Insights · UAE Company Setup
How to Set Up a Mainland Company in Dubai in 2026: Steps, Approvals and Timeline
A Dubai mainland company gets its trade licence from the Department of Economy and Tourism (DET). The founder chooses the activity and legal form, obtains initial approval, reserves a trade name for six months, signs and attests the memorandum of association, registers an office lease on Ejari and collects the licence. Most commercial and industrial activities allow 100% foreign ownership. The company then opens MoHRE and immigration files, registers for corporate tax within three months and files beneficial ownership details within 60 days.
For founders and groups choosing the mainland over a free zone, this guide sets out each DET step in order, the approvals that slow it down, where foreign ownership is still restricted, and the labour, tax and ownership filings due once the licence is issued.
| Step or rule | Position at 2 October 2026 |
|---|---|
| Licensing authority | Dubai Department of Economy and Tourism (DET) |
| Foreign ownership | Up to 100% for most activities; strategic impact activities need specific approval |
| DET sequence | Initial approval, trade name reservation, then licence issue |
| Trade name | Reserved for six months, renewable; must carry the legal form, such as LLC |
| Licence documents | Initial approval receipt, attested memorandum, Ejari-registered lease, any external approvals |
| Instant Licence | Within five minutes if no external approval is needed; virtual site for year one only |
| Before hiring | Establishment files with MoHRE and GDRFA Dubai |
| Tax and ownership filings | Corporate tax registration within 3 months; beneficial ownership data within 60 days |
Before You Apply: Activity, Legal Form and Foreign Ownership
Everything starts with the business activity. DET issues commercial, industrial and professional licences, and the activities you choose decide the licence type, the legal forms open to you and whether another authority must approve the business first. Regulated activities, such as financial services, telecommunications or media, need that external approval. Choose activities that match what the company will actually do: the licence defines what it may legally do, and adding activities later means amending it.
Most foreign-owned trading and services businesses use a limited liability company (LLC), including the one-person LLC, where each owner’s liability is limited to their share of the capital. DET also registers sole proprietorships, civil companies, partnerships, joint stock companies and branches. According to DET’s Al Wajeez guide, a foreign national may own a sole proprietorship only for a professional activity and must appoint a UAE local service agent. Non-GCC partners in a civil company must do the same.
Full foreign ownership of mainland companies has been possible since 2021, after Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law. The current law, Federal Decree-Law No. 32 of 2021, came into force on 2 January 2022. DET states that 100% foreign ownership applies to most commercial and industrial activities. The exceptions are strategic impact activities under Cabinet Resolution No. 55 of 2021, including security and defence, banks, exchange houses, finance companies, insurance, currency printing and telecommunications. These need specific approval and may carry ownership conditions.
The DET Sequence: From Initial Approval to Trade Licence
DET describes initial approval as the first step towards a business licence. It lets you proceed, but it does not allow the company to trade. Next, reserve the trade name. Under DET’s rules it must be a proper name, contain nothing obscene or indecent, and not copy an active business name in Dubai, a government project or an international trademark. The UAE Government portal adds that it must carry the legal form, such as LLC. A reservation lasts six months and can be renewed.
Then come the documents that turn approval into a licence. The memorandum of association must be signed and attested, and documents issued abroad need UAE embassy attestation and an Arabic translation. The office lease must be registered on Ejari and attested by the Real Estate Regulatory Agency (RERA). Activities that need another authority’s approval wait for it here. DET then issues the licence against the initial approval receipt, the attested lease, the attested memorandum, any external approvals and, where relevant, the attested service agent contract.
For activities that need no external approval, DET’s Instant Licence shortens the sequence. DET says it can be issued within five minutes, with an electronic memorandum of association and a virtual site for the first year only. The attested memorandum and a physical location are due when the licence is renewed or amended, so the Ejari lease is deferred, not removed. DET publishes no standard processing time for other licences; external approvals and attestation usually set the pace.
