UAE LLC: How a Foreign Owner Forms a Mainland Company
Updated October 2026 · Reviewed by Amir Aslam, founder of First Idea Consultant (founded 2015)
Short answer
A UAE LLC (limited liability company) is the usual company form on the UAE mainland. It is governed by Federal Decree-Law No. 32 of 2021 on Commercial Companies, can have one owner or up to 50, and each owner is liable only up to their share of the capital. Since 2021 most activities allow full foreign ownership, so an American or any other foreign national can usually own all of a mainland LLC without an Emirati partner. In Dubai the licence comes from the Department of Economy and Tourism (DET). A free zone LLC (FZ-LLC) is a different licence, issued by a free zone authority.
What is a UAE LLC?
The Commercial Companies Law allows five company forms (Article 9). For a business owned by one person or a few people, the LLC is the usual choice: it limits liability and keeps management simple.
Article 71 of Federal Decree-Law No. 32 of 2021 defines an LLC as a company of no fewer than 2 and no more than 50 owners, called partners, each liable only up to their membership interest in the capital. The same article lets one person, an individual or a company, form and own an LLC alone.
The name must end with “Limited Liability Company” or “LLC” (Article 72). A single-owner company carries the owner’s name and the words “Sole Proprietorship with Limited Liability”, which people often call a one person LLC. The law sets no fixed minimum capital: the capital must be enough for the company’s purpose, unless the Cabinet sets a minimum (Article 76).
One person LLC
One individual or one company holds all the shares. It suits a solo consultant or trader, or a foreign parent company that wants a UAE subsidiary.
Multi-owner LLC
2 to 50 partners hold shares of equal value. The memorandum of association sets how disputes between partners are settled (Article 73).
Managers
One or more managers run the company. They can be partners or outsiders and are named in the memorandum of association (Article 83). Many foreign owners appoint themselves.
Yearly audit
Every LLC must have at least one auditor to audit its accounts each year, and must prepare annual accounts under international accounting standards (Article 27).
UAE LLC vs free zone LLC vs US LLC
Americans often assume a “UAE LLC” works like an LLC in Delaware or Wyoming. It does not. The US column is a general summary for comparison, not tax or legal advice.
| UAE mainland LLC | Free zone LLC (FZ-LLC) | US LLC (for comparison) | |
|---|---|---|---|
| Who licenses it | The emirate’s economic department, for example the Department of Economy and Tourism (DET) in Dubai | The free zone authority, for example IFZA or Meydan Free Zone | The state where it is formed |
| Rules it follows | Federal Decree-Law No. 32 of 2021 on Commercial Companies | The free zone’s own regulations; the federal law applies where they let the company work outside the zone (Article 5) | The state LLC statute and the operating agreement |
| Where it can trade | Anywhere in the UAE and abroad, within its licensed activities | Inside its zone and abroad; selling on the mainland usually needs extra approval, a distributor or a mainland licence | Its home state, and other states once registered there |
| Foreign ownership | Up to 100% for most activities; a short list of strategic activities is restricted | Up to 100% | No citizenship or residence rule for owners |
| Office | Physical premises with a lease; in Dubai the lease is registered with Ejari | A flexi-desk or office in the zone, depending on the package | A registered agent address in the state is usually enough |
| Residence visas | The company can sponsor the owner and staff; the number usually depends on the office | Within the visa allocation of the package | None: a US LLC gives no right to live in the US |
| Tax where it is formed | UAE corporate tax: 0% up to AED 375,000 of taxable income, 9% above | The same corporate tax law; a qualifying free zone person can get 0% on qualifying income | By default the IRS treats a one-owner LLC as disregarded and a multi-owner LLC as a partnership, unless it elects otherwise on Form 8832 |
| Yearly upkeep | Licence renewal, audited accounts, corporate tax return within 9 months of year end | Licence renewal, accounts as the zone requires, corporate tax return | State annual report or fee where required, and federal returns |
US column: general information from irs.gov. How the IRS treats a UAE company that you own is a separate question, covered in the tax section below.
Can a foreigner own a UAE LLC?
Yes, for most activities. Federal Decree-Law No. 26 of 2020, later consolidated into Federal Decree-Law No. 32 of 2021, removed the old rule that an Emirati had to hold 51% of a mainland company. The UAE government portal confirms that most activities no longer need an Emirati shareholder or a local agent, and that branches of foreign companies no longer need a UAE national service agent.
