LLC Company Formation Dubai - Incorporation, Costing in Free Zones

Business cultures are constantly evolving as times are passing by. Countries are gathering up resources to attract foreign investors all around the world. Some countries are making better uses of their resources and landmass then others. Dubai is one of such nation. Constant LLC formation in Dubai pushing the nation to a whole new level.

Dubai is, therefore, turning out to be one of the most desirable destinations for investors. This article explains the LLC formation in Dubai in a stepwise manner. You will also get to know Dubai company registration costs, and finally, Dubai free zone company open to making things convenient for new investors in Dubai.

Stages of limited liability company formation in Dubai

Consult an experienced business adviser

At first, you have to be connected with an experienced business advisor. He/she will lead you to your target company formation. A good corporate consultant will also advise you at every instance of business formation in Dubai.

Figure out your business type

You must have already sorted out the type of business you want to roll on in Dubai. Include this in your next stage of the company formation process in Dubai. It is important that you know that niche and set your company according to this.

Dubai’s corporate authorities commonly offer licenses for the following business niches:

  • Manufacturing Industry
  • Commercial business
  • Agriculture
  • Occupational services
  • Travels and Tourism business

Naming your company

Next, apply for a company name approval from the authority. The name approval is handled by the Department of Economic Development (DED) in Dubai. Once you have submitted drafted name registration document as recommended, you will get you company name approval certificate within a short period of time.

Collect business approval license

Now you have to get your business license and approval certificate according to the type of your business. A foreign investor who are interested to launch a business in Dubai have to get the approval of the General Directorate of Residency and Foreign Affairs of Dubai.

Make Memorandum of Association of your company

A MoA or Memorandum of Association is need to be made as a part of company registration procedures. To prepare this document you need a sponsor who is residing in Dubai. Make proper drafting of MoA form and submit it to DED for approval.

Business premises

Fix company premises for the business in Dubai. It is compulsory during the company setup process in this country. The company can either be established in economic zone, or free trade zone in Dubai. You have to get your location right to correspond with your business clients and strategy. At this phase you have to arrange a tenancy contract copy.

Retrieve other approvals and certifications

Collect licenses and approvals as recommended by the company authority and DED. You must have a local sponsor during company formation in Dubai. Keep in mind proper work permit and categorized employment visa is also mandatory.  

Dubai LLC registration costs

It is expected that you step into the company formation field with sufficient capital supply. Limited Liability company formation in Dubai demands sufficient supply of money. In this part of the article we will see the detail cost evaluation of company incorporation in Dubai.

Company registration processes Expenses (AED) Approx.
Company registration expenses  
Initial company approval certificate from DED (paid one time) 220
Company name approval (paid one time) 720
Notary expenses 2000
Drafting limited liability company contract (paid one time) 1200
Company trade license charge (per year) 600
Total DED fees (per year) 3020
Trade name publishing (per year) 400
Total external department charge (per year) 12500
Allowance for company employees’ accommodations (per year) 1200
Market fees (per year) 1000
Public waste management service fees for Municipality (per year) 1000
Chamber of Commerce fees (per year) 1200
Fees for ministry of economy and commerce (per year) 3000
Fees for local trade license (per year) 200
Civil defense fees (per year) 1000
Tejari fees (per year) 200
Administrative service fees (per year) 50
Commercial service improvement fees (per year) 400
Accessories (governmental cultural fees, abbreviations & innovation dirham fees) (per year) 2500
Real Estate brokers fees paid to DED 5000
Investors visa fees  
Total LLC company investors visa fees 12200
Employee visa fees    
Total employee visa cost 10000

This are approximate Dubai company registration costs expense sheet that you have to come up with during LLC company formation. The cost above mentioned are suitable for typical trading company formation. However, this cost increases in some cases when the company is an industrial business. For instance, fees for chamber of commerce and Public waste management service fees for Municipality is almost double in industrial businesses formation.

Even in case of trade name selection there is a variation in charges. If the name is in Arabic, the fees is much lower then the high cost if selected an English trade company name. For example, foreign company name requires extra fees of AED 2000 per year.

