Dubai continues to attract global entrepreneurs, thanks to its tax-friendly system, investor-friendly policies, and fast-growing economy. One of the most popular business structures in the UAE is the Limited Liability Company (LLC). But before starting, every investor asks the same question: What is the real LLC cost in Dubai in 2025?
Why Choose an LLC in Dubai for Business Setup?
An LLC is one of the most flexible and widely preferred company structures in Dubai. It suits both small startups and established businesses looking to expand. Let’s look at the reasons why:
1. Benefits of LLC structure in Dubai
- Full access to the UAE market and the ability to trade locally.
- Option to operate across multiple sectors.
- Easier banking, visa processing, and compliance.
- Strong credibility when dealing with clients and government authorities.
2. Flexibility in business activities
Unlike many free zones where business activities are restricted, an LLC allows you to conduct a wide range of commercial and professional activities. This flexibility makes it easier to diversify services and expand into new markets.
3. Investor protection and ownership structure
Previously, LLCs required a local UAE partner holding 51% ownership. However, under the new UAE laws, most sectors now allow 100% foreign ownership. This has made LLC formation more attractive for global investors who want full control of their companies.
4. Comparison with Free Zone companies
Free zone setups are popular because of their tax benefits and ease of registration, but they often come with limitations. A free zone company cannot directly trade within the Dubai mainland without a local distributor, while an LLC offers unrestricted business operations across the UAE market.
Key Factors That Affect LLC Cost in Dubai
The LLC cost in Dubai is not fixed; it varies depending on several factors. Understanding these will help you estimate your expenses more accurately.
1. Type of business activity
Costs differ based on whether you are setting up a commercial, professional, or industrial LLC. For example, a general trading company may have higher fees compared to a small consultancy.
2. Mainland vs. Free Zone LLC setup
- Mainland LLC: Allows trade across Dubai and the wider UAE. It often requires higher setup costs, especially for office rent and approvals.
- Free Zone LLC: Usually more affordable with package deals, but comes with trading restrictions outside the free zone.
3. Office space requirements
Dubai requires a registered office address for mainland LLCs. Renting a physical office in prime locations can be costly, whereas co-working or virtual offices (Ejari) are cheaper options.
4. Number of visas required
Visa costs add up depending on the number of employees you plan to sponsor. Investor visas, employee visas, and dependent visas each carry separate fees.
5. Government fees and approvals
Every business must pay fees for name registration, licensing, and documentation approvals. Certain industries (healthcare, legal, construction, etc.) may also require additional government approvals.
Breakdown of LLC Company Formation Cost in Dubai
To give you a clearer picture, let’s explore the most common cost components.
1. Company Registration Fee
When registering your LLC, you’ll pay government charges for company name reservation and initial approval.
- Estimated cost: AED 8,000 – AED 12,000 (one-time)
2. Trade License Fee
Every LLC needs a valid trade license to operate legally. Costs vary depending on license type:
- Commercial License: For trading businesses
- Professional License: For consultancy and services
- Industrial License: For manufacturing or production activities
- Estimated cost: AED 10,000 – AED 15,000 annually
3. Office Rent or Business Address Fee
A registered office address is mandatory for mainland LLCs.
- Physical office rent: AED 15,000 – AED 30,000 annually (varies by location)
- Virtual office/Ejari: More affordable option for startups
4. Notarization of Memorandum of Association (MOA)
The MOA defines the company’s structure, ownership, and business activities. It must be notarized by a legal authority.
- Estimated cost: AED 2,000 – AED 5,000 (one-time)
5. Share Capital Requirement
Earlier, LLCs required a minimum share capital of AED 300,000. Today, most business activities no longer demand a fixed amount, but some regulated sectors may still have requirements.
- Note: You don’t always need to deposit the amount in a bank; it can be declared as “stated capital.”
6. Employment Visa and Residency Costs
- Investor Visa: AED 4,000 – AED 6,000
- Employee Visa: AED 3,500 – AED 7,000 per person
Visa quotas depend on your office size and license type.
