Dubai LLC Company Setup Fees Explained in Detail

Planning to establish a business in Dubai as a Limited Liability Company (LLC)? The LLC model remains one of the most popular business structures in the UAE which offers flexibility, access to the mainland market, and now even 100% foreign ownership for most activities.

But here’s where most entrepreneurs stumble: They underestimate the actual Dubai LLC company setup fees.

They budget for the trade license but forget about the office rent, visa fees, or government approvals. Others fall prey to unclear pricing from consultants or run into surprise expenses like local sponsor renewals or hidden documentation charges.

This blog is your no-nonsense guide to understanding the actual cost of setting up a Dubai LLC: what they include, what to watch out for, and how to plan your Dubai LLC budget the smart way.

By the end, you’ll know:

• How much does a Dubai LLC really cost?
• What Dubai LLC fees are one-time vs annual?
• What are the hidden or surprise charges in Dubai LLC setup?
• How do I keep my Dubai LLC setup affordable but fully compliant?

Let’s break down the numbers and help you launch with clarity.

What is an LLC in Dubai?

A Limited Liability Company (LLC) is a common and flexible business structure for entrepreneurs and investors who want to run their business in Dubai’s mainland market. The formation of LLCs means you can:

• Trade directly within the UAE
• Bid on government contracts
• Operate across all emirates

An LLC can be formed with 1 to 50 shareholders, and until recently, it required a UAE national sponsor holding 51% ownership. However, thanks to the Foreign Direct Investment (FDI) reforms, many activities now allow 100% foreign ownership, eliminating the need for a local partner; though a local service agent may still be required for certain activities.

Key Cost-Affecting Features of a Dubai LLC:

• DED is the primary authority for licensing
• Requires a physical office (virtual offices not allowed for LLCs)
• Allows for unlimited visa eligibility, based on office size
• License type and business activity influence total fees

Understanding the structure is essential before diving into the Dubai LLC company setup fees, because each cost directly corresponds to one of these foundational components.

Dubai LLC Company Setup Fees: Complete Breakdown

The cost of setting up a Dubai LLC is a collection of mandatory government fees, legal costs, and infrastructure requirements.

Here’s a detailed breakdown of the core costs of Dubai LLC setup involved:

1. Initial Approval Fees

Before you can reserve your company name or license, you need to get Initial Approval from the Department of Economy and Tourism (DED).
Cost: AED 120

2. Trade Name Reservation

This fee is paid to secure your business name. Premium or foreign language names may incur extra charges.
Cost Range: AED 620+

3. Local Sponsor or Service Agent Fees

If your business activity still requires a UAE national as a sponsor or service agent, expect an annual fee. However, for many activities, this is now waived under the 100% foreign ownership rule.
Cost Range: AED 8,000–15,000/year (only if applicable)

4. DED Trade License Fee

This is the central cost: your actual trade license issued by the Dubai Department of Economic Development. You can get an e-Trader license by paying a fee of AED 1,070 along with Dubai Chamber Membership fees of AED 300.
Cost Range: AED 10,000–15,000 depending on activity and license type

5. Memorandum of Association (MOA) Drafting & Notarization

Drafting and attesting the MOA in court is a legal requirement. Costs vary based on the number of shareholders.
Cost Range: AED 300 for documents worth up to AED 100,000

6. Legal Translation Fees

If any documents are in non-Arabic languages, they must be legally translated and attested.
Cost Range: AED 0.25 to AED 0.50 per word

7. Administrative & Government Service Fees

This includes barcode registration, customs code (if needed), and knowledge & innovation fees by DED.
Cost Range: AED 2,000-AED 5,000

Estimated Base Setup Cost for Dubai LLC: AED 22,000 – 30,000+

Note: These figures vary by business activity, number of visas, and office space size.

Cost of Office Space for LLCs

Unlike free zone companies, a Dubai LLC must lease a physical office. This is non-negotiable and directly affects your license and visa eligibility.

Minimum Office Space Requirement

The minimum space requirement is 200 square feet, as mandated by the Dubai Municipality and DED. Without this, your license cannot be approved or renewed.