After the Licence: Labour, Immigration, Tax and Ownership Filings
A licence alone does not let you hire. According to the UAE Government portal, the company must register with the Ministry of Human Resources and Emiratisation (MoHRE) by opening an establishment file linked to the licence, and must open a company file with the General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai. Both are needed before work permits and residence visas can be issued for staff or owners.
Corporate tax registration follows. Under FTA Decision No. 3 of 2024, a company incorporated on or after 1 March 2024 must apply to register with the Federal Tax Authority within three months of incorporation, on EmaraTax. Late registration costs AED 10,000. Mainland companies pay 0% on taxable income up to AED 375,000 and 9% above it, and file a return within nine months of each financial year end.
Beneficial ownership is the other early filing. Cabinet Resolution No. 109 of 2023, which replaced Cabinet Resolution No. 58 of 2020, requires a company to keep a register of its beneficial owners and a register of its partners or shareholders. It must give that data to the registrar, DET for a Dubai mainland company, within 60 days of licensing, and file any change within 15 days.
Dubai Mainland Setup Checklist, in Order
- Check each activity for external approvals and against Invest in Dubai’s foreign ownership restrictions list.
- Choose the legal form, and appoint a local service agent if the form requires one.
- Obtain initial approval and reserve the trade name within its six-month window.
- Have documents issued abroad attested by the UAE embassy and translated into Arabic.
- Attest the memorandum of association and register the office lease on Ejari.
- Collect the licence, then open the MoHRE and GDRFA files before hiring.
- File beneficial ownership data with DET within 60 days of licensing.
- Register for corporate tax on EmaraTax within three months of incorporation.
- Diary the licence renewal and file ownership changes within 15 days.
Frequently asked questions
Can a foreigner own 100% of a mainland company in Dubai?
Yes, for most activities. Since 2021 the Commercial Companies Law has allowed full foreign ownership of mainland companies, and DET applies it to most commercial and industrial activities. Strategic impact activities under Cabinet Resolution No. 55 of 2021, such as defence, banking, insurance and telecommunications, need specific approval and may carry ownership conditions. A foreign owner of a professional sole proprietorship must appoint a UAE local service agent.
How long does it take to get a mainland trade licence in Dubai?
It depends on the activity. DET says its Instant Licence, for activities that need no external approval, can be issued within five minutes with an electronic memorandum of association. For a standard licence DET publishes no fixed processing time; external approvals, attestation and the Ejari lease set the pace. After licensing, corporate tax registration is due within three months and beneficial ownership data within 60 days.
Do I need a physical office for a Dubai mainland company?
Generally, yes. DET issues a standard licence only against an office lease attested by the Real Estate Regulatory Agency and registered on Ejari. The exception is the Instant Licence, which allows a virtual site for the first year only, with the attested memorandum and a physical location due on renewal or amendment. Free zones are often more flexible on premises, which our free zone versus mainland guide compares.
Does a new Dubai mainland company have to register for corporate tax?
Yes. A company incorporated on or after 1 March 2024 must apply to register with the Federal Tax Authority within three months of incorporation, and late registration costs AED 10,000. Mainland companies pay 0% on taxable income up to AED 375,000 and 9% above it, and file each return within nine months of the year end. Small Business Relief may apply while revenue stays at or below AED 3 million.
Sources
Figures in this article were checked against these sources on 2 October 2026. Rates, fees and deadlines change, so confirm the current position with the authority before acting.
- Dubai Department of Economy and Tourism (DET), Al Wajeez guide for businessmen
- Government of Dubai (dubai.ae), Starting a business
- UAE Government portal (u.ae), Steps to start a business on the mainland
- UAE Government portal (u.ae), Full foreign ownership of commercial companies
- UAE Government portal (u.ae), Recruiting on the mainland
- Federal Tax Authority (UAE), Decision on corporate tax registration timeframes
- UAE Legislation portal, Cabinet Resolution No. 109 of 2023 on beneficial owner procedures
- UAE Ministry of Finance, Extension of Small Business Relief for corporate tax