Mainland LLC Company Formation In Dubai UAE

Mainland LLC Company Formation in Dubai, UAE

Simple, Secure and Fully Foreign Owned Business Structure

A Limited Liability Company is one of the most practical and widely used legal structures in Dubai Mainland. It suits trading businesses, service providers, professionals, and investors who want full operational freedom inside the UAE.

Let’s break it down in a clear way.

Shareholding Requirements

To form an LLC in Dubai Mainland, the law allows:

• Minimum 2 shareholders

• Maximum 50 shareholders

Shareholders can be individuals or corporate entities. Ownership percentage is defined in the Memorandum of Association. Earlier, foreign investors needed a local sponsor. Now that restriction has largely disappeared.

100 Percent Foreign Ownership

From 1st June 2021, the UAE introduced major reforms in commercial company law.

Here’s the thing:
Foreign investors can now hold 100 percent shares in an LLC for many approved commercial activities.

This change applies to designated sectors notified by the Department of Economic Development. It gives international entrepreneurs the confidence to enter Dubai without handing over ownership control.

Liability Protection

The biggest advantage of an LLC is legal safety.

• All liabilities are limited to the company itself

• Shareholders are not personally responsible for debts or losses

• Risk is capped to the extent of share capital invested

This structure separates business obligations from personal assets.

Minimum Capital Requirements

While incorporating an LLC in Dubai, typical capital norms are:

• Dubai Mainland LLC: Minimum capital of AED 300,000

• Other Emirates Mainland LLC: Minimum capital of AED 150,000

The capital amount can be increased depending on the nature and size of the business. Profit and loss sharing is flexible and decided mutually by shareholders.

Management of the Company

An LLC must appoint a Manager to handle operations.

• Manager can be a shareholder or a third party

• Powers and responsibilities are defined in MOA

• MOA is notarized by the Dubai Public Notary

• Day-to-day decisions, banking transactions, and contracts are managed by the appointed Manager

The Manager is fully accountable for compliance and lawful conduct of the business.

Activities Allowed Under LLC

Any legal commercial activity can be conducted through an LLC such as:

• General trading

• Import and export

• Manufacturing

• Consultancy

• Retail and wholesale services

• E-commerce

• Restaurants, salons, workshops and more

Activities Not Permitted

There are specific restrictions too.

An LLC cannot engage in:

• Insurance services

• Investment of money on behalf of others

• Commercial banking for third parties

• Issuing negotiable instruments representing shares

Special approvals are required if you plan to enter regulated fields.

Office Space Requirement

Physical presence is mandatory for mainland incorporation.

• Renting an office, warehouse, or shop is compulsory

• Virtual desk facilities are available for certain categories

• Trade licenses are linked to Ejari tenancy contracts

N D Savla UAE helps clients choose cost-effective office solutions to meet this requirement.

Branch Expansion

Once your LLC is active, you can grow easily.

• Branches can open within Dubai

• Branches allowed in other Emirates jurisdictions

• Additional trade names can be registered

• Multiple activities can be added with permissions

Banking and Credit Facilities

A Mainland LLC enjoys strong credibility with lenders.

• Eligible for bank accounts in UAE

• Can apply for overdraft, loans, and trade finance

• Credit facilities depend on lender approval

• Audit reports and financial statements support funding

Regulatory Approvals

Some business sectors need extra permissions beyond DED license.

Approving authorities may include:

• DHA for health activities

• KHDA for education

• RTA for transport

• DTCM for tourism

• Dubai Municipality for food and retail operations

Our firm coordinates the entire process so you don’t struggle between departments.

Visa Eligibility for Shareholders

One major attraction for expats:

• Foreign shareholders get 3-year residence visa

• Minimum shareholding of AED 72,000 capital is required

• Eligible to sponsor family, parents, and dependents

• Investor status gives long-term stability in UAE

Employment Flexibility

LLC companies can recruit freely.

• No cap on number of employees

• Approvals through Ministry of Human Resources

• Labour cards, contracts and WPS registration required

• Sustain HR compliance to avoid penalties

Liquidation Process

If you ever decide to close the company:

• Formal liquidation is required

• Final audit report from government registered audit firm

• Newspaper advertisements

• Visa cancellations

• Bank account closure

• Trade license deregistration

N D Savla UAE manages liquidation end-to-end.