Cost Breakdown: Setting Up an LLC in Dubai

Cost Breakdown: Setting Up an LLC in Dubai

Limited Liability Companies (LLCs) are the most popular choice for entrepreneurs in Dubai. They offer flexibility, legal protection, and credibility with clients and authorities. Understanding the costs involved is essential before starting your business.

Why Choose an LLC?

LLCs protect personal assets. Shareholders are only liable for their capital contributions. They allow foreign investors to own up to 100% in certain free zones or partner with UAE nationals in the mainland.

Main Costs to Consider

The total cost of setting up an LLC depends on location, business activity, number of visas, and additional approvals. Costs differ between Dubai Mainland and Free Zones.

ExpensesMainland (AED)Free Zone (AED)
License registrationStarts from 14,50012,000–15,000
Special activity costDepends on the Regulated Entity5,000 – 25,000
Establishment card5802,000
Visa quota150 per visaStarts from 2,000
Labor card680N/A
Visa costStarts from 5,000Starts from 3,750
Bank account openingStarts from 4,000Starts from 8,000
Office spaceStarts from 4,000Starts from 6750

Note: Costs are indicative and may change as per government rules.

Detailed Cost Breakdown

Startup Costs
Initial investments include office rent, equipment, and operational expenses. Ensure you have sufficient capital to cover these.

Business License
The licence allows your LLC to legally operate. Common options include:

  • Industrial licence
  • Commercial licence
  • Professional licence
  • Tourism licence
  • Agricultural licence

Business Name Registration
Reserve your company name to prevent duplication. Fees vary based on the name and type.

Notarisation of Memorandum of Association (MoA)
The MoA must be notarized to validate the LLC. This is a one-time cost for shareholders.

LLC Registration Fee
Covers trade license, special activity fees, administrative charges, Chamber of Commerce fees, and knowledge fees.

Employment Costs
Employee salaries and labor card costs must be considered. Costs vary by experience and role.

Corporate Service Agent Fees
Hiring professionals for legal, financial, and compliance support ensures smooth operations. Fees vary by service.

Office Rent
Mainland companies must rent physical office space. Free zones allow virtual offices or flexi-desks, reducing upfront costs.

Bank Account Opening
Essential for all business transactions. Starting cost is usually AED 3,000, depending on services.

Operational Expenses
Include miscellaneous and unforeseen costs. Always have a buffer to cover these expenses.

Final Words

Setting up an LLC in Dubai requires careful planning and budgeting. Costs vary based on location, business type, and additional requirements. With proper guidance, you can optimize costs and ensure smooth company registration.

Need help with setting up your LLC? Contact AR Associates today for expert advice and complete support through every step of your Dubai company formation.