The law lets the Cabinet name activities of “strategic impact” and set extra licensing conditions for them, which can include limits on foreign ownership (Article 10). The u.ae page lists these areas as not open to full foreign ownership:
Not open to full foreign ownership (u.ae, checked 8 October 2026)
- •Security, defence and activities of a military nature
- •Telecommunications
- •Banks, exchange, financing, insurance, and bank note or coin production
- •Commercial agencies
- •Hajj and Umrah organising
- •Holy Quran recitation institutes
- •Fishing, natural pearl and marine animal catching
The rules are the same for US citizens as for other foreign nationals; nationality matters more at the bank, where US persons fill in extra tax forms. The licensing department confirms your activity at the initial approval stage, and our Dubai mainland licence guide explains how activities are chosen.
Dubai LLC or UAE LLC: is there a difference?
Not in the legal form. A Dubai LLC is a UAE LLC licensed in Dubai. Federal Decree-Law No. 32 of 2021 governs it, with the same rules on partners, managers, liability and the yearly audit in every emirate.
What differs is the licensing emirate. In Dubai, the Department of Economy and Tourism (DET) approves the trade name, the activity and the licence, and the office lease is registered with Ejari. In another emirate, that emirate’s economic department does the same job under its own fees and office rules. So LLC company formation in Dubai means a UAE LLC with a Dubai trade licence.
If Dubai is settled, our Dubai mainland licence guide covers the DET steps in more detail.
How to form a UAE LLC, step by step
The mainland process from the u.ae portal, in plain terms, for Dubai. Abu Dhabi and the other emirates follow the same pattern through their own Department of Economic Development.
- 1
Choose your business activity
Pick your activities from the official list of more than 2,000. The activity decides the licence type (commercial, professional or industrial), whether another regulator is involved, and what kind of office you need.
- 2
Settle the legal form and the owners
Decide between a one person LLC and a multi-owner LLC, the share split and who will be manager. If a US or other foreign company will hold the shares, its corporate documents are needed from this point.
- 3
Reserve the trade name
The name has to meet the naming rules and include the legal form, such as LLC. We usually submit two or three options in case the first is taken.
- 4
Get initial approval
DET issues an initial approval, which shows the authorities have no objection to the company being formed. It does not yet allow you to trade.
- 5
Sign the memorandum of association
The owners sign the memorandum of association, which states the capital, the shares, the managers and how disputes are settled. Owners abroad can often sign through an attested power of attorney instead of flying in for this step.
- 6
Lease an office and register it with Ejari
A mainland company needs premises. In Dubai the tenancy contract must be registered with Ejari, and the size of the office usually affects how many visas the company can sponsor.
- 7
Obtain any external approvals
Some activities need a sector regulator’s approval, for example health, education or food. Many consulting and trading activities need none.
- 8
Pay the fees and collect the licence
DET issues a payment voucher, which must be paid within 30 days or the application is cancelled. Once it is paid, the trade licence is issued and the company exists.
- 9
Visa, Emirates ID and bank account
With the licence and the immigration establishment card, the company can apply for the owner’s residence visa. That needs a medical test and an Emirates ID. The corporate bank account comes next, and most banks want to meet the owner.
How long does each stage take?
| Stage | Handled by | Typical time |
|---|---|---|
| Activity, name and initial approval | DET in Dubai, or the emirate’s economic department | Often 1 to 3 working days |
| Memorandum of association | The owners, with a notary or through DET | A few days; longer if papers from abroad need attestation |
| Office lease and Ejari | Landlord and Ejari | Often within a week, depending on the office |
| External approvals, if any | The sector regulator | From a few days to several weeks |
| Licence payment and issue | DET | Voucher paid within 30 days; issue usually follows soon after |
| Residence visa, medical test and Emirates ID | GDRFA Dubai and ICP | Often 1 to 3 weeks after the licence |
| Corporate bank account | The bank | Often 2 to 6 weeks, subject to the bank’s review |
Typical times from our own files, not promises: they vary with the activity, the documents and each authority’s workload. Only the 30-day payment window is fixed (u.ae).
What documents do you need?
For an individual owner the core file is short. The licensing department and the bank may ask for more, depending on your activity and background.
- Passport copy of every owner and manager, valid for at least 6 months
- A recent passport-style photo
- Your UAE visa or entry stamp, or Emirates ID, if you are already in the UAE
- Two or three proposed trade names
- The list of business activities
- Memorandum of association, drafted for signature
- Tenancy contract and Ejari certificate for the office
- Any external approval your activity needs
- For a company owner: certificate of incorporation, articles or operating agreement, board resolution and power of attorney, legalised for use in the UAE
- Proof of address and a short CV or business plan, which banks usually ask for
Notes for American owners
- US company papers, such as a certificate of good standing, usually need legalising before UAE authorities accept them: an apostille or notarisation in the US, then UAE embassy and Ministry of Foreign Affairs attestation, depending on the document. Check the route with us before you order anything.
- A power of attorney signed in the US needs the same treatment. It lets someone in Dubai sign the memorandum of association and deal with the authorities for you.
- Banks ask US persons for extra tax forms, often an IRS Form W-9, because of US reporting rules. Have your US tax ID number ready.
Bank account opening is subject to the bank’s KYC, compliance review and final approval.
What does a UAE LLC cost?
Our published price sheet covers free zone packages only (IFZA and Meydan). It does not cover mainland or LLC formation, so we do not print an LLC price here. The cost of a mainland LLC depends on the activity, the office, the number of visas and any external approval, and we quote it in writing once we know those.
These are the cost lines a mainland LLC usually has, so you can compare quotes line by line:
| Cost line | Paid to | What sets the amount |
|---|---|---|
| Trade name and initial approval | DET (government fee) | DET’s published fee schedule |
| Trade licence issue | DET (government fee) | The activity and licence type |
| Memorandum of association | Notary or DET (government fee) | The number of owners and documents |
| Office rent and Ejari registration | Landlord and Ejari | Location and size |
| External approvals | Sector regulator (government fee) | Only if your activity needs one |
| Establishment card, residence visas, medical tests and Emirates ID | GDRFA, ICP and the health authority (government fees) | The number of visas |
| Corporate bank account | The bank | Each bank’s own minimum balance and charges |
| Yearly audit and bookkeeping | Your auditor and accountant | The volume of transactions |
| Our professional fee | First Idea Consultant | Quoted in writing before you start |
Send us your activity, the number of owners and visas, and whether you need an office. We reply usually within a couple of hours with a written quote. If a free zone fits your plan better, the package prices below are fixed and published, and our Dubai free zone licence guide compares the zones.
Tax: UAE corporate tax and US rules
In the UAE
- Corporate tax applies to financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%, as the Ministry of Finance confirms.
- Every taxable person, mainland or free zone, must register for corporate tax with the Federal Tax Authority and get a tax registration number. A return is due within 9 months of the end of each tax period, even when no tax is payable.
- There is no personal income tax on individuals. VAT is charged at 5%, and whether your company must register for VAT depends on its turnover, so check the Federal Tax Authority’s rules.
For US citizens and green card holders
- The IRS taxes US citizens and resident aliens on worldwide income wherever they live, so moving to Dubai does not end US filing.
- The foreign earned income exclusion can cover pay you earn abroad if you meet the bona fide residence test or the physical presence test (at least 330 full days abroad in 12 consecutive months). It covers earned income only, and you claim it on a filed return.
- Owning a UAE company adds US reporting. Certain US shareholders, officers and directors of foreign corporations file Form 5471, and UAE bank accounts above the reporting threshold go on an FBAR.
- An eligible foreign company can choose its IRS classification on Form 8832 (corporation, partnership or disregarded entity). That choice changes how profits reach your US return, so settle it with a US tax adviser before you form the company.
This is general information, not tax advice. We handle the UAE side. For US filings, speak to a US tax adviser who works with Americans abroad.
After formation: renewals, Ejari, accounts and corporate tax
Licence renewal
The trade licence is renewed with DET every year. Keep the Ejari lease current, because renewal usually needs a valid lease.
Corporate tax registration
Register with the Federal Tax Authority soon after the licence is issued, because late registration can bring a penalty. File the return within 9 months of each year end.
Audited accounts
Keep books under international accounting standards and have them audited every year, as Article 27 of the Commercial Companies Law requires of every LLC.
