As the business landscape of the UAE becomes more lucrative, investors are increasingly choosing the Limited Liability Company (LLC) structure to start a business. It works well for SMEs, growing startups, and established investors. The reason is simple. This company structure provides liability protection and flexibility in management. Also, with an LLC company, you get easy access to the UAE market.
Whether you want a service company, a specialist trading activity, or a general trading license, LLC company formation in the UAE is the right choice for your business. With UAE LLC company registration, you get an internationally recognised structure with local advantages. The benefits include 100% foreign ownership and competitive tax rules.
This blog helps to understand the process of LLC company setup in UAE, what an LLC is, and how to start an LLC in UAE. You will also see how Aurum, business setup consultant for RAKEZ, can simplify the whole process for you.
What is an LLC in the UAE?
An LLC in the UAE is a separate legal entity and in this structure the shareholders’ liability is limited to the capital they invest in the company. In most cases, it can have between 1 and 50 shareholders, whether individuals or corporate bodies.
Key point | Explanation |
|---|---|
Liability | The company is responsible for its debts, not the owners personally. |
Allowed activities | LLCs can be used for many legal activities: commercial, industrial, and professional. |
Free zone structure | In free zones like RAKEZ, LLC-style entities (FZ-LLC, FZE, FZC) follow free zone rules. |
Why LLC Company Setup in UAE is so Popular
When investors ask how to start an LLC in UAE, they usually have three goals: protect personal assets, access the local and regional market, and keep the structure flexible for growth. It is interesting to note that LLCs help you meet all three goals.
Key advantages of LLC formation in UAE include:
- Limited liability
Your personal belongings are protected. Creditors generally cannot pursue your personal assets for company obligations, as long as you comply with laws and do not commit fraud.
- Recognition and flexibility
LLC is a widely understood global structure. It is easier to explain to banks, partners, and international clients than some niche structures.
- Choice of jurisdiction
You can set up a mainland LLC or a free zone LLC in a zone like RAKEZ, where you benefit from 100% foreign ownership and free-zone incentives.
- Attractive tax and regulatory environment
UAE corporate tax is 9% above a certain profit threshold, with specific regimes for qualifying free zone income, and there is no personal income tax.
Step-by-Step: How to Start an LLC in UAE
UAE LLC company registration in RAKEZ free zone is easy with Aurum. From initial consultation to bank account opening, our team fully supports you with the entire process.
1. Partner with Aurum, the RAKEZ Accelerator
After consultation with the Aurum team, you will be able to decide which activity type is suitable for your free zone company. If you want to trade in multiple product categories, you may consider a general trading license so you can import, export, and distribute a wide range of goods under one licence. Your chosen activity list will determine the licence category and sometimes extra approvals.
2. Reserve Your Trade Name and Get Initial Approvals
Next, you will be asked to provide a few name options for your LLC that follow UAE naming rules, and we will reserve the approved name with the free zone authority for you. We will also submit a simple application with shareholder details and your planned activities, so the authority can review your business and confirm if any extra approvals are needed.
3. Prepare Company Documents and Arrange Your Office
At this stage, you prepare and sign the Memorandum of Association (MoA), which shows your company objectives, shareholding, and capital. This document is signed by all shareholders and attested if required. In parallel, we also help you arrange your office or facility in RAKEZ. The choice of space depends on your activity whether you need a flexi-desk, standard office, warehouse, or industrial space.
4. Get Your Licence and Complete Immigration Setup
Once your documents and facility are decided, we will help with submitting everything and paying the fees. The authority then issues your trade licence and completes your commercial registration. After that, you open a labour file, obtain an establishment card, and start the visa and Emirates ID process for shareholders and employees.
5. Bank Account Opening and Tax Registration
When you get your licence and company documents, you can open a UAE corporate bank account. Our team can also help you with it. We will also check if your business needs VAT or corporate tax registration based on your activity and turnover. Because you have to follow the required steps to stay compliant with filings and payments. Aurum keeps you compliant with the UAE regulations.
Key Documents for UAE LLC Company Registration
- Passport copies of all shareholders and managers
- UAE residence visa and Emirates ID (if applicable)
- No Objection Certificate (NOC) from current sponsor (for residents already employed in UAE)
- Proposed trade name and activity list
- Attested Memorandum of Association (MoA)
- Lease agreement / tenancy contract for your office or facility
- Application forms from the free zone authority
If there are corporate shareholders, you may also need incorporation certificates, board resolutions, and attested constitutional documents of the parent company.
How Aurum, Business Setup Consultant for RAKEZ, Can Help
AURUM, the RAKEZ Accelerator in Dubai, is your on-ground business setup consultant for RAKEZ. While the steps of LLC formation in the UAE are manageable, you still need to deal with different authorities and handle various documents. RAKEZ is already a one-stop platform for company formation, facilities, visas, and government services, and AURUM brings this closer to you by helping you with LLC company setup in UAE.