LLC Opening Cost in Dubai, UAE - 2025: Complete Guide
Understanding LLC setup costs helps entrepreneurs budget effectively for their Dubai business
Dubai remains one of the most attractive business hubs globally, with its strategic location, world-class infrastructure, and investor-friendly policies. Forming a Limited Liability Company (LLC) is among the most popular business structures for entrepreneurs looking to establish a presence in Dubai. However, understanding the full cost of opening an LLC in Dubai in 2025 is essential for accurate budgeting and smooth setup.
At One Desk Solution, we've helped hundreds of entrepreneurs navigate the LLC formation process. Our business setup services provide transparent pricing and expert guidance for mainland and free zone LLCs.
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What is an LLC in Dubai?
A Limited Liability Company (LLC) is a popular legal structure in Dubai that allows foreign investors to conduct business with limited liability protection. Key characteristics include:
- Ownership Structure: Traditionally requires 51% local ownership, but recent reforms allow 100% foreign ownership in certain sectors
- Liability: Shareholders' liability is limited to their capital contribution
- Minimum Capital: No longer required for most activities (except specific regulated sectors)
- Management: Can be managed by foreign partners despite local ownership requirements
- Market Access: Allows full access to UAE market and government contracts
2025 Update:
The UAE has expanded its 100% foreign ownership policy to more sectors, including e-commerce, technology services, and professional consulting. This reduces or eliminates the need for local sponsorship in qualifying activities.
Mainland vs. Free Zone LLC: Cost Differences
Choosing the right jurisdiction impacts your setup costs and business flexibility
| Feature | Mainland LLC | Free Zone LLC |
|---|---|---|
| Ownership | Local sponsor/service agent typically required | 100% foreign ownership allowed |
| Market Access | Unlimited UAE mainland market access | Limited to free zone and international trade |
| Licensing Authority | Department of Economic Development (DED) | Relevant Free Zone Authority |
| Office Space | Mandatory physical office with Ejari lease | Flexi-desk or office options available |
| Sponsor Fees | Local sponsor/service agent fees applicable | No sponsor required |
| Cost Range | AED 20,000 – AED 60,000+ | AED 15,000 – AED 50,000+ |
Detailed Breakdown of LLC Opening Costs in 2025
1. Trade Name Registration
- Cost: AED 600 to AED 2,000
- Notes: Must comply with UAE naming conventions
2. Initial Approval Fee
- Cost: AED 600 to AED 2,000
- Notes: Mandatory for all LLC setups
3. Memorandum of Association (MoA)
- Cost: AED 500 to AED 5,000
- Notes: Must be notarized in UAE
4. Business License Fee
- Cost: AED 10,000 to AED 50,000 annually
- Notes: Varies by activity type
5. Office Rent and Ejari Lease
- Cost: AED 15,000 to AED 50,000 annually
- Notes: Mandatory for mainland LLCs
6. Local Sponsor/Service Agent Fees
- Cost: AED 15,000 to AED 50,000 annually
- Notes: Mainland only
7. Visa and Immigration Costs
- Cost: AED 3,000 to AED 7,000 per visa
- Notes: Depends on number of employees
Get a Customized Cost Estimate
Our experts can provide a detailed breakdown based on your specific business needs:
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Office Space and Ejari Lease Costs
Office costs vary significantly by location and size
| Office Type | Estimated Annual Cost (AED) | Notes |
|---|---|---|
| Small office space | 15,000 – 25,000 | Suitable for startups |
| Medium office space | 25,000 – 40,000 | More space, better location |
| Premium office space | 40,000 – 50,000+ | Prime locations in business hubs |
| Free zone flexi-desk | 7,000 – 15,000 | Shared workspace option |
Local Sponsor or Service Agent Fees
For mainland LLCs that don't qualify for 100% foreign ownership, sponsorship arrangements are required:
| Sponsorship Type | Annual Fee (AED) | Notes |
|---|---|---|
| Local Sponsor (51% ownership) | 20,000 – 50,000 | Typically for commercial LLCs |
| Service Agent (10% ownership) | 15,000 – 30,000 | For professional LLCs |
| 100% Ownership Option | 0 | For qualifying activities under new laws |
Negotiation Tip:
Sponsor fees are often negotiable. Consider multi-year agreements for better rates. Our team can help you find reputable sponsors with transparent terms.
