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.
| Expenses | Mainland (AED) | Free Zone (AED) |
| License registration | Starts from 14,500 | 12,000–15,000 |
| Special activity cost | Depends on the Regulated Entity | 5,000 – 25,000 |
| Establishment card | 580 | 2,000 |
| Visa quota | 150 per visa | Starts from 2,000 |
| Labor card | 680 | N/A |
| Visa cost | Starts from 5,000 | Starts from 3,750 |
| Bank account opening | Starts from 4,000 | Starts from 8,000 |
| Office space | Starts from 4,000 | Starts 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.