Register of partners
Keep a register of partners at the head office and send its details to the authorities each January (Article 74).
Visas and Emirates ID
Track renewal dates for the establishment card, each residence visa and Emirates ID. A sponsored residence visa is issued for 1, 2 or 3 years.
Green visa option
Investors and partners who meet the conditions can apply for a 5-year green visa, which needs no sponsor. In Dubai, GDRFA issues it against a valid trade licence and the partnership papers.
How we help foreign owners
First Idea Consultant has formed companies in Dubai since 2015. For a mainland LLC we check your activity, draft the memorandum of association, find an office that fits your visa plan, file with DET, run the visa and Emirates ID steps and prepare your bank file. If a free zone suits you better, we say so. For the wider picture, see our overview of company registration in Dubai, and see our bank account service for the banking side.
Moving to Dubai as well? Read whether Americans can live in Dubai and whether Americans need a visa for Dubai before you book flights.
Ready to form your UAE LLC?
Tell us your activity, how many owners and visas you need, and where you live now. We reply usually within a couple of hours with the route, the document list and a written quote.
UAE LLC: frequently asked questions
Short answers for foreign owners, checked against official sources in October 2026.
What is a UAE LLC?
A UAE LLC is a limited liability company formed on the UAE mainland under Federal Decree-Law No. 32 of 2021 on Commercial Companies. It can have one owner or between 2 and 50 partners, and each owner is liable only up to their share of the capital. The economic department of the emirate licenses it, which in Dubai is the Department of Economy and Tourism.
Can an American own an LLC in the UAE?
Yes. For most activities a US citizen can own 100% of a mainland LLC with no Emirati partner. A short list of strategic activities, such as banking, insurance, telecommunications and defence, stays restricted. Americans should also plan for US tax reporting, because the IRS taxes citizens on worldwide income.
How do I start an LLC in Dubai?
Choose your activity, reserve a trade name, get initial approval from the Department of Economy and Tourism, sign the memorandum of association, lease an office registered with Ejari, obtain any external approvals, then pay the fees and collect the licence. The residence visa, Emirates ID and corporate bank account follow.
How much does it cost to register an LLC in Dubai?
It depends on the activity, the office and the number of visas. Our published price sheet covers free zone packages only and does not include mainland LLC formation, so we quote an LLC in writing once we know your plan. Government fees are paid to the Department of Economy and Tourism and the other authorities involved.
What is the difference between a UAE LLC and a free zone company?
A mainland LLC is licensed by the emirate’s economic department and can trade anywhere in the UAE. A free zone company, including an FZ-LLC, is licensed by a free zone authority under that zone’s rules and usually needs extra approval or a distributor to sell on the mainland. Both can be fully foreign owned, and both fall under UAE corporate tax.
Does a UAE LLC pay corporate tax?
Yes, it must register for corporate tax. Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%, for financial years starting on or after 1 June 2023. The return is due within 9 months of the end of each tax period.
Do I need a local sponsor for a UAE LLC?
Not for most activities. The rule that an Emirati must hold 51% and the local agent requirement were removed for most activities from 2021. Some strategic activities still have ownership limits, and the licensing department confirms the position for your activity at the initial approval stage.
Can I form a UAE LLC without moving to Dubai?
Much of the process can run through a power of attorney while you stay abroad. The residence visa needs your medical test and Emirates ID biometrics in the UAE, and most banks want to meet the owner, so plan at least one trip.
Official sources, checked on 8 October 2026
- u.ae: Full foreign ownership of mainland companies
- u.ae: Steps to start a business on the mainland
- u.ae: Starting a business in a free zone
- moet.gov.ae: Establishing companies
- Federal Decree-Law No. 32 of 2021 on Commercial Companies, English text published by RAKEZ
- Ministry of Finance: Corporate tax in the UAE
- Ministry of Finance: corporate tax rates and the AED 375,000 threshold
- Federal Tax Authority
- u.ae: General provisions for the residence visa
- u.ae: Green visa for investors and partners
- GDRFA Dubai: Green residence permit for a partner or investor
- IRS: US citizens and resident aliens abroad
- IRS: Foreign earned income exclusion
- IRS: About Form 5471
- IRS: About Form 8832
- IRS: Limited liability company (LLC)