What is an LLC in Dubai and how does it work?

LLC stands for Limited Liability Company. In Dubai it is a mainland company licensed by the Department of Economy and Tourism (DET) and governed by the UAE Commercial Companies Law. The 'limited liability' part means the company is a separate legal person from its owners, so a shareholder's financial responsibility is generally limited to the value of their shares in the company's capital rather than their personal assets. The LLC holds the trade licence in its own name, and it can sign contracts, own assets, open a corporate bank account, hire staff, and sponsor residence visas for owners and employees. It can trade across the UAE mainland. Depending on the licence issued, an LLC can carry out commercial, professional, or industrial activities. To set one up you typically reserve a trade name, choose your business activity, secure any special approvals the activity requires, sign a Memorandum of Association, provide a tenancy contract (Ejari) for office space, and obtain the trade licence. Ownership rules have changed in recent years, and many activities are now open to full foreign ownership. Outside Dubai the same structure is licensed by the economic department of the relevant emirate. Because the exact steps, approvals, permitted activities, and fees depend on your chosen activity and emirate, confirm the current requirements with the licensing authority — DET in Dubai — before committing. For structuring questions, you can compare verified UAE legal professionals on LEXAI.