Choosing to establish a limited liability company (LLC) in Dubai is a strategic move for many entrepreneurs. But before you begin, you likely wonder: how much does it cost to start an LLC in Dubai? From licensing fees to office rent and visa expenses, this guide provides a comprehensive breakdown of startup costs, helping you budget effectively for your small business setup in Dubai.
Why Start an LLC in Dubai?
Dubai’s business-friendly environment, world-class infrastructure, and tax advantages make it a top destination for a small business in Dubai. An LLC offers:
- Local market access: Trade directly with UAE customers under a recognized legal structure.
- Limited liability protection: Owners’ personal assets are shielded from business debts.
- Operational flexibility: Engage in multiple activities under one general trading license cost structure.
Understanding how much does it cost to start an LLC in Dubai? ensures you’re prepared for every expense and can capitalize on the emirate’s dynamic economy.
LLC Mandatory Cost Components
When estimating how much does it cost to start an LLC in Dubai, consider these core expenses:
1- Trade License and Registration Fees
- Dubai trade license cost:
| Mainland LLC (DED) | AED 10,000–15,000 |
| Free zone LLC | AED 12,000–18,000 |
- General trading license cost:
If you plan to import, export, and distribute various products, expect higher fees within the given ranges.
| Registration & name reservation | AED 600–1,000 |
| Memorandum of Association (MOA) notarization | AED 1,000–1,500 |
These figures illustrate the baseline dubai business license cost. Free zone packages sometimes bundle visa quotas, but mainland setups offer direct access to the local market.
2- Local Sponsor or Service Agent
For an onshore LLC, UAE law mandates a local sponsor (for commercial activities) or service agent (for professional activities):
| Local sponsor fee | AED 7,000–12,000 annually |
| Service agent fee | AED 4,000–8,000 annually |
These costs affect cost of LLC in Dubai significantly on the mainland. In contrast, a small business setup in Dubai within a free zone allows 100% foreign ownership without sponsor fees.
3- Office Space Requirements
An LLC must maintain a physical office or flexi-desk arrangement:
| Flexi-desk (shared co-working) | AED 5,000–10,000 per year |
| Serviced office | AED 15,000–25,000 per year |
| Traditional office lease | AED 30,000–80,000 per year |
Choosing a flexi-desk helps reduce your Dubai LLC trade license cost and is ideal for startups testing the market.
4- Visa and Immigration Fees
Each visa entails:
- Entry permit: AED 700
- Medical test & Emirates ID: AED 800–1,200
- Residency visa stamping: AED 1,500–2,000
| Entry permit | AED 700 |
| Residency visa stamping | AED 1,500–2,000 |
For two shareholders, budget at least AED 6,000–8,000. Adding staff increases visa costs proportionally, impacting your trade license UAE budget.
5- Government and Miscellaneous Fees
| PRO service & document clearing | AED 2,000–4,000/year |
| E-Channel and typing charges | AED 500–1,000/year |
| Chamber of Commerce membership | AED 500–1,000 |
These smaller fees ensure compliance and smooth operations, rounding out your total dubai business license cost.
6- Optional Expenses and Add-Ons
Beyond mandatory fees, consider optional or situational expenses.
A- Import/Export Security Deposit
If you hold a general trading license cost for customs purposes, you may need a refundable security deposit of AED 5,000–10,000.
B- Accounting and Audit
- Bookkeeping & VAT filings: AED 5,000–10,000/year
- Annual audit: AED 7,000–12,000, depending on turnover
Although not strictly mandatory unless you hit the VAT threshold, professional accounting safeguards your small business setup in Dubai against penalties.
These policies protect your liabilities and enhance credibility with clients.
C- Marketing and IT Setup
Initial branding, website development, and IT infrastructure can range widely:
- Basic website: AED 3,000–6,000
- Digital marketing budget: AED 5,000–15,000 for initial campaigns
Allocate marketing resources wisely to support your small business in Dubai growth from day one.
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Comparing Mainland vs. Free Zone Costs
Choosing jurisdiction profoundly influences how much does it cost to start an LLC in Dubai?
| Cost Component | Mainland LLC | Free Zone LLC |
| License Fees | AED 10K–15K | AED 12K–18K |
| Local Sponsor/Agent | AED 7K–12K | 0 (100% ownership) |
| Office | AED 30K–80K/year | AED 5K–25K/year (flexi-desk/office) |
| Visa Fees | AED 3K–4K/visa | AED 3K–4K/visa |
| Customs Security Deposit | AED 5K–10K | Rarely required |
For a lean small business setup in Dubai, a free zone LLC often emerges as the most cost-effective, especially when leveraging cheapest trading license in UAE packages. However, if local market access is paramount, mainland registration is the better—but pricier—choice.
Cheapest License Options
Entrepreneurs on tight budgets frequently ask about cheapest trading license in UAE or the cheapest trade license in UAE with visa. Here are some cost-saving routes:
A- Emerging Free Zones
- Ajman Free Zone Authority (AFZA): License packages from AED 5,500, including one visa
- Umm Al Quwain Free Trade Zone (UAQ FTZ): Packages starting AED 6,000
These zones target cost-sensitive businesses and offer cheapest trade license in UAE with visa options that bundle licensing, visa quota, and office solutions.
B- Freelancer Permits
For solo entrepreneurs, several free zones (e.g., Fujairah Creative City) provide freelancer permits under AED 4,000, covering specialized services without full LLC formation.
C- Package Deals
Some service providers offer bundled deals that combine dubai trade license cost, flexi-desk, and visas for as low as AED 9,000/year—positioned as the cheapest trading license in UAE for startups.
