How to open an LLC in Dubai for a foreign citizen?

The UAE is one of the most economically attractive and profitable countries for entrepreneurs who want to open their business abroad.

The UAE is a country with a developed infrastructure and a reliable banking system, a well-thought-out tax base and a stable exchange rate of the national currency.

In order to conduct business in Dubai, you must first register a company. And this, in turn, is a long process that requires a lot of time and effort. Therefore, it is recommended to seek qualified help from a consulting organization. For example, a law firm with extensive experience in the field of commercial law is engaged in the registration of an LLC in Dubai: company can be trusted, it is friendly to each client, adheres to a professional approach and devotes enough time to solve all issues. They provide their services both for the registration of companies in the free zone and of offshore companies.

Why should you choose Dubai?

How to open an LLC in Dubai for a foreign citizen?

9.9 million people live in the UAE, of which 2.5 million live in one of the largest cities — Dubai. This city is the country’s leader in diversifying the economy, reducing dependence on the oil factor, attracting foreign investment, trading services such as tourism, information, transport and commercial.

There are about 40 free economic zones for business in the UAE. They provide entrepreneurs with preferential conditions. More than half of them are located on the territory of the Emirate of Dubai.

Types of companies in the UAE

In this country you can open 3 kinds of companies: offshore, free-zone and an LLC.


An offshore company is a company that allows its owner to open an account in any bank in the country. It can provide its services in any other country, but not in the UAE themselves.

An offshore company is not permitted to get payments to a Dubai bank, export / import products in the Emirates, hire people, and rent an office.

Therefore, if the company develops rapidly, the owner will not be able to rent an office and hire staff. In order to prevent this, before registering your business, it is important and necessary to find out for what purpose you want to create it and what business plans you have for the future.

In the event that a person only needs an account at the bank in this country, an offshore is an ideal option!


This is the second type of company in the UAE. Foreign citizens are already allowed to register a company on their own behalf. However, it can only carry out its services on the same territory.

The proprietor of a free-zone, unlike an offshore company, can hire people and rent an office. The company has the possibility to import and export products from the Emirates, and conduct its activities in any country.


The last, third type of company is LLC. Foreign citizens can own the entire business if the company belongs to the service sector.

A company is divided according to the following conditions: if the company’s activity is based on trade, then 51% of the company belongs to a local sponsor, while 49% is given to a foreigner. However, 100% of the shares are owned by a foreigner, and the local sponsor receives an annual monetary compensation within the framework of agreements reached between the partners at the phase of beginning a business.

The primary benefits of registering an LLC

If foreign businessmen want to register their business in Dubai, they will receive a number of advantages:

  • The first is the absence of most kinds of taxes;
  • As mentioned earlier, – the reliability of the banking system. Easy access to both local and international bank accounts;
  • An important factor is also the stability of the national currency exchange rate;
  • An individual will receive protection from the state from mergers or acquisitions of companies;
  • Full data confidentiality is guaranteed;
  • Firms opened in the free zone have a simplified financial reporting;
  • The company can operate both in the domestic market of the United Arab Emirates and abroad, if this is provided for by the Founding Agreement;
  • The possibility of obtaining a visa for foreign investors and their family members;
  • Another advantage is the favorable geographical location.

Due to the lack of a public register in the Emirates, data on the owners of companies are not disclosed. In order to avoid double taxation, the UAE government has concluded bilateral agreements with other countries.

When opening an LLC, there are no strict requirements for the size of the authorized capital, besides, the cost of real estate is more affordable than in the free zone.

Rules of operation when registering an LLC in the UAE

Before starting the entire procedure, you must obtain a permit and license to conduct business in the UAE.

An LLC must have an address that must be registered directly on the territory of the Emirates in order to send notifications and correspondence.

An LLC must have a trade name associated either with the name of one or more partners, or with the goals of the company. In addition, the designation “LLC” must be present in the name. 

The company should be managed by managers (from 1 to 5) appointed either in the Founding Agreement or at the General Meeting of Partners.

After registering your company, the next thing you need to do is open a bank account in any bank in Dubai. A bank account provides a number of advantages, which were mentioned earlier. It is also worth noting the fact that the government does not control the conduct of foreign exchange transactions, so you can withdraw and import capital without restrictions.

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