7. Additional Costs (If Applicable)
- Bank Account Opening: Some banks charge processing fees
- PRO Services/Consultancy Fees: AED 3,000 – AED 6,000 if you hire experts for documentation and approvals
Estimated LLC Cost in Dubai 2025
To simplify your planning, here’s a clear breakdown of the most common expenses involved in setting up an LLC in Dubai. Keep in mind that actual costs can vary depending on your business activity, office space, and visa needs.
| Expense Category | Estimated Cost (AED) | Notes |
| Company Registration | 8,000 – 12,000 | One-time government fee |
| Trade License | 10,000 – 15,000 | Annual renewal required |
| Office Rent (Ejari) | 15,000 – 30,000 | Annual, depends on location |
| MOA Notarization | 2,000 – 5,000 | One-time legal fee |
| Visa (per person) | 3,500 – 7,000 | Annual renewal |
| Misc. PRO/Consultancy Fees | 3,000 – 6,000 | Optional but recommended |
This table reflects the average LLC cost in Dubai 2025, helping you estimate the minimum and maximum budget required.
Comparing Mainland vs Free Zone LLC Costs in Dubai
Many entrepreneurs struggle to choose between a mainland LLC and a free zone LLC. Both options come with their own benefits and cost structures.
1. Mainland LLC Cost Structure
- Local sponsor requirements: In most cases, you can enjoy 100% foreign ownership today. However, some regulated industries may still require a local partner.
- Flexibility in office location: You must rent a physical office on the mainland, which often increases overall costs compared to free zones.
- Visa quotas: Your visa quota depends on the size of your office. Larger offices allow more visas.
2. Free Zone LLC Cost Structure
- 100% foreign ownership: No need for a local partner across most free zones.
- Package-based setup costs: Free zones often offer cost-effective packages, sometimes including licenses, visas, and office space in a single fee.
- Restrictions on business scope: You can’t directly trade in the UAE mainland without a local distributor.
LLC Renewal Costs in Dubai
Setting up your LLC is just the beginning. You’ll also need to consider annual renewal fees to keep your business compliant.
- Trade license renewal fees: AED 10,000 – AED 15,000 annually.
- Visa renewal charges: AED 3,500 – AED 7,000 per visa.
- Ejari and tenancy renewals: Annual renewal for your office lease or co-working space.
- Hidden costs: Delays in renewals can result in penalties, so it’s important to stay updated with due dates.
How to Reduce LLC Cost in Dubai Without Compromising Quality
While Dubai is known for high living standards, setting up a company doesn’t always have to be expensive. With the right strategy, you can reduce costs without affecting business quality.
- Choosing the right business activity: Select only the activities you need to avoid extra approval costs.
- Opting for co-working or flexi-desk office spaces: Affordable solutions that still meet legal requirements.
- Using consultancy services for cost optimization: Professional advisors help you avoid unnecessary expenses.
- Free zone packages vs. mainland setup: For startups with limited budgets, free zone packages can be a cost-effective starting point.
How Ripple Business Setup Can Help You Save on LLC Costs
Starting your business in Dubai doesn’t have to be stressful or expensive. At Ripple Business Setup, we simplify the process with transparent pricing and expert guidance.
- Professional advice on the right company structure.
- Full cost breakdown with no hidden fees.
- End-to-end support, including licenses, visas, offices, and bank accounts.
- Faster approvals to save time and money.
📞 Contact Ripple Business Setup:
Call: +971 50 593 8101 | Email: info@ripplellc.ae | Website: www.ripplellc.ae
FAQ
1. How much does an LLC cost in Dubai per month?
On average, if you spread the annual setup and operating costs, an LLC in Dubai may cost between AED 3,000 – AED 6,000 per month, depending on license type and office rent.
2. What is the cheapest LLC setup option?
Free zone packages often provide the cheapest solutions, with setup costs starting from AED 12,000 – AED 15,000 for basic packages.
3. Is there a minimum capital requirement for LLCs?
No fixed share capital is required for most LLCs in 2025, though some regulated industries may still have conditions.
4. What is the LLC license renewal fee in Dubai?
Renewal fees usually range between AED 10,000 – AED 15,000 annually, depending on license type.
5. Can I set up an LLC without a physical office?
For mainland LLCs, a physical office or Ejari lease is mandatory. Free zones, however, allow virtual offices or flexi-desk packages.
Conclusion
Setting up an LLC in Dubai may seem costly at first, but the benefits outweigh the expenses. From gaining full access to the UAE market to enjoying tax-friendly policies, an LLC is one of the best investments for entrepreneurs.
Over the long term, businesses save money on taxes, expand quickly in a growing economy, and enjoy strong credibility in both local and international markets. That’s why the LLC remains the most popular business structure in Dubai.
Disclaimer: The information provided in this article about LLC cost in Dubai is for general guidance only. Actual costs may vary based on business activity, location, and government regulations. Always consult with a licensed business setup advisor before making decisions.