorandum of Association (MOA) that outlines the company’s structure, roles, and responsibilities.
These documents are then submitted to the Department of Economic Development (DED) in Dubai, which oversees mainland company formation procedures.
5. Secure Initial Approval
Once documents are submitted, an initial approval from the DED is required to proceed. This approval confirms that your business activities and company name meet regulatory standards and that there are no issues preventing registration.
6. Draft and Notarize the MOA
The MOA is a legally binding document that defines the rights, duties, and profit-sharing arrangements between shareholders. It must be notarized in the presence of all shareholders at a public notary in Dubai.
7. Rent Office Space and Obtain Ejari
In Dubai, all LLCs are required to have a physical office space. After securing a location, the tenancy contract should be registered with Ejari (Dubai’s tenancy contract registration system). Ejari registration is essential for obtaining the trade license.
8. Apply for Trade License and Final Approvals
Submit your Ejari and other documentation to the DED to apply for your trade license. Depending on your business activities, additional approvals from relevant government departments or ministries may be required, especially for activities that impact public health, safety, or security.
9. Pay Fees and Receive Your Trade License
The final step is to pay the required government fees for company registration, licensing, and other associated services. Once payment is made, the DED will issue your trade license, officially registering your LLC in Dubai.
10. Visa Processing for Employees and Owners
After receiving the trade license, you can start processing residency visas for shareholders, employees, and dependents. This step involves medical tests, health insurance, and visa stamping, completing the establishment of your LLC.
