Dubai now allows LLC Company to be formed by a single individual, making it an ideal business structure for entrepreneurs and investors looking to limit liability and maximize tax benefits.
A Limited Liability Company (LLC) is a legal entity that separates the owner from the company, ensuring that personal assets remain protected from any financial obligations incurred by the business.
How to Set Up a One-Person LLC Company in Dubai
This guide covers:
- What is a one-person LLC in Dubai?
- Ownership regulations for a one-person LLC
- Trade name rules for an LLC company
- Documents required for LLC registration
- Costs of setting up an LLC in Dubai
- Business setup with Dubai Business Service
What is a One-Person LLC Company in Dubai?
A one-person LLC is a Limited Liability Company where a single individual holds complete ownership and authority over business operations while benefiting from liability protection. Unlike a sole proprietorship, the owner of an LLC is not personally liable for company debts.
Dubai’s recent amendments to LLC regulations permit single ownership for commercial, industrial, and tourism activities, with the exception of consulting firms.
Benefits of a One-Person LLC:
- The owner can hire employees as needed.
- Personal assets remain separate from business assets.
- The business can be taxed as a sole proprietorship or corporation.
- Ownership can be transferred to family members or other individuals.
One-person LLCs adhere to the same regulatory framework as other LLC structures, including public and private shareholding company regulations.
Ownership Regulations for a One-Person LLC in Dubai
- Only UAE and GCC (Gulf Cooperation Council) nationals are eligible to own a one-person LLC.
- Foreign nationals residing in Dubai are not allowed to establish a one-person LLC.
- Corporate bodies can establish a one-person LLC, provided they are wholly owned by a UAE national.
Key Structural Points:
- The LLC owner holds full ownership and is also the company’s shareholder.
- A nominee director can be appointed, but they have no decision-making authority unless the owner is unable to engage in business transactions.
- A one-person LLC cannot issue equity funding or employee stock options.
- The owner must appoint a manager, who can be themselves or an external candidate.
- A company can appoint up to 11 managers, and any managerial changes must be reported to authorities within 30 days.
Trade Name Rules for an LLC Company in Dubai
The Dubai Department of Economic Development (DED) has established trade name regulations for one-person LLCs:
- The company name must include the owner’s name, business activity, and legal structure, followed by LLC. Example: Ali General Trading One-Person Co LLC.
- Two names can be used in the trade name, such as Ali Behrouz General Trading One-Person Co LLC.
- If the owner’s name is not first, the trade name must start with Owned by, e.g., Owned by Ali Behrouz General Trading One-Person Co LLC.
Documents Required for Setting Up an LLC Company in Dubai
To register an LLC company with the DED, the owner must submit the following documents:
- Attested copy of passport
- Proof of residential address
- Copy of appointed manager’s passport
- Personal details of the company owner
- A notarized Memorandum of Association
- Approved trade name registration
- Original identification documents of the owner
Costs of Setting Up an LLC Company in Dubai
The cost of setting up an LLC in Dubai ranges between AED 10,000 to AED 30,000, depending on factors such as:
- Business activity type
- Registration fees
- Office rental costs
- Government licensing fees
For an accurate quote, consulting an expert is recommended.
Business Setup with Dubai Business Service
Setting up an LLC company in Dubai can be complex, but Dubai Business Service makes the process seamless. Our team of specialists ensures that your application meets all regulatory requirements, reducing the risk of delays or rejections.
We assist with:
- LLC company registration
- Trade license acquisition
- Communication with government departments
- Visa and immigration services
Start Your LLC Company Today! If you’re ready to establish an LLC in Dubai, contact Dubai Business Service. Our experts handle all the paperwork and legal requirements, so you can focus on growing your business.