Office Options and Pricing

Office Type	Approx. Monthly Rent (AED)	Notes
Shared/Flexi-desk	Not allowed for LLCs	Only for free zones
Small Office (200 sqft)	AED 12,000–30,000/month	Eligible for 2–3 visas
Mid-size Office	AED 35,000–60,000/month	Eligible for 4–8 visas
Premium Office	AED 80,000+/month	Downtown or high-profile locations

Ejari (Tenancy Contract) Fees

Your lease must be registered via Ejari, the official tenancy registration platform in Dubai.

• Ejari registration: AED 120
• Office fit-out approval (if needed): AED 0.90 per square feet (From AED 200 – AED 10,000) + AED 10 as Knowledge Dirham + AED 10 as Innovation Dirham (For more details, visit the DDA official website)

Pro Tip: Choose your office size wisely based on your visa needs. Some businesses opt for co-working memberships, but for LLCs, these won’t be sufficient.

Visa Costs for LLC Company Owners and Employees

Visa fees are often overlooked when budgeting for Dubai company setup costs, but they can significantly impact your bottom line — especially if you’re planning to sponsor multiple employees.

Here’s how visa-related expenses break down:

Investor or Partner Visa Costs

As an LLC owner or shareholder, you’re eligible to apply for an investor/partner visa. This process includes multiple steps with associated fees.

Expense	Estimated Cost (AED)
Establishment Card	750–2,000
Immigration File Opening	1000–2000
Entry Permit (inside UAE)	600–1,165
Medical Test & Emirates ID	1,100–1,400
Visa Stamping	550

Total (Investor Visa): AED 4,000 – 7,115+

Employee Visa Costs

Employee visas are slightly lower in cost but depend on:

• Quota allocation
• Job title
• Medical classification
• Age of the employee

Average fee for each employee visa: AED 5,000+
(This includes entry permit, medical, Emirates ID, labor contract, and stamping.)

PRO Services (Optional but Recommended)

If you’re unfamiliar with local government processes, hiring a PRO service can ensure a smooth visa process.
Cost: AED 1,000 – 2,000 per visa

Additional Annual and Recurring Costs

Beyond the one-time setup, your Dubai LLC will also incur recurring annual costs that must be factored into your budget planning. These can include everything from license renewal to basic operations.

Annual Trade License Renewal

This step is essential and the fee is paid to DED. It is necessary to ensure your business remains legal and active.
Cost: AED 8,000 – 15,000 (same as initial license fee)

Ejari Renewal

Annual renewal of your tenancy contract is required for license renewal.
Cost: AED 100 – 120 + VAT

PO Box and Mail Management

Mandatory for most mainland businesses.
Annual Fee: AED 995 – 11,995

Company Stamp, Signage & Stationery

Small but essential setup items.
Cost: AED 300 – 800

Bank Account Minimum Balance

While not a direct fee, most corporate accounts mandate you to have a the least balance of AED 25,000, which can go to 50,000 or even AED 300,000. Falling below this threshold may result in monthly charges.

VAT Registration (if eligible)

Required if your annual turnover exceeds AED 375,000.
VAT registration cost: Free (Fee apply if you need assistance with VAT registration)

When planning your Dubai LLC setup, you need to budget not just for day-one costs, but for sustained operations across 12 months.

Hidden Costs of Dubai LLC Setup to Watch Out For

While the upfront fees for setting up an LLC in Dubai are predictable, many entrepreneurs encounter unplanned expenses that can disrupt their budget. Here’s what to watch out for:

Bank Account Opening Minimum Balance

Most UAE banks require a minimum monthly average balance, usually between AED 25,000 – AED 500,000, depending on the bank and the business type. Falling below this can result in:

• Monthly penalties (AED 50–500)
• Account restrictions or closure

Sponsor Renewal Fees (If Applicable)

Although many business activities now allow 100% foreign ownership, some still require a local sponsor or service agent. Annual renewal or “sponsorship fees” may apply even if you have a side agreement in place.