Visa and Immigration Costs
Visa costs depend on the number of employees and office size:
| Visa Type | Cost per Visa (AED) | Notes |
|---|---|---|
| Investor Visa | 5,000 – 7,000 | Includes medical and Emirates ID |
| Employee Visa | 3,000 – 6,000 | Includes medical and ID |
| Dependent Visa | 3,000 – 5,000 | For family members |
Additional Costs to Consider
- Government approvals: AED 1,000-5,000 (depending on activity)
- Document attestation: AED 1,000-3,000
- Bank account opening: AED 2,000+
- Insurance: AED 2,000-10,000 annually
- Accounting setup: AED 5,000-15,000 annually
Cost Comparison Table: Mainland vs. Free Zone LLC
| Cost Item | Mainland LLC (AED) | Free Zone LLC (AED) |
|---|---|---|
| Trade Name Registration | 600 – 2,000 | Included or 600 – 2,000 |
| Initial Approval | 600 – 2,000 | Included or 600 – 2,000 |
| MoA Drafting & Notarization | 1,000 – 5,000 | 1,000 – 3,000 |
| Business License | 15,000 – 50,000 | 10,000 – 40,000 |
| Office Rent & Ejari | 15,000 – 50,000 | 15,000 – 25,000 |
| Local Sponsor Fees | 15,000 – 50,000 | Not applicable |
| Visa Costs (per visa) | 3,000 – 7,000 | 3,000 – 7,000 |
| Total Estimated Setup Cost | 50,000 – 150,000+ | 30,000 – 80,000 |
Tips to Optimize Your LLC Setup Cost
For Mainland LLCs:
- Negotiate sponsor fees for multi-year agreements
- Start with smaller office space and upgrade later
- Apply for 100% ownership if your activity qualifies
- Bundle services through a business setup consultant
For Free Zone LLCs:
- Choose free zones with lower license fees
- Opt for flexi-desk instead of private office initially
- Compare visa packages included in setup costs
- Look for promotional offers on multi-year licenses
Professional Tip:
Consider your long-term business needs when choosing between mainland and free zone. While free zones may seem cheaper initially, mainland LLCs offer better local market access that could generate higher revenues.
Frequently Asked Questions
Q: Can foreigners own 100% of a mainland LLC in Dubai?
A: Yes, since 2021, many activities qualify for 100% foreign ownership under new laws. However, some sectors still require local participation.
Q: How much does the cheapest LLC setup cost in Dubai?
A: The most affordable options start around AED 15,000 in certain free zones with flexi-desk packages.
Q: Is the local sponsor fee refundable?
A: No, sponsor fees are annual payments for their services and are not refundable.
Q: Can I change from free zone to mainland later?
A: Yes, but it requires closing the free zone entity and setting up a new mainland LLC, which incurs additional costs.
Q: How long does LLC formation take in Dubai?
A: Typically 2-4 weeks for free zones, 4-6 weeks for mainland, depending on document processing.
Ready to Start Your LLC?
Our team can handle your complete LLC formation with guaranteed approval:
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Conclusion
Opening an LLC in Dubai in 2025 involves multiple costs that vary widely depending on your business activity, location, and company size. Key takeaways include:
- Mainland LLCs provide unrestricted market access but come with higher setup costs (AED 50,000-150,000+) due to office and sponsor requirements
- Free zone LLCs offer more affordable options (AED 30,000-80,000) with 100% ownership but limited local market access
- New reforms allow 100% foreign ownership in many sectors, reducing or eliminating sponsor fees
- Office costs represent a significant portion of expenses, especially for mainland companies
- Smart planning can optimize costs without compromising business objectives
At One Desk Solution, we provide transparent pricing and expert guidance for both mainland and free zone LLC formations. Our business setup services handle everything from licensing to visa processing, ensuring a smooth and cost-effective setup process.
Take the Next Step
Contact our experts today for a personalized LLC setup plan:
Phone: +971-52 797 1228
Email: info@onedesksolution.com
Office Visit: Book a consultation at our Dubai office
