Dubai Mainland Company Setup 2026

Mainland vs free zone vs e-trader

Step-by-step setup process

1. 1

   Choose your business activity

   Select from the DED (Dubai Economy & Tourism) activity list.

   Dubai mainland licences are issued by the Department of Economy and Tourism (DET/DED). Each licence covers one or more approved activities — trading, professional, industrial or tourism. Activities determine your licence category and which approvals you need from sector regulators (e.g. Dubai Health Authority for medical businesses, KHDA for education).

2. 2

   Reserve your trade name

   ~AED 620

   Register your company name through DED's online system.

   Names must not contain religious references, government institution names or offensive language. Sole proprietorships must include the owner's full name. Use the DED Name Reservation portal or Invest in Dubai platform. Cost: approximately AED 620–720.

3. 3

   Obtain initial approval

   ~AED 150

   Get DED's preliminary consent to proceed with the licence application.

   Initial approval confirms DED has no objection to your proposed activity. Some activities require external approvals first (e.g. Municipality clearance for food businesses, DHA for clinics). Cost: approximately AED 100–200.

4. 4

   Secure an office space

   AED 10,000–15,000/yr office

   Sign a tenancy contract and register it as Ejari.

   A physical office is mandatory for mainland licences. Register your tenancy with Ejari (AED 177.75 online via Dubai REST) to validate it for DED. Serviced office and co-working desk packages from business centres in Al Quoz, Business Bay and Deira start around AED 10,000–15,000 per year and satisfy DED requirements.

5. 5

   Draft and notarise the Memorandum of Association

   AED 1,500–4,000

   Prepare the MOA (for LLCs) and have it notarised at the Dubai Courts notary public.

   LLCs require a Memorandum of Association signed by all shareholders. Sole proprietorships do not need an MOA. The MOA must be notarised at a Dubai Courts notary office. A typing centre can optionally assist with drafting. Cost: AED 1,500–4,000 depending on share capital and complexity.

6. 6

   Pay DED licence fees and collect the licence

   AED 8,000–15,000 (DED)

   Pay all fees and receive your mainland trade licence.

   Fees vary by activity type, number of activities and any external approvals needed. Budget AED 8,000–15,000 for the DED licence itself in year one. The licence is issued digitally and renewed annually. Additional fees apply for each employee visa you sponsor.

Cost breakdown

Things to get right from day one

• Choose your activity carefully — adding activities later costs fees and may require new approvals. Over-broad activity lists can flag issues at renewal.
• Keep your Ejari registration current — DED renewal requires a valid tenancy contract registered with Ejari.
• Open a business bank account promptly — most UAE banks require your trade licence before opening. Emirates NBD, Mashreq and ADCB are common choices for SMEs.
• Register for VAT if your taxable supplies exceed AED 375,000 annually — mandatory registration, optional below AED 187,500.
• File corporate tax returns — mandatory for all juridical persons with a UAE trade licence even if below the taxable threshold.
• Budget for Sanad / municipal fees — DED licences include service charges to the Dubai Municipality that vary by business type.

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Frequently asked questions

Can a foreigner own 100% of a Dubai mainland company?+

Yes — since UAE Commercial Companies Law amendments effective June 2021, most commercial activities allow 100% foreign ownership of mainland LLCs without a local sponsor. Some strategic sectors (oil and gas, arms, utilities, security services) still require UAE national participation. Always verify your specific activity with DED.

Do I need a local sponsor for a mainland company?+

For most commercial and professional activities, a local sponsor (UAE national holding shares) is no longer required since the 2021 ownership reform. However, certain regulated activities — security services, printing presses, exchanges, and others listed in the Ministerial Resolution — still require a UAE national partner.

What is the minimum share capital for a Dubai mainland LLC?+

The UAE Commercial Companies Law does not specify a mandatory minimum share capital for LLCs in most sectors. DED typically accepts nominal share capital (AED 10,000–300,000 is common). Some regulated activities (banking, insurance, investment management) have their own minimum capital requirements set by the relevant regulator.

How long does it take to set up a mainland company in Dubai?+

A straightforward mainland LLC or sole proprietorship can be set up in 2–4 weeks if you have all documents ready and your activity does not require external approvals. Activities needing DHA, KHDA or Municipality clearance can take 4–8 weeks.

What is the corporate tax on mainland companies?+

The UAE introduced a 9% federal corporate tax effective for financial years starting on or after 1 June 2023. Businesses with taxable income of AED 375,000 or below pay 0%. Free zone entities may qualify for a preferential 0% rate on qualifying income if they meet conditions. See our UAE corporate tax guide for full details.

Can a mainland company sponsor employee visas?+

Yes — mainland licences can sponsor an unlimited number of employment visas (subject to MOHRE quotas based on office size). Each visa requires a medical fitness test, Emirates ID biometrics and GDRFA entry permit. Budget AED 3,500–5,000 per visa.