Average Cost: AED 8,000 – 50,000/year

Document Attestation Costs

If you’re using corporate shareholders or foreign documents, these may need to be:

• Translated into Arabic
• Notarized locally
• Attested at the UAE Ministry of Foreign Affairs or embassy

Estimated Cost: AED 500 – 3,000 depending on the document origin

Delays and Penalties

• Late license renewal = AED 250-5,000/month
• Failure to renew Ejari = license suspension risk
• Incorrect documentation = resubmission and admin charges

Tip: Work with a reliable consultant to avoid procedural mistakes that cause financial setbacks.

Budget Planning for Dubai LLC Company Setup Costs

If you’re an entrepreneur or small business owner, cost predictability is key. Here’s how to build a practical budget and avoid cash flow crunches during or after setup.

Sample Budget – Solo Founder LLC

Cost Item	Estimated (AED)
Trade License	12,000
Office Rent (200 sq ft)	20,000
Investor Visa	4,000
Documentation & MOA	2,000
Bank Setup & PRO Fees	2,000
Misc. (Stamp, PO Box, etc.)	1,500
Total	41,500

Sample Budget – Small Team (3 Employees)

Cost Item	Estimated (AED)
Trade License	10,000
Mid-size Office Rent	45,000
4 Visas (Owner + 3 staff)	20,000
Documentation & PRO Services	5,000
Bank Minimum Balance	50,000 (not a fee, but frozen)
Misc. Operational Costs	5,000
Total	140,000+

Tips for Better Cost Management

• Bundle services with a consultancy to lower administrative and legal fees.
• Negotiate lease terms to defer early rent payments if possible.
• Use advisory services for VAT and compliance to avoid penalties later.

How Socialite Consultancy Can Help You Save on Setup Costs

Setting up a Dubai LLC can be a game-changing business move but only if you get it right from the start. That’s where Socialite Consultancy Services comes in.

We specialize in helping entrepreneurs, startups, and international investors navigate Dubai LLC company setup fees without wasting time or overpaying.

Unlike generic consultants, we provide a clear, upfront cost breakdown including:

• Government fees
• Legal documentation
• PRO services
• Office lease advisory
• Visa and immigration costs

Tailored Advisory Based on Your Budget

Whether you’re bootstrapping your first venture or scaling a team, we help you:

• Choose the most cost-effective license structure
• Avoid non-essential expenses
• Find the right office space for visa eligibility

One Partner. Complete Setup.

From initial planning to license issuance and visa processing, we handle it all. You get:

• End-to-end company formation
• Dedicated account manager
• Post-setup compliance support (VAT, renewals, bank coordination)

Contact us today.

Key Takeaways

• Dubai LLC setup costs include licensing, office rent, visas, documentation, and legal fees.
• Total initial budget can start from AED 30,000 to AED 150,000+.
• Don’t ignore recurring costs like trade license renewal, visa renewals, or Ejari.
• Bank requirements and hidden fees can surprise first-time founders; so plan early.

Frequently Asked Questions (FAQs)

1. How much does it cost to start an LLC in Dubai?

Expect to spend AED 30,000–50,000 for a basic setup with one visa and minimal office space. Costs increase with more employees and premium office locations.

2. What’s included in the Dubai LLC setup cost?

Typical fees for Dubai LLC setup cover:

• Trade license
• Name reservation
• MOA drafting
• Office lease
• Visa application
• Government approvals

3. Can LLCs be 100% owned by foreign investors in Dubai?

Yes, for most activities. However, some sectors still require a local service agent or UAE national shareholder.

4. Can I use a virtual office for an LLC?

No. Dubai mainland LLCs must lease a physical office, with a minimum of 200 sq ft as per DED regulations.

5. What are the visa costs for LLC owners and employees?

Investor/partner visas cost around AED 3,000–6,000. Employee visas may cost AED 5,000–7,000 each.

6. Do I need a consultant to set up my LLC in Dubai?

You can set it up yourself, but working with a consultant saves time, avoids errors, and helps you reduce unnecessary costs.

7. Can I open a business bank account immediately?

Yes, but banks often require a minimum monthly balance of AED 25,000–500,000, and account activation can take a few weeks.