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LLC Company

Helping you navigate UAE business setup, PRO procedures, and digital transformation — through clear, independent consultancy.

Everything You Need to Know About LLC Companies and How Dahhan Business Services Can Help You

A Limited Liability Company (LLC) is one of the most widely chosen business structures in the UAE, offering a combination of operational flexibility, legal protection for owners, and attractive tax advantages. It allows entrepreneurs to safeguard personal assets while conducting a wide range of commercial activities within the mainland. Whether you are a startup founder, a growing business, or an investor looking to restructure your operations, forming an LLC provides a strong legal foundation and credibility. Dahhan Business Services brings years of expertise in UAE company formation, ensuring a smooth, fully compliant, and time-efficient setup. We guide you through every step, from trade name registration to final license issuance.

Introduction to LLCs

An LLC company has become one of the most favored business structures worldwide, thanks to its strategic blend of benefits drawn from both corporations and partnerships. This hybrid model offers business owners the advantage of limited liability protection, meaning their personal assets are safeguarded from business debts and liabilities. At the same time, it provides the pass-through taxation and management flexibility typically associated with partnerships, making it an attractive option for entrepreneurs, small businesses, and investors alike. The structure allows owners to customize internal operations, profit distribution, and management roles—offering the best of both worlds in a legally sound and efficient framework.

What is an LLC?

A Limited Liability Company (LLC) is a recognized legal business entity that provides a versatile and practical structure for its owners, referred to as members. It merges the key advantages of both corporations and partnerships, offering members the ability to directly manage the business without the rigid formalities typically required in corporate setups. One of the primary benefits of an LLC is limited liability protection, which shields members’ assets from business-related debts and obligations. Additionally, LLCs enjoy operational flexibility, fewer reporting requirements, and simplified compliance procedures, making them an ideal choice for entrepreneurs and investors seeking an efficient and secure way to establish and run a business.

Benefits of Forming an Limited Liability Company in the UAE

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Operational Flexibility:

Less stringent corporate formalities compared to corporations.

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Tax Benefits:

Pass-through taxation where profits are only taxed once and

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Credibility:

An LLC often appears more credible to potential customers and partners compared to a sole proprietorship or partnership.

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Setting Up an Limited Liability Company in the UAE

Step-by-Step Process

Number 1

Business Plan and Initial Consultation:

Dahhan Business Services begins with understanding your business model, after which we create a tailored business plan to meet regulatory requirements and foster business growth.

Number 2

Name Reservation:

We assist in choosing a unique business name that complies with the UAE naming conventions and reserve it with the relevant authorities.

Number 3

License Application and Initial Approval:

Lodging the required documents for an initial approval from the Department of Economic Development (DED) or another relevant authority.

Number 4

Memorandum of Association (MOA):

Preparing the Memorandum of Association (MOA) outlining the structure of the LLC, including member roles and profit-and-loss sharing arrangements. We offer the flexibility of virtual signing to save time for the signatories or the standard option of physical signing.

Number 5

Office Space:

Securing a physical office space if the mainland setup is required.

Number 6

Final Approval:

Fulfilling any remaining legal and regulatory requirements to get the final approval from the relevant authorities.

Number 7

Opening a Corporate Bank Account:

Providing support on opening a bank account for your new LLC.

Why Choose Dahhan Business Services for LLC Setup?

With over ten years of experience in business setup across the UAE, Dahhan Business Services is a trusted partner for entrepreneurs and investors alike. We are committed to providing streamlined, transparent, and client-centric solutions that take the stress out of starting a business. From company structuring and documentation to financial guidance and securing government approvals, our expert team manages every aspect with accuracy and efficiency. We recognize that establishing a Limited Liability Company (LLC) can be complex, especially for newcomers to the UAE market. That’s why we combine legal, logistical, and financial know-how to deliver a seamless and fully compliant setup experience. Whether you’re a solo founder or a growing enterprise, we customize our support to match your business goals.

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Expert Guidance:

From initial consultation to full business setup.

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Efficiency:

Streamlined processes that save time and avoid common pitfalls.

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Compliance:

Ensuring all legal aspects are diligently covered.

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Personalized Service:

Tailored services that meet individual business needs.

Important Considerations for LLCs in the UAE

Ownership Structure

With the changes in UAE laws regarding company ownership, expatriates can now fully own a company with a 100% ownership structure, making it more advantageous. This structure is similar to that of free zones. However, a few specific business activities may still require either 51% or full ownership by a UAE national.

Legal and Regulatory Requirements

All Limited Liability Companies (LLCs) in the UAE are required to operate by the UAE’s Commercial Companies Law (Federal Law No. 2 of 2015). This law outlines the legal framework governing company formation, structure, and operations within the country. To be legally recognized, every LLC must complete the registration process through the Department of Economic Development (DED) in the respective emirate or with the relevant free zone authority, depending on the chosen jurisdiction. Compliance with this law ensures that the business is authorized to operate, maintains proper governance, and fulfills all regulatory obligations required by UAE authorities.

Conclusion

Forming an LLC in the UAE offers many advantages, such as limited liability protection and operational flexibility. However, the process can be complex and involves multiple regulatory steps. Dahhan Business Services is here to ensure a smooth and hassle-free LLC setup in the UAE.

Ready to take your business to the next level? Contact us today to learn how Dahhan Business Services can assist in setting up your LLC in the UAE.

Frequently Asked Questions (FAQs)

Trade License renewal must be done yearly. Make sure to renew your license before it expires

You need at least one shareholder (can be 100% foreign in many sectors), a registered local office address, approved trade name, and initial approval from DED. The minimum capital requirement varies by activity.

How long does it take to establish an LLC in Dubai?

The complete setup, including license issuance, typically takes 3-5 working days for individual ownership. However, the timeline may vary depending on the ownership structure. With Dahhan’s expedited service, we strive to complete the process as quickly as possible.

Can a Dubai LLC sponsor visas for employees?

Yes, once licensed, your LLC company can apply for residence visas for owners and employees. The number depends on your office space and business activity.

What's the difference between mainland LLC and free zone company?

Mainland LLCs have the advantage of being able to trade directly within the UAE market (B2B & B2C concept) and are commonly used by businesses looking to bid for government contracts. In contrast, companies established in free zones are generally restricted to operating within their designated zone, engaging in business-to-business (B2B) transactions, or conducting international trade.

Do Dubai LLCs pay corporate tax?

Yes, Dubai Limited Liability Companies (LLCs) are subject to UAE corporate tax, which was introduced on June 1, 2023. The corporate tax rates are as follows:
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0% on taxable income up to AED 375,000 (to support small businesses).
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9% on taxable income above AED 375,000.
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Different tax rates may apply to large multinational companies that meet specific criteria under the OECD Pillar Two framework.
However, certain sectors such as natural resource extraction are subject to separate tax regulations at the emirate level. Additionally, businesses operating in free zones may still enjoy tax incentives, provided they comply with the UAE’s economic substance requirements.

Can I change my business activities after LLC formation?

Yes, but it requires submitting a modification application to DED and paying additional fees. Some activities may require new approvals or capital.

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