Dubai is a global business hub, attracting entrepreneurs from all over the world. Its strategic location, investor-friendly laws, and world-class infrastructure make it ideal for businesses seeking growth and access to international markets.
Table of Contents
For foreign investors and local entrepreneurs alike, registering a Private Limited Company (LLC) in Dubai offers a credible corporate structure, limited liability protection, and access to Dubai’s thriving economy.
In this guide, Dewey & LeBoeuf Dubai walks you through every step of registering a Private Limited Company in Dubai from planning to compliance, while highlighting how our expert legal services can make the process seamless.
Why Choose a Private Limited Company in Dubai
A Private Limited Company in Dubai offers multiple advantages:
- Limited liability: Shareholders are only liable to the extent of their capital contribution.
- Credibility: Being an LLC enhances trust with banks, clients, and partners.
- Access to business licenses: An LLC allows you to obtain most commercial and professional licenses.
- Flexibility in shareholding: Ownership can be structured between local and foreign investors.
Dubai’s LLC structure is ideal for businesses seeking a local presence, legal protection, and the ability to trade commercially both locally and internationally.
Who Can Register a Private Limited Company in Dubai
Both UAE nationals and foreign investors can establish a Private Limited Company in Dubai. Following recent legal reforms, foreign investors can now hold up to 100% ownership in most sectors on the Dubai mainland and, as always, in free zones. However, certain strategic sectors may still require a UAE national partner or service agent.
If you want full foreign ownership, Dewey & LeBoeuf Dubai can advise on:
- Setting up in a free zone to enjoy 100% ownership and simplified procedures.
- Using nominee arrangements where legally permitted for mainland companies.
- Structuring your shareholding and corporate setup to comply fully with UAE regulatory requirements.
Types of Licenses for Private Limited Companies
Before registration, you must determine your business activity, which dictates your license type:
- Commercial license: For trading and sales activities.
- Professional license: For service-oriented businesses such as consultancy, IT, or legal services.
- Industrial license: For manufacturing or production activities.
The chosen license affects your registration process, minimum capital requirements, and the type of approvals needed from UAE authorities.
Step-by-Step Process to Register a Private Limited Company in Dubai
1. Decide on Your Business Activity and Legal Structure
Determine your primary business activity as this affects:
- Licensing requirements.
- Shareholding rules.
- Required approvals from authorities.
At Dewey & LeBoeuf, we help clients select the optimal activity classification to ensure compliance with the Department of Economic Development (DED) in Dubai.
2. Choose a Trade Name
Your company’s trade name must:
- Be unique and not conflict with existing names.
- Not to violate UAE public morals or government policies.
- Include the type of entity (e.g., LLC).
The DED evaluates trade name applications and issues preliminary approval, which usually takes a few days.
3. Obtain Initial Approval
Initial approval from the DED confirms that the UAE government permits you to operate your business in your chosen activity.
This step requires:
- Passport copies of shareholders and managers.
- Emirates ID or residency proof for UAE nationals (if any).
- Description of the business activity.
Dewey & LeBoeuf can handle this on your behalf, ensuring all documents are correctly submitted and approvals are fast-tracked for a Private Limited Company in Dubai.
4. Draft the Memorandum of Association (MOA)
The MOA outlines:
- Shareholding structure and capital distribution.
- Rights and responsibilities of shareholders.
- Company objectives and scope of activity.
For LLCs in Dubai, the MOA must be notarized with a UAE public notary. Our legal team drafts a legally compliant MOA, reducing the risk of errors that could delay registration.
5. Secure Office Space and Tenancy Contract
A Dubai LLC must have a physical office address. Requirements include:
- A valid tenancy contract registered with Ejari.
- Office space compatible with the business activity and license type.
We assist clients in identifying appropriate office locations, preparing tenancy agreements, and completing Ejari registration for a Private Limited Company in Dubai.
6. Finalize Licensing and Registration
After completing initial approval, MOA, and office lease:
- Submit all documents to DED for final approval.
- Pay the necessary registration and license fees.
- Obtain the official Commercial License.
This process confirms your LLC is legally recognized and allows you to start operations.
7. Apply for Additional Approvals (If Required)
Certain activities, such as health, education, or food services, require additional government approvals.
Dewey & LeBoeuf guides clients through:
- Ministry-specific approvals.
- Compliance with health and safety regulations.
- Industry-specific inspections.
8. Open a Corporate Bank Account
Opening a bank account in Dubai requires:
- Copies of the commercial license and MOA.
- Board resolution authorizing account signatories.
- Passport copies and identification of shareholders and managers.
We liaise with local and international banks to streamline corporate banking for foreign clients.
9. Visa and Labor Requirements
An LLC in Dubai allows you to sponsor visas for shareholders, employees, and dependents:
- Each LLC shareholder can typically sponsor two or more employee visas.
