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.