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The Cost of Forming an LLC Company in Dubai

cost of LLC company formation in Dubai and the UAE
Table of Contents

Most entrepreneurs and investors choose the Limited Liability Company (LLC) structure for its advantages in setting up a business in Dubai. These advantages include lower investment requirements, enhanced credibility, and opportunities to engage with the government and network with other businesses.

Foreigners have several options for establishing an LLC:

  • Single Ownership (100% ownership – Mainland or Freezone): 
  • Multiple Foreign Owners (100% Ownership –  Mainland or Freezone): 
  • Partnering with a UAE Local (Mainland): This is the traditional route, in which foreigners can hold a maximum of 49% ownership, while a UAE national (or multiple UAE nationals, or even a UAE-based company) holds the remaining 51% share.

However, there are associated costs to consider before making a final decision. This guide will explore all the different costs involved in LLC Company Formation in Dubai and then discuss the steps involved in the LLC formation process.

Breakdown of Dubai LLC Company Formation Cost

Dubai LLC registration cost varies based on multiple factors, such as selected jurisdiction (mainland or freezone), type of business activity, number of required visas, number of shareholders required, and additional government approvals.

LLC Company Formation Cost Mainland vs Free Zone

ExpensesMainland (AED)Freezone (AED)
License registration costStarts from 14,500Starts from 12,000K to 15,000K
Special activity costDepends on Chosen ActivityRanges Between 10,000 to 25,000
Establishment card7502,000
Government Authority Administration FeesStarts from 20002,000 to 5,000
Visa Allocation Cost (Quota)NAStarts From 2,000
Labor Card1,000NA
Visa CostStarts from 5,000Starts from 3,750
Bank Account OpeningStarts from 4,000Starts from 8,000
Office SpaceStarts from 4,000Starts from 3,000 (Inside the Freezone)
Hidden CostNoneNone

*Note: Please be noted that all the costs above may vary and are subject to change as per government authorities from time to time.

Let’s understand the cost breakdown in detail below:

Startup Setup Costs

Every business requires investment to start. It could be the investment required to purchase essential equipment or to rent an office space. You need to carefully analyse all costs and ensure you have the necessary capital to handle them.

Cost of Licence

A licence is a legal document issued by the relevant government authority allowing a company to conduct proposed business operations. Most entrepreneurs in Dubai choose a trade licence. 

However, depending on the nature of your business, you may have to choose a different business licence.

Some common licences are:

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

Business Name Registration Cost

You must reserve your business name so other businesses can’t claim it. To do so, you must reserve your business name so other businesses can’t claim it. To do so, you submit an application to the relevant authority and pay a reservation fee. The business name registration fee may also vary significantly based on your chosen name. Other costs include commercial name fees and foreign name fees.

Notarisation of Memorandum of Association

Once the MOA is drafted, it must be notarized to make it valid. It is a one-time investment that shareholders or partners of a company must bear.

LLC Registration Fee 

All businesses are legally required to register with the respective authority of the jurisdiction. In the Mainland, it is the Department of Economic Development Dubai (DED). Every Free Zone has its own authority for registration of your business. 

The registration fee includes several costs, such as:

  • Trade license fees
  • Special activity fees
  • Administrative Service fee
  • Chamber of Commerce fee
  • Knowledge Fee

Employment Visa and Salary Cost

You must also consider salary and labour costs. The salaries vary significantly depending on the experience and expertise of the employees. 

Corporate Service Agent Fees

To run your business smoothly, you must hire financial, legal, and business professionals. Different professionals charge different fees. Hiring a consultancy firm that can handle all the compliance and legal matters is better. 

Office Rent

It is mandatory to rent office space in the Dubai Mainland. The cost of rent depends on factors like location, rented space area, etc. You can choose the location to save some costs. However, authorities will visit for inspection after you rent the office. 

In a Free Zone, you can save costs by renting a virtual office or even a flexi desk. This saves a ton on your initial investment, which you can invest in scaling your business.

Bank Account Opening 

Opening a corporate bank account is an essential step, as all your business transactions happen with this account. The cost of opening a corporate bank account starts at AED 3000 and may go up depending on the additional services required.

Cost of Operations

Running a business requires capital; sometimes, you have to bear costs you did not account for. Always have some extra money allocated for miscellaneous expenses.

Final Thoughts

If you want to set up an LLC in Dubai but are unsure about the total cost required, you can contact our consultants. We have years of experience and expertise in registering LLCs in Dubai. 

We take a straightforward approach to get you an LLC license and help you assume the total costs required. We can assist you through each step to keep the overall costs as low as possible. 

We always strive to exceed your expectations and provide exceptional services. We treat all our clients with the same respect and care. Whether you are a startup or an international brand, we do our best and offer the same level of services.


How much does it cost to start an LLC in Dubai?

There is no fixed cost of starting an LLC in Dubai. Factors like licence cost, equipment, and office rent affect the cost significantly. However, you can expect at least AED 20,000 to 30,000 as the initial investment required.

What is the minimum capital required for a Dubai LLC?

As per the Ministry of Economy, there is no minimum capital requirement for LLC formation in Dubai. However, you must have enough capital to cover the different registration costs and ongoing expenses. A good initial capital can be between AED 100,000 and AED 500,000.

How much does it cost to renew an LLC licence in UAE?

According to the Department of Economic Development Dubai, the LLC licence renewal cost is the same as the licence issuance cost. Usually, the cost is around AED 8,000-15,000.

What fees must I pay for a Limited Liability Company registration in Dubai?

There are several different fees associated with the LLC registration in Dubai:
– Registration Fees with Respective Authority 
– Mainland Trade Licence Fee
– Yearly Chamber of Commerce fees
– Administrative fee 
– Yearly special activity fee
– Knowledge Fee

How much does it cost to register an LLC company in the Dubai free zone?

The cost to register an LLC company in the Dubai Free Zone is AED 12,500*. Free Zone offers more flexibility in terms of initial investment, such as allowing virtual offices. Hence, the cost of starting a company in a Free Zone is quite low compared to registering an LLC on the Mainland.

How much will it cost to open an LLC company in Dubai Mainland?

The cost of opening an LLC in Dubai Mainland ranges between AED 19,500 and AED 25,000. It is important to note that costs differ significantly based on different industries and additional costs such as visa fees, immigration registration fees, and more.


About the Author


Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.