- Employee contracts must comply with UAE labor law.
Our legal team ensures all visa applications, employment contracts, and labor law requirements are correctly processed.
10. Maintain Compliance and Renewals
After registration, your company must comply with ongoing requirements:
- Annual license renewal with the DED.
- Update MOA or trade license for changes in shareholders or activities.
- Comply with labor and immigration regulations.
- Maintain accurate financial records for audit and tax purposes.
We provide continuous support to maintain full compliance and prevent fines or license suspensions for a Private Limited Company in Dubai.
Documents Required for Registration
- Passport copies of all shareholders and managers.
- UAE residency documents (if applicable).
- Proof of office tenancy (Ejari contract).
- Initial approval certificate from DED.
- Draft MOA signed by all shareholders.
- UAE bank reference or other supporting documents.
Costs, Fees, and Hidden Expenses to Consider
Registering a Private Limited Company in Dubai involves various costs, and understanding them helps avoid surprises:
Mandatory Fees
- Trade name reservation: AED 620–2,000
- Initial approval: AED 100–500
- MOA notarization: AED 1,000–3,000
- Commercial license: AED 10,000–25,000
Office and Operational Costs
- Office lease (Ejari registered): AED 15,000–50,000 yearly
- Visa issuance fees: AED 3,000–7,000 per visa
- Employee health insurance and mandatory labor benefits
Potential Hidden Expenses
- Local sponsor or nominee director fees (for mainland LLCs)
- Translation or notarization of documents
- Additional approvals for certain business activities (healthcare, education, food, etc.)
Planning for these costs in advance reduces delays and compliance risks. Our legal team helps clients prepare a complete budget, identify hidden fees, and streamline all approvals to minimize time and financial exposure.
Practical Tips for Entrepreneurs
- Engage a licensed corporate service provider to ensure compliance with UAE regulations.
- Verify the legal ownership and lease terms of office space early.
- Prepare notarized and translated documents in advance.
- Track licensing deadlines to avoid fines or delays.
Free Zone vs Mainland LLC: Which is Right for You?
When registering a Private Limited Company in Dubai, you have two main options: a Mainland LLC or a Free Zone Company. Choosing the right structure depends on your business goals, target market, and ownership preferences.
Mainland LLC
- Allows you to operate anywhere in Dubai and the UAE.
- Typically requires a UAE national partner holding 51% of shares, though some exemptions apply in certain sectors.
- Suitable for businesses serving local clients or trading outside the free zones.
Free Zone LLC
- Allows 100% foreign ownership without a local partner.
- Simplified company setup, flexible visa options, and no local sponsorship requirements.
- Usually limited to conducting business within the free zone or internationally, direct trade in mainland Dubai may require additional approvals.
Deciding between a Free Zone and a Mainland company is crucial to register a Private Limited Company in Dubai. Dewey & LeBoeuf Dubai helps entrepreneurs evaluate the right structure based on business activity, investment goals, and regulatory compliance, ensuring you start on the strongest legal footing.
Common Mistakes to Avoid
- Submitting incomplete or unnotarized MOA.
- Ignoring the UAE national partnership requirement for mainland LLCs.
- Choosing the wrong business activity classification.
- Delaying bank account setup before commencing operations.
Frequently Asked Questions
Can a foreigner own a Private Limited Company in Dubai?
Yes, depending on the sector. Free zones allow 100% foreign ownership. Mainland LLCs may require a UAE national holding 51% unless exemptions apply.
What is the minimum share capital required?
Minimum capital varies by business activity. Most service companies in Dubai require AED 300,000 or less, though some activities may have no minimum.
How long does it take to register an LLC in Dubai?
From start to finish, registration typically takes 2–4 weeks with proper documentation and approvals.
Do I need a physical office to register a Private Limited Company in Dubai?
Yes, a valid office lease is required for all LLCs in Dubai mainland. Free zones have flexible office requirements.
Can Dewey & LeBoeuf handle the entire process?
Absolutely. We provide end-to-end legal services, from MOA drafting and DED approval to office lease compliance, visa processing, and corporate banking setup.
Why Work with Dewey & LeBoeuf Dubai
Registering a Private Limited Company in Dubai involves multiple legal, administrative, and regulatory steps. Dewey & LeBoeuf Dubai provides comprehensive support for:
- Structuring your LLC and drafting legal documents.
- Handling approvals, MOA notarization, and trade license issuance.
- Coordinating banking, office setup, and employee visas.
- Ensuring compliance with all Dubai laws and regulations.
Partnering with us ensures your LLC is legally compliant, fully operational, and positioned for success in the UAE market.
Contact our Dubai office today to start the process and receive a tailored incorporation plan for your Private Limited Company in Dubai.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE