Mainland · Dubai

LLC company in Dubai: what it is and how it works

A complete guide to the Dubai mainland LLC (Limited Liability Company): what it is, 100% foreign ownership, real costs, the mandatory office, visas and tax. The structure for operating without limits across the whole UAE market.

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Marina Plaza office building in Dubai Marina
XIV · Formation Mainland LLC · Dubai
DET Government of Dubai licence
100% Foreign ownership for most activities
All UAE Unrestricted local market
USD 12,000 Indicative year-1 cost
Quick answer

The LLC is the local-market company.

A Dubai mainland LLC (Limited Liability Company) is a limited liability company registered with the Department of Economy and Tourism (DET), outside the free zones. It can sell and operate across the whole UAE, contract with the public sector and open branches in any emirate. Since the 2021 reform, most activities allow 100% foreign ownership.

01

Limited liability

1 to 50 shareholders whose liability is limited to the capital contributed, under the Commercial Companies Law (Decree-Law 32/2021).

02

100% foreign

Most commercial and industrial activities allow full foreign ownership; only strategic activities keep local-partner requirements.

03

Full market

Direct B2C and B2B sales across the UAE, public tenders and physical commercial premises, with no intermediaries.

Who uses it

What a Dubai LLC is used for.

01 Retail

Shops and restaurants

Businesses with premises open to the public: trade, dining, salons and clinics.

02 Local services

Clients in the UAE

Companies serving the Emirati market in person.

03 Contracting

Construction and projects

Activities with municipal permits, works and contracts that require a mainland supplier.

04 Tenders

Public sector

Contracting with government and semi-public companies, off-limits to free zones.

05 Real estate

Agencies and brokers

Property brokerage and RERA-regulated activities that require a local licence.

06 Distribution

UAE logistics

Direct product distribution in the local market without an intermediary agent.

Comparison

Mainland LLC versus Free Zone and Offshore.

The three structures produce companies with different capabilities. The key question is where your clients are: if they are inside the UAE, the LLC has the edge.

StructureMain differencePractical advantageCommon uses
Mainland LLC A DET licence with full local-market access, a mandatory physical office (Ejari) and visas according to the space. Operates across the UAE without restrictions: direct sales, public tenders and branches in any emirate. Retail, dining, local services, construction, real estate and distribution.
Free Zone A free-zone company with its own activity catalogue and an address within the zone (flexi desk accepted). Lower entry cost, agile processing and the QFZP regime with 0% on qualifying income. International services, consulting, e-commerce and foreign trade.
Offshore A non-resident vehicle (RAK ICC, JAFZA, Ajman) with no operating licence, office or visas. Minimal cost for asset holding, holdings and documentary international invoicing. Holdings, wealth, triangular trade and international structures.

Indicative costs from our Dubai guide: mainland LLC from ~USD 12,000 in year 1, Free Zone from ~USD 3,500, Offshore from ~USD 4,500. Figures vary by activity and services; confirm before filing.

Fit criteria

When an LLC pays off — and when it does not.

The LLC is not "better" than a free zone: it is the right structure when the business lives off the local Emirati market.

01 Local

Clients inside the UAE

If your revenue comes from the Emirati market, the LLC avoids distributors and restrictions.

02 Physical

Premises open to the public

Shops, restaurants and clinics need a mainland licence and municipal permits.

03 B2G

Public contracts

Government tenders require a mainland supplier in practically every case.

04 Large teams

Visas per office

The visa quota grows with office space, without flexi desk caps.

05 International

You may not need it

If your clients are outside the UAE, a free zone usually delivers the same result for less.

06 Hybrid

Dual licence

Some free zones (such as DWTC) offer mainland access without incorporating a second company.

Physical office for a Dubai LLC company
Selection criteria

The mandatory office is the practical difference.

An LLC requires a real, registered office lease (Ejari) from day one: its biggest fixed cost and its biggest advantage in visas and substance.

It may fit less well if your operation is international or remote: you would pay for an office and local fees without using the market access. In that case, compare with a free zone or, for asset holding, with an offshore or holding structure. Our assessment always compares the three routes before filing.

Compare options
Costs and requirements

What a real LLC budget includes.

01

DET licence

Indicative cost from ~USD 12,000 in year 1 (includes 1 visa) and renewal from ~USD 6,500, depending on activity and approvals.

02

Mandatory office

A registered lease (Ejari); its cost is not included in the licence and it defines your visa quota.

03

Documentation

Notarised MOA, shareholder passports and details, name reservation, initial approval and sector permits where applicable.

04

Annual compliance

Licence and Ejari renewal, accounting, Corporate Tax (general regime) and VAT where applicable.

Step by step

How a Dubai LLC is incorporated step by step.

The file goes through the DET; banking, visas and sector permits are handled in separate phases.

  1. 01

    Define activity and structure

    DET catalogue activities, shareholders, capital and whether your sector requires special approvals.

  2. 02

    Validate that mainland pays off

    Compare with free zone and dual licence based on clients, costs and visas.

  3. 03

    Reserve name and initial approval

    The DET validates the name, activities and proposed corporate structure.

  4. 04

    Sign the MOA

    A notarised memorandum of association with shareholders, capital and share split.

  5. 05

    Lease an office and register Ejari

    The premises or office lease, registered in the Ejari system.

  6. 06

    Pay and receive the licence

    The DET issues the commercial licence; the company legally exists in the UAE.

  7. 07

    Process establishment card and visas

    The immigration file for shareholders and employees per the office quota.

  8. 08

    Activate banking and compliance

    Corporate account, Corporate Tax and VAT registration where applicable, and accounting.

Before deciding

Mistakes to avoid with an LLC.

Full market access does not fix poor planning: activity and budget mistakes are paid at every renewal.

01

Going mainland without needing it

If your clients are outside the UAE, you pay for an office and local fees without using the advantage.

02

Forgetting the office cost

Ejari is mandatory and not in the licence price: budget it from day one.

03

Choosing the wrong DET activity

Contracts, invoices and bank flows must match the licence; fines start at AED 10,000.

04

Ignoring sector approvals

Health, education, real estate or food require extra permits with their own timelines.

05

Assuming a local partner is required

No longer the rule: most activities allow 100% foreign ownership; verify your activity before accepting legacy structures.

06

Confusing the tax regime

An LLC is taxed under the general regime (0% up to AED 375,000 and 9% above); QFZP is free-zone only.

Official sources

Official sources on the Dubai LLC.

We cross-check the legal form, licences and requirements against federal law and the Government of Dubai’s official information.

Dubai Department of Economy and Tourism: Business Licensing

Official licensing and registration authority. Original information: dubaidet.gov.ae/en/licences-and-permits/business-licensing

UAE Federal Decree-Law No. 32 of 2021 on Commercial Companies

Official legislation. Original text: uaelegislation.gov.ae/en/legislations/1542

Federal Decree-Law No. 47 of 2022 on Corporate Tax

Official legislation. Original text: mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf

Federal Tax Authority: VAT

Official licensing and registration authority. Original information: tax.gov.ae/en/taxes/vat.aspx

UAE glossary

Key Dubai LLC terms.

Concepts worth mastering before incorporating in Dubai mainland.

LLC · Limited Liability Company

Mainland's limited liability company: 1 to 50 shareholders, liability limited to capital and full access to the UAE market.

Mainland

Territory outside the free zones. A mainland company operates freely across the UAE and can contract with the public sector.

DET · Department of Economy and Tourism

The Government of Dubai's economic department, responsible for the emirate's mainland licences.

Ejari

Dubai's official lease registration system; registering the office lease is mandatory for an LLC.

MOA · Memorandum of Association

The notarised foundational document defining shareholders, share capital, share split and the company's activity.

Strategic activity

Sectors with security or national-interest impact that keep Emirati shareholding requirements despite the 2021 reform.

Establishment Card

A mandatory government card that allows the company to sponsor residence visas.

Trade License

The DET commercial licence, renewed annually, that authorises the company's permitted activities.

Related services

Compare before incorporating.

Frequently asked questions

What clients most often ask.

What is an LLC company in Dubai?

A Limited Liability Company (LLC) is Dubai mainland's limited liability company: it is registered with the Department of Economy and Tourism (DET), allows 1 to 50 shareholders whose liability is limited to the capital contributed, and can operate across the whole UAE, including the local market and public tenders.

Can a foreigner own 100% of a Dubai LLC?

Yes, for most activities. Since the Commercial Companies Law reform (2021), commercial and industrial activities allow full foreign ownership. Only strategic activities (defence, certain regulated sectors) keep Emirati shareholding requirements. We verify your specific activity before incorporating.

How much does a Dubai LLC cost?

Indicatively from ~USD 12,000 in year one (including 1 visa) and renewal from ~USD 6,500, plus the cost of the mandatory office, which is not included and depends on the area and size. Figures vary by activity and approvals; confirm before filing.

Is a physical office mandatory for an LLC?

Yes. The LLC requires a real lease registered in Ejari from incorporation. Free-zone flexi desks do not qualify. In return, the space you lease defines your visa quota, without flexi desk caps.

Which is better, a mainland LLC or a Free Zone?

It depends on where your clients are. LLC if you live off the local market: direct sales, premises open to the public, government contracts. Free Zone if your operation is international: lower entry cost, agile processing and the QFZP regime. There are also dual licences that combine both from a free zone.

How long does it take to incorporate a Dubai LLC?

Indicatively 2 to 3 weeks with complete documentation: name reservation, initial approval, notarised MOA, Ejari and licence issuance. Activities with sector approvals (health, education, food) can take longer.

How many visas does an LLC provide?

The quota depends on the office space leased: more space, more visas for shareholders and employees. It is one of the advantages over a free-zone flexi desk, normally capped at 3 visas.

What taxes does a Dubai LLC pay?

The general Corporate Tax regime: 0% up to AED 375,000 of profit and 9% above, plus 5% VAT if you exceed the registration threshold. The QFZP 0% regime on qualifying income is exclusive to free zones and does not apply to a mainland LLC.

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