How Much Does It Cost to Set Up an LLC in Dubai?

Dubai stands as a global beacon for business, attracting entrepreneurs and Small-to Medium-sized Enterprises (SMEs) with its strategic location, tax advantages, and world-class infrastructure. A Limited Liability Company (LLC) remains one of the most popular and versatile business structures for those who want to operate on the mainland. It gives business owners direct access to the local UAE market and flexibility for a wide range of commercial activities.

However, before you embark on your entrepreneurial journey, you must understand the complete financial picture. The cost to set up an LLC in Dubai is not a single, fixed fee. Instead, it is a sum of several components, including government fees, legal charges, and administrative expenses. A clear and accurate budget is essential for a smooth and compliant setup.

This blog provides a detailed breakdown of the various costs involved in forming an LLC company in Dubai, helping you plan your finances effectively and avoid unexpected expenses.

The total LLC company formation cost in Dubai depends on several factors, including your business activity, the number of visas you need, and the type of office space you choose. Let’s break down the primary expenses you will encounter.

• Trade Name Registration

Every new business must secure a unique trade name with the Dubai Department of Economy and Tourism (DET). You must choose a name that complies with the rules, avoiding offensive terms or names already in use. You must also reserve the name before you proceed with other steps.

Cost (AED): 600 – 2,000. This fee varies based on whether you apply for an instant license or a standard one, with the “Invest in Dubai” portal often showing specific fees for each service.

• Initial Approval Fee

Before you can form your company, you need preliminary approval from the DET. This step ensures that your proposed business activity is permissible and that the authorities have no initial objections. This is a critical prerequisite for all mainland LLCs.

Cost (AED): 600 – 2,000. The fee can vary slightly depending on the nature of your business and any required external approvals.

• Drafting the Memorandum of Association (MoA)

The MoA is the foundational legal document for an LLC. It outlines the company’s capital structure, the percentage of shares held by each partner, profit distribution, and the company’s decision-making framework. A public notary must attest to this document for it to be legally valid.

Cost (AED): 500 – 2,000. This amount can be fixed or may be a percentage of the company’s capital, although many jurisdictions no longer have a minimum capital requirement. The Notary Public attestation fee for a contract with a value less than AED 50,000 is typically AED 500, but can go up to a capped AED 20,000 for higher-value contracts.

• License Fees

The most significant part of your LLC company cost in Dubai is the trade license fee itself. The DET issues this license, and its fee depends on your chosen business activity. The cost can fluctuate based on the specific type of license you need and the number of activities you include.

Cost (AED): The LLC license cost in Dubai for a new license generally ranges from:

• Commercial: 10,000 – 15,000. This covers activities like trading and e-commerce.
• Professional: 7,000 – 12,000. This is for service-based businesses, such as legal or IT consultancy.
• Industrial: 12,000 – 18,000. This is for manufacturing and industrial operations.

• Office Space Rental

A physical office is required to set up a Dubai mainland LLC. The Dubai Department of Economy and Tourism (DET) mandates a registered address backed by an Ejari tenancy contract.

For certain business activities, you can start with a shared office or flexi-desk at a business center, which is a more affordable option. Some business setup packages even include office space along with the trade license, making the process simpler and cost-effective.

Cost (AED): 15,000 – 50,000 annually. You can choose from various options, including co-working spaces (flexi-desks), which are often the most affordable, shared offices, or a full-fledged private office. For instance, a basic flexi-desk package can start as low as AED 5,000 to AED 10,000 annually.

• Sponsorship Fees

Most mainland LLCs in Dubai now allow 100% foreign ownership for the majority of commercial activities, eliminating the previous requirement for a local Emirati sponsor holding 51% of the company. This reform makes it easier for investors to fully control their business and retain all profits.

Exceptions:

• Certain regulated or strategic activities (e.g., legal consultancy, oil & gas, security services) still require a Local Service Agent (LSA) or local partner.
• LSAs do not hold equity but act as a government liaison to support compliance.

Even with full ownership rights, many investors still choose corporate sponsorship arrangements to simplify regulatory approvals, manage PRO services, or access bundled packages that may include office space, visa processing, and license renewals.