In case of fees implemented for Dubai LLC company employee visa, the labour card charges vary with employee visa category. The category has 4 classifications; A, B, C and D. the fees for each category are 653, 1553, 2053, and 3103 respectively.

These prices are exempted to alter. A company formation price however, got little less incase it is established in Dubai free trade zones.

Dubai free zone company

By now you have a better idea about LLC formation in Dubai and Dubai company registration costs. Keeping in mind that keeping the expense in limit can be an important aspect for many new investors in Dubai.  When this is the fact, establishing your business in Dubai free zone is the best option. 

So, let’s get a brief idea about Dubai free zone company or company in Dubai free trade zones. 

When considering free trade zone in Dubai, it means selected business zones that exempt investors in many aspects, especially in field of various taxations. A business investor would otherwise be liable to pay regular taxes. This means paying extra tax money which leads to excess government formalities as well. There are number of free trade zones in Dubai. Each of these zones are classified for specific types of business establishments and offers with various facilities for trade initiators.

One other reason for establishment of all these zones is for attracting foreign expats and therefore expand the scopes of foreign investments in Dubai. There are more than thirty FTZ, offering various business establishment opportunities in Dubai. Each of these comes with individual FTZ authorities who monitor, manages and implement rules for their respected zone. These areas offer comparatively more convenient and economic business establishment opportunities for foreign entrepreneurs.

Types of free zones in Dubai

The free zone in Dubai offers three routing categories for investors to carry out business. These are:

  1. Airport free zones
  2. Seaport free zones
  3. Mainland free zones

Based on these three routing categories, Dubai offers more than thirty free trade zones. These zones are designed in such a way that the establishment of businesses can also enjoy the routing facilities at convenience. Although there are more than thirty FTZ, some FTZs are more popular than others.

Requirements to establish a Dubai Free Zone company

In order to start a company in Dubai free zone, you must follow several steps. The list below are the requisitions you must mandatorily keep in mind to set your company in Dubai free trade zone.

  1. Know all the legal attributes and requisitions a particular FTZ demands
  2. Choose a unique company name
  3. Issue for a business license
  4. Get a commercial premise in the free zone
  5. Get all approvals recommended by the government and the zonal authority
  6. Get business license

Stages of registering a free zone company in Dubai

LLC formation in Dubai is comparatively linear, so is the company establishment process in FTZ. Majority incorporation processes in FTZs are the same. However, some steps vary in different free zones due to the local rules established by their FZA or Free Zone Authority. But you need to know about low-cost business setup in Dubai. Apart from those, these are the common requisitions for all free trade zones:

  • Select your company niche. Based on that niche you have to issue for you business license and commercial accommodation facilities.
  • Submit recommended documents for company registration process. These documents include:  
  • Registration application form
  • Sponsor reference for bank accounts
  • Letter of intent
  • No Object Certificate or NOC for the manager issued by the previous sponsor
  • Personal identification papers of company managers and shareholders
  • Get your business license by completing the recommended payment processes

Cost evaluation to start a company in Dubai Free zone

When comparing with Dubai company registration cost, Dubai free zone company has various exemptions in taxes, accommodations and living facilities. These are reasons which basically attracts investors who are ready to do business overseas.


Do I have to pay an extra buck for English trade name?

Yes, if your company trade name is in Arabic, you get some relaxation, whereas English trade name will cost you extra money, which is AED 2000.

What is the cost for individual category employee visa types?

**Category A employee visa: AED 653
**Category B employee visa: AED 1553
**Category C employee visa: AED 2053
**Category D employee visa: AED 3103

Which authority body in Dubai handles all trade name and company registration procedures?

Department of Economic Development (DED) monitors and handles relevant fields in Dubai

What are the documents required to apply for free zone company registration?

These are the paperwork you must come up with when registering your company in Dubai Free Zone
**Registration application form
**Sponsor references for bank account opening
**Letter of intent
**NOC for the newly appointed manager issued by the previous sponsor ID or passport documents of company managers and shareholders

What are the popular free trade zones are Dubai?

There are more than 30 free zones to establish a company in Dubai. However, some FTZ are very popular for investors. To know about popular free trade zones, See the list of popular Free trade zones in Dubai

Related Article:

Setting up an Offshore Company in Dubai


Company Registration Expert Since 2012