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Company Registration in Dubai

Dubai Limited Liability Company Formation Procedures

The formation of a company in Dubai is an easy process. Suppose you are looking for how to incorporate a limited liability company. In this article, We will look into the process of forming a company in Dubai.

A limited Liability Company (Limited Liability Company) is a business venture which is commercial in nature with a maximum of 50 shareholders. Limited Liability Company is the most common form of business venture in Dubai and also the most popular and commonly chosen route to conduct business in Dubai. Therefore, it is important for you to understand the Limited Liability Company Formation Procedures

The Process to Form a Limited Liability Company

Here are the processes of formation of a company in Dubai in a few easy and simple steps –

1. Identify the Business Activity

 It is very important to identify the business activity at an early stage of forming a company to conduct business operations in Dubai. A licence is required, which can be a professional licence, trading licence or industrial licence for a manufacturing Unit. Dubai offers a licence for more than 2000 business activities across different sectors.

Your Limited Liability Company Formation can conduct multiple business activities subject to prior approval through a licence. Getting a licence ensures that your Limited Liability Company Formation follows corporate governance and avoids any litigation on your business. Some business activities may require additional approvals from local or federal government authorities. These may include legal affairs, security, financial securities and commodities.

2. Register a Name for Your Limited Liability Company

Register a name for your Limited Liability Company, which doesn’t give the impression that it is likely associated with the government or any political party. Such a name shall not resemble any other company already registered, or a registered trademark, a language having an impression of any government authorities, including any regulator. Such a name shall be approved prior to making an application for registration. 

There are several steps required for Limited Liability Company formation in Dubai between receiving an initial approval and collecting a final approval, including documentation, attestations, lease agreements for office space, and payment of legal fees. Once you get done with all, a licence will be issued in response to start running for business. Remind you this is just a licence to conduct your business affairs. You will be additionally required to obtain the Certificate of Incorporation to start your Limited Liability Company.

3. Memorandum Of Association (MOA)

A Memorandum of Association (MOA) is a legal document of a company stating the object, Capital, place of business, liability or other relevant Clauses. For a Limited Liability Company to be incorporated in Dubai, MOA should be notarised from Notary Public. Clauses of MOA ensure that the external dealing of the Limited Liability Company is within the framework as laid down in MOA and protects the Company from avoidable litigations. It is advisable to draft MOA from an experienced legal team. 

4. Make an Application for Initial Approval

After the first two steps, make a written application to the registrar of Companies, who shall examine the validity and automation of the document filed with them. After due examination of the documents, the registrar shall issue a Certificate of Incorporation, meaning that the company have gained legal status in UAE and the members hold a limited interest to the extent paid up in the equity of the Company.

The documents may include a notarized Memorandum of Association, lease agreement of office space, a written representation by the persons acting as the directors of the company post-incorporation, along with a written representation by the shareholders that the funds invested in the company have been bought in UAE through approved legal routes. However, additional documents may be required in certain circumstances, and thus, It is advisable to consult a professional or lawyer.

5. Select a Place of Business

The place from where you conduct significant business activities, including conducting operation or management of the business. Such a lease agreement with the registrar. It is advisable to lease office space since most foreign businesses are conducted from free zones, and every free zone has different regulations in the place. If you are required to shift from one free zone to another, it would be more practical in case of a lease.

6. Apply For other Government Approvals

Since your Limited Liability Company will be intended to be funded by Foreign Direct Investment (FDI), prior approval from the government authorities will be required to move funds to Dubai. The approval will be based on a number of factors as follow –

  • The nature and size of your Business activities
  • Sector in which your business will operate
  • Foreign Currency Exchange regulations, if any at any

If the business you are investing in is regulated In UAE, you will be required to get prior approval from the sectorial regulator. Also, your business activities will be carried on with the regulations framed by the regulator.

7. Open a Bank Account

On the basis of the Certificate of Incorporation, the business bank account could easily be opened in the name of the company with any established corporate banks like Citi bank, HSBS etc. or with other domestic banks.

8. Get VAT Registration

Unlike India, If you are engaged in manufacturing or trading of goods or services, you will be required to get registration under VAT indirect tax through which you could make taxable supply and pass on the credit of tax to the buyers. It is compulsory to obtain VAT registration for foreign-run businesses in Dubai, subject to certain exemptions. 


Thus, you might have now got to know about the Limited Liability Company Formation. The business formed as a limited liability Company has always been a popular business form in Dubai. The investor’s fund in the business is highly protected as compared to other forms of business as the liability of the members is very limited in the equity of the company, and in the case of insolvency of the company, the members will be discharged from any further liability beyond what they agreed in Memorandum Of Association of the Company. 

For more legal information about the Limited Liability Company Formation, visit Vakilsearch!

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