Can Expats Open an LLC in Dubai? Full Ownership Explained
If you’re exploring business setup UAE options and wondering whether an expat can fully own a Limited Liability Company (LLC) in Dubai, the good news is: yes, it’s possible. Recent changes in UAE regulation have made it easier for expatriate entrepreneurs to start and control their own companies. This article thoroughly explains what those changes mean and how you can benefit from 100% business ownership in Dubai.
Understanding Business Setup UAE Laws for Expats
Prior to 2020, setting up a mainland LLC in Dubai required a local Emirati partner holding 51% of the business. However, with the introduction of the Federal Decree-Law No. 26 of 2020, many business activities now allow full foreign ownership. This has made business setup UAE a more attractive option for international investors and entrepreneurs.
What Is an LLC in Dubai?
A Limited Liability Company (LLC) is one of the most popular legal structures for those looking to start a business in Dubai. It allows business owners to operate within both mainland and Free Zones. An LLC requires a minimum of 2 and a maximum of 50 shareholders, with liability limited to the extent of their shareholdings.
Can Expats Really Own 100% of an LLC in Dubai?
Yes, expats can now enjoy 100% ownership of many business types registered as an LLC in Dubai. This change applies mainly to mainland companies and is dependent on the business activity selected. The government, through the UAE Government Portal, publishes an updated list of activities eligible for full foreign ownership.
Eligible Business Activities for Full Ownership
- Manufacturing and industrial activities
- Some professional and service-oriented businesses
- Certain commerce and trade operations
- Consultancy companies under specific activities
Before launching your company, make sure your planned activity is listed in the approved categories.
Business Setup UAE: Key Benefits of Full Ownership
Changes in ownership laws have made Dubai even more appealing. Here are some reasons to consider setting up an LLC as a foreign owner:
- Full control over business decisions
- Profits are entirely yours
- No requirement for a local nominee shareholder
- Access to the UAE mainland market
- Eligibility for investor visas
Steps to Open a 100% Foreign-Owned LLC in Dubai
Follow these key steps for an efficient business setup UAE process:
- Choose your business activity: Make sure it’s eligible for 100% foreign ownership.
- Select a trade name: It must conform to UAE naming regulations.
- Apply for initial approval: From the Department of Economic Development (DED).
- Draft the Memorandum of Association (MOA): This outlines shareholder roles, structure, and capital.
- Lease office space: A tenancy contract is required to obtain the license.
- Get your business license: Submit all documents to the DED for final approval.
Choosing Between Mainland and Free Zone
For many expats, deciding between Dubai mainland or Free Zones is crucial. Here’s a simplified comparison:
| Criteria | Mainland | Free Zone |
|---|---|---|
| Ownership | 100% for selected activities | 100% for all businesses |
| Market Access | Full UAE market | Limited to Free Zone unless with local agent |
| Office Requirements | Mandatory | Flexible/shared spaces available |
Key Benefit of Mainland LLC
With full foreign ownership now allowed, mainland LLCs combine the best of both worlds: total control and unrestricted market access.
Costs Involved in Business Setup UAE
Establishing an LLC in Dubai involves various costs:
- License fees: Depending on business activity
- Office rent: Based on location and size
- Local approvals: May apply for relevant authorities
- Visa processing: Including medical and Emirates ID
For tips to minimize expenses, read our guide on reducing business registration costs in Dubai.
Documents Required to Register an LLC in Dubai
When registering your company, make sure to have the following documents ready:
- Passport copy of the owner/shareholders
- Visa and Emirates ID copies (if applicable)
- Name reservation certificate
- Initial approval certificate from DED
- MOA notarized by authorized service centers
- Tenancy contract (Ejari certificate)
Licensing and Legal Compliance
After your company is registered, it’s essential to stay compliant:
- Renew business licenses annually
- File VAT returns if your turnover exceeds AED 375,000
- Keep corporate records up-to-date
Read our full guide on avoiding fines when renewing your trade license.
Business Setup UAE: Advisory for Expats
While laws now permit expats to form an LLC without a UAE national sponsor, expert consultation is highly recommended. A local business advisor can ensure that you:
- Choose the right activity code
- Avoid unnecessary paperwork
- Navigate the licensing process efficiently
Final Thoughts
Thanks to recent legal reforms, business setup UAE for expats is now more accessible than ever. If your chosen activity is on the approved list, you can enjoy 100% foreign ownership, mainland market access, and the prestige of operating from Dubai. With the right guidance and proper planning, setting up an LLC in Dubai can be a strategic step toward long-term business success.
For more detailed insights into different license categories, check out our guide on types of trade licenses in Dubai.
Start your journey today and transform your entrepreneurial vision into a thriving business in the heart of the UAE.
