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.

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 reserve a unique trade name with the Dubai Department of Economy and Tourism (DET). The name must comply with DET rules, avoid offensive or existing names, and be approved before moving forward with the business setup process.

Cost (AED): 600 – 2,000. Trademark registration 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.

• Drafting the Memorandum of Association (MoA)

The Memorandum of Association (MoA) is the core legal document of an LLC. It defines the company’s share capital, ownership percentages, profit distribution, and decision-making structure. To be legally valid, the MoA must be attested by a public notary.

• 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.

• Office Space Rental

Office Requirement: Dubai mainland LLCs require a registered physical office with an Ejari contract approved by DET.

• Sponsorship Fees

Most Dubai mainland LLCs now allow 100% foreign ownership for most commercial activities, removing the earlier requirement of a 51% local Emirati sponsor and allowing investors full control and profit retention.

Exceptions: Certain regulated or strategic activities (such as legal consultancy, oil & gas, and security services) still require a Local Service Agent (LSA) or local partner. LSAs do not hold equity and act only as a government liaison for compliance.

Despite full ownership rights, many investors opt for corporate sponsorship to ease regulatory approvals, PRO services, and bundled packages covering office space, visa processing, and license renewals.

• 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).

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

Read more: Visa Renewal Process in Dubai

• 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.

• 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.

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.

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.