Cost (AED): 15,000 – 50,000 annually. The local sponsor’s fee can be a fixed yearly payment or a percentage of the company’s profit, as agreed upon in a notarized contract. Many business setup consultants provide corporate sponsorship options, which can offer greater stability and predictability.

• Visa Fees

If you are a foreign investor, you will need to apply for a residence visa. Each investor, partner, or employee visa has associated costs, including medical tests and Emirates ID fees.

Cost (AED): The costs of Visa Services can vary based on the visa type (investor, partner, or employee).

• Investor Visa (2–3 years): 4,000 – 5,000
• Employee Visa: 3,000 – 6,000 (varies based on company size and visa quota)
• Medical Test: 400 – 700
• Emirates ID: 370 – 500

These fees may vary depending on nationality and the urgency of processing.

• Government Approvals & Other Fees

Depending on your specific business activity, you might need additional approvals from various government bodies. For example, a food-related business needs approval from the Dubai Municipality, and a transport company needs approval from the RTA.

Cost (AED): 2,000 – 10,000. These fees are unpredictable and directly tied to your business model. You should allocate a contingency fund for these potential costs.

• Corporate Bank Account Setup

Most banks in Dubai do not charge a direct fee to open a corporate account, but they usually require a minimum initial deposit and a monthly average balance ranging from AED 25,000 to 200,000, depending on the bank. Additional fees may apply for services such as cheque books, online banking, or other transactions.

Some free zone banks and fintech platforms, like Wio, Zand, and Mashreq NeoBiz, offer lower entry barriers, making it easier for startups to open accounts.

Cost (AED): 2,000 – 10,000. This includes the initial deposit, and some banks may charge an annual maintenance fee if your balance falls below the required threshold.

Keep in mind that licenses, visas, and office space require annual renewal. Renewal fees typically range between 80% to 90% of the initial setup cost, so careful budgeting is essential to maintain smooth operations.

While it is difficult to provide an exact figure due to the many variables, here’s a realistic estimate for different types of setups.

• Basic LLC Setup (1-4 visas, shared office): This option is suitable for startups and small businesses that want to minimize initial expenses. It typically includes a flexi-desk or shared office space and a few visas.
  • Estimated Total (AED): 45,000 – 65,000.
• Full-Service LLC (premium office, multiple visas): This is for businesses that require a dedicated office, a higher number of visas, and a more comprehensive package. This level of investment provides a more professional image and greater operational capacity.
  • Estimated Total (AED): 70,000 – 100,000+.

Recent data shows that in Q1 2025, Dubai issued over 19,000 new business licenses, accounting for 59% of all UAE business licenses. This significant increase highlights the city’s continued appeal to investors. This growth drives a competitive market for business setup services, which can also influence pricing.

You can take several strategic steps to minimize your initial LLC company formation cost in Dubai.

• Opt for a flexi-desk or shared office space initially: Instead of renting an expensive private office from day one, choose a flexi-desk package. This provides a physical address for your license and meets the legal requirements at a fraction of the cost.
• Choose business activities that require fewer regulatory approvals: Some business activities, such as general trading or professional services, require less paperwork and fewer external approvals, which can significantly reduce your costs and administrative burden.
• Negotiate fixed-rate sponsorship agreements: Work with a business setup consultant like Safe Ledger to find a reliable corporate or individual sponsor who charges a fixed annual fee. This prevents any ambiguity and secures your financial planning.
• Handle some processes yourself: While you should use a professional for critical steps, you can save some money on administrative services by handling certain tasks like gathering documents or making appointments.

Setting up an LLC in Dubai is a strategic investment in a market full of opportunities. While the costs can seem substantial, a clear understanding of the breakdown empowers you to budget accurately and make informed decisions. The primary expenses include trade name registration, license fees, MoA drafting, and office space, along with variable costs like visas and external approvals.

Remember, the initial LLC company formation cost in Dubai is just the beginning. You must also account for annual renewal fees and other operational expenses. By using smart strategies like choosing a flexi-desk and a fixed sponsorship fee, you can manage your budget effectively and start your business on a solid financial footing. Dubai’s welcoming business environment and long-term potential make this investment a compelling choice for entrepreneurs seeking growth and success.