How to Form an LLC in the UAE: Step-by-Step Guide

Starting a Limited Liability Company (LLC) is one of the most popular and trusted ways to establish a business in the UAE mainland. LLCs offer flexibility, local market access, and limited liability protection for owners.

“AN LLC IS A SMART BUSINESS STRUCTURE THAT BALANCES CONTROL WITH RISK MANAGEMENT.”

– JD Business Team

This guide breaks down the essential steps and requirements to form your LLC in the UAE — so you can launch confidently and compliantly.

Step 1: Choose Your Business Activity

Your first step is selecting the business activity that your LLC will perform. The Department of Economic Development (DED) categorizes activities, and your license type will depend on this.

✅ Pro Tip: Check if your activity requires special approvals or permits.

Step 2: Decide on Your Company Name

The company name must comply with UAE naming conventions:

• No offensive or religious terms
• No names of governing authorities
• Should reflect the business activity
• Must be unique and not previously registered

✅ Pro Tip: Reserve your trade name early to avoid delays.

Step 3: Find Local Sponsor or Partner

For most LLCs, UAE law requires a local sponsor or partner holding at least 51% ownership. However, certain activities allow 100% foreign ownership under recent reforms.

✅ Pro Tip: Consider a silent local partner agreement or use newer provisions allowing full ownership in select sectors.

Step 4: Draft the Memorandum of Association (MOA)

The MOA outlines the ownership structure, shareholding percentages, and business objectives. It must be notarized by a UAE public notary.

✅ Pro Tip: Work with legal experts to ensure your MOA matches your business plan and complies with local laws.

Step 5: Apply for Initial Approval

Submit your business plan and MOA draft to the DED for initial approval. This confirms that your business activity is permitted and that your partners meet legal requirements.

Step 6: Secure a Business Premises

You must have a physical office or commercial space that complies with your business activity’s requirements. This can be a leased office, retail space, or warehouse.

✅ Pro Tip: Use Ejari (tenancy contract) to prove your office lease for licensing.

Step 7: Submit Final Documents and Pay Fees

Provide the DED with:

• Initial approval certificate
• MOA
• Ejari tenancy contract
• Passport copies of partners
• Other required documents

Pay the licensing fees (varies by emirate and activity).

Step 8: Receive Your Trade License

After verification, the DED issues your LLC trade license, officially authorizing you to operate your business.

Step 9: Register with Other Authorities

Depending on your activity, you may need:

• Municipality approvals
• Chamber of Commerce membership
• Visa and labor card registration via MOHRE

💡 Final Thoughts

Forming an LLC in the UAE mainland is a structured but manageable process. Careful planning, the right partners, and compliance with regulations will pave your way to success.

JD Business offers full support throughout the LLC formation process — from name reservation to license issuance and beyond.