Limited Liability Company (LLC)

The limited liability company is the most common corporate form for doing business onshore in the UAE. Its defining feature is that each partner's liability is limited to their share in the capital — personal assets are generally shielded from company debts, subject to exceptions like personal guarantees and fraud. UAE LLCs are governed by the Commercial Companies Law (Federal Decree-Law No. 32 of 2021); following foreign ownership reforms, most commercial and industrial activities can now be 100% foreign-owned, though some strategic activities still carry restrictions. The company is formed by a notarised memorandum of association, licensed by the economic department, and managed by one or more managers whose registered authority binds the company. It matters because the LLC is the default vehicle for mainland trading, services and retail. You meet it when choosing a setup structure, buying into an existing business, or dealing with the question of what a manager could validly sign.