The Limited Liability Company is the most widely used corporate form in the UAE, and for good reason: liability is limited to the share capital, ownership can be split flexibly between individuals and corporate shareholders, and a mainland LLC can trade with any customer in the country without a distributor.
This guide covers what an LLC is under UAE law, how shareholding and management work, the documents and steps required to incorporate, realistic costs, and the obligations that follow issuance.
What an LLC is under UAE law
A mainland LLC is a company registered with the Department of Economy and Tourism whose shareholders' liability is limited to their capital contribution. It may have between one and fifty shareholders, who can be individuals, UAE companies or foreign companies.
Free zones offer an equivalent structure, usually named FZ-LLC, FZCO or FZE depending on the zone and the number of shareholders. The liability principle is the same; the difference lies in where the company may trade and which authority regulates it.
Ownership and shareholding
Following the Commercial Companies Law amendments, foreign investors can hold 100% of the shares in most mainland activities. Shares are allocated in the Memorandum of Association and can be held in any proportion agreed between the parties, subject to the minimum share value set by the authority.
Where a corporate shareholder is used, the parent company's documents must be attested up to the UAE Ministry of Foreign Affairs, and a board resolution authorising the incorporation and appointing a signatory is required.
- 1 to 50 shareholders permitted
- Individuals and corporate entities may both hold shares
- 100% foreign ownership available for most activities
- Share transfers require an amended, notarised MOA
Managers and authority
Every LLC appoints one or more managers named in the MOA and on the licence. The manager holds the authority to sign on behalf of the company, is the person banks assess as the primary signatory, and is normally the individual sponsored on the company's first residence visa.
Powers can be limited in the MOA — for example, requiring joint signatures above a set value — which is worth doing where shareholders are not involved in daily operations.
Share capital requirements
There is no universally enforced paid-up capital requirement for a mainland LLC; the MOA states a capital figure that must be adequate for the activity, commonly AED 100,000 to AED 300,000, without a bank deposit certificate being required in most cases. Free zones set their own nominal capital, typically AED 1,000 to AED 50,000.
Certain regulated activities do carry real capital and bank-guarantee obligations, particularly in financial services, insurance broking, recruitment and general trading with customs-heavy operations.
The incorporation process
- Reserve the trade name and obtain initial approval from the DET
- Secure external approvals for regulated activities
- Draft the MOA, allocate shares and define the manager's powers
- Notarise the MOA before a UAE notary or through the approved digital channel
- Sign a tenancy contract and register it with Ejari
- Pay the licence fees and receive the trade licence
- Open the immigration file and obtain the establishment card
- Apply for residence visas, then the corporate bank account
LLC formation costs
| Component | Typical range (AED) |
|---|---|
| Trade name and initial approval | 800 – 2,000 |
| MOA drafting and notarisation | 1,500 – 3,500 |
| DET licence fee | 12,000 – 20,000 |
| Office rent + Ejari (small unit) | 15,000 – 45,000 per year |
| Establishment card | 1,000 – 2,000 |
| Residence visa per person | 3,500 – 7,000 |
Ongoing LLC compliance
An LLC must renew its licence, Ejari and establishment card annually, maintain accounting records, register for corporate tax, and register for VAT once taxable supplies exceed AED 375,000 in a rolling twelve-month period.
Employee-related obligations include WPS salary payments, mandatory health insurance and end-of-service accrual. Missing any single renewal can freeze immigration transactions for the whole company, so a single tracked calendar matters more than most founders expect.
LLC versus other structures
A Sole Establishment is cheaper but leaves the owner personally liable for the entire business. A branch office cannot carry out activities beyond those of its parent and has no separate legal personality. A free zone FZ-LLC gives the same liability protection at a lower cost but restricts direct mainland trading.
For a business selling to UAE customers, employing staff and expecting to add shareholders or investors later, the mainland LLC remains the most durable structure.
الأسئلة الشائعة
How many shareholders can a UAE LLC have?
Between one and fifty. Shareholders may be individuals, UAE companies or foreign companies.
Do I still need a local sponsor for an LLC?
Not for most activities. Full foreign ownership is now permitted across the large majority of mainland business categories.
Is paid-up capital blocked in a bank account?
In most cases no. The MOA states a capital figure, but a bank deposit certificate is only required for specific regulated activities.
Can an LLC be owned by a foreign company?
Yes. The parent's incorporation documents and a board resolution must be attested up to the UAE Ministry of Foreign Affairs.
How long does LLC formation take?
Typically five to ten working days for the licence once approvals and the tenancy contract are in place.
Can an LLC sponsor employee visas?
Yes. Quota depends on the leased office area and the activity, and is assessed when the immigration file is opened.
How do I transfer LLC shares?
Through an amended MOA notarised before the notary, followed by an update to the licence record with the DET.
Does an LLC need audited accounts?
Accounting records are mandatory. Audits are required for certain activities and are increasingly requested at renewal and for corporate tax support.