Alternative: How to Buy a Business in Dubai
An alternative to fresh formation is how to buy a business in Dubai—acquiring an existing LLC (a “shelf company”):
- Shelf company cost: AED 15,000–25,000 (based on age and activity)
- Transfer fees: AED 2,000–5,000
- Renewal of existing license: AED 10,000–15,000
Acquiring a ready-made entity bypasses many registration steps, offering immediate trade license UAE approval and existing visa quotas—potentially reducing initial costs and setup time.
Step-by-Step Budgeting Example
Let’s run a sample budget for how much does it cost to start an LLC in Dubai? on a lean setup in Ajman Free Zone:
- License & Registration: AED 5,500
- Flexi-Desk Office: AED 6,000
- One Visa Package: AED 3,000
- Government & PRO Fees: AED 2,500
- Bank Account Opening: AED 1,000
- Accounting & Audit (YEAR 1): AED 7,000
This small business setup in Dubai model demonstrates that by selecting the right jurisdiction, you can minimize costs while obtaining all essentials to operate legally.
💡 How mazeed Simplifies Your LLC Formation?
mazeed, a premier UAE consultancy, specializes in guiding clients through every step—ensuring clarity on how much does it cost to start an LLC in Dubai? mazeed’s services include:
- Jurisdiction Advisory: Helping you choose between mainland and free zone for the most competitive dubai business license cost.
- License Procurement: Securing dubai trade license cost packages that fit your budget, including cheapest trading license in UAE options.
- Sponsor and PRO Services: Managing local sponsor arrangements to streamline your trade license UAE compliance.
- Shelf Company Transfers: Advising on how to buy a business in Dubai to accelerate your market entry.
- Post-Formation Support: Handling visa processing, bank account opening, and bookkeeping setup for long-term success.
FAQs: How Much Does It Cost to Start an LLC in Dubai?
How much does it cost to start an LLC in Dubai?
Costs range from AED 15,000 (lean free zone setup) to AED 80,000+ (mainland with dedicated office and multiple visas).
What is the cheapest trading license in UAE?
Emerging free zones like AFZA offer packages from AED 5,500 including one visa.
Are sponsor fees mandatory?
Yes, for mainland LLCs; free zone LLCs allow 100% foreign ownership with no sponsor fees.
Can I buy an existing LLC?
Yes—shelf companies cost AED 15,000–25,000 plus transfer fees, expediting your launch.
Is visa included in trade license packages?
Many free zones bundle visas, lowering your dubai trade license cost and simplifying the process.
How Much Does It Cost to Start an LLC in Dubai?
The cost of starting an LLC in Dubai typically ranges from AED 15,000 to AED 40,000, depending on the business activity, number of visas required, office space, and government approvals.
How much does it cost to set up a limited company in Dubai?
Setting up a limited liability company (LLC) in Dubai can cost between AED 15,000 and AED 30,000, excluding optional services like office rent, visas, and legal consultations.
How to start an LLC in Dubai?
To start an LLC in Dubai, you need to choose a business activity, reserve a trade name, obtain initial approval, draft the Memorandum of Association (MoA), lease office space, and apply for the trade license through the Department of Economic Development (DED).
What is LLC in UAE salary?
LLC in UAE salary refers to the salary structure paid to employees working under a company registered as a Limited Liability Company. There’s no fixed salary standard—it varies by role, industry, and company policy.
What are the benefits of LLC in Dubai?
An LLC in Dubai allows 100% profit repatriation, access to local UAE markets, limited liability protection for shareholders, and the ability to open corporate bank accounts and hire staff.
What is the difference between Ltd and LLC in UAE?
Both Ltd and LLC are limited liability structures, but in the UAE, LLC (Limited Liability Company) is the standard for onshore businesses, while Ltd is more common in jurisdictions like the UK and doesn’t have a legal definition in UAE law.
Which is best, LLC or LTD?
In the UAE, an LLC is the preferred legal structure for mainland businesses due to its compliance with local laws and access to broader markets. “Ltd” is not formally recognized under UAE company law.
What is a single owner LLC in the UAE?
A single-owner LLC in the UAE is a company fully owned by one person. While the traditional LLC structure requires 2–50 shareholders, some free zones now allow single-owner LLCs under specific conditions.
How many partners can an LLC have in Dubai?
An LLC in Dubai can have a minimum of 2 and a maximum of 50 shareholders, each of whom can be an individual or a corporate entity.
Can an LLC own property in Dubai?
Yes, an LLC registered in Dubai can own property, but only in designated areas approved for foreign ownership. If all shareholders are UAE nationals, property can be owned anywhere in Dubai.
Can you own 100% of your business in Dubai?
Yes, as of recent UAE regulations, many business activities allow 100% foreign ownership without the need for a local Emirati sponsor, especially in mainland sectors approved by the DED.
Can you be employed by two companies in Dubai?
In Dubai, it is possible to work for two companies if you have a No Objection Certificate (NOC) from your primary employer and obtain a part-time work permit from the Ministry of Human Resources and Emiratisation (MOHRE).
Understanding how much does it cost to start an LLC in Dubai? is vital for strategic budgeting. By dissecting expenses—license fees, sponsor charges, office solutions, visa costs, and optional services—you gain clear insights into your total investment. Whether you pursue a cost-effective small business setup in Dubai within a free zone using the cheapest trade license in UAE with visa, or seek full mainland access with a local sponsor, informed decisions ensure your venture starts on solid financial footing. Partner with mazeed to navigate complexities, optimize costs, and launch your LLC with confidence.
Disclaimer: This publication is for informational purposes only and should not be considered professional or legal advice. While we strive for accuracy, we make no guarantees regarding completeness or applicability. mazeed, its members, employees, and agents do not accept or assume any liability, responsibility, or duty of care for any actions taken or decisions made based on this content. For official guidance, please refer to the UAE Ministry of Economy & Tourism.
