Dubai Mainland LLC Formation 2026: Cost, Steps & DED Rules
A Dubai mainland LLC in 2026 costs AED 12,000–25,000 all-in, depending on activity classification (commercial, professional, or industrial) and office location. You can hold 100% foreign ownership under Cabinet Decision No. 55 of 2021, and registration is handled by the Department of Economy and Tourism (DET). Setup takes 7–10 working days from document submission to trade-licence issuance.
What is a Dubai Mainland LLC in 2026?
A Dubai mainland company formation under the Commercial Companies Law (Federal Decree-Law No. 32 of 2021) allows entrepreneurs to trade directly in the Emirate of Dubai without free-zone restrictions. Following Cabinet Decision No. 55 of 2021, foreign founders can now own 100% of a mainland LLC—no local Emirati sponsor required. The Department of Economy and Tourism (DET) administers all registrations and licence classifications. Unlike free-zone entities, mainland LLCs operate across all of Dubai and can serve both local and international clients without geographic limitation.
Unsure whether mainland or free-zone suits your model? Book a free consultation with DBS.
Mainland LLC Formation Costs Breakdown (AED)
| Component | Cost Range (AED) | Notes |
|---|---|---|
| DED Trade Licence (Commercial) | 1,400–2,000 | Commercial licence; varies by DET activity code |
| DED Trade Licence (Professional) | 1,200–1,800 | Lower for consultancy, design, accounting services |
| DED Trade Licence (Industrial) | 2,500–4,500 | Manufacturing, warehousing, logistics |
| Ejari Office Registration (12 months) | 2,000–8,000 | Depends on location, size (min. 50–150 sqm) |
| Company Registration (Trademark, Deeds) | 1,500–2,500 | Includes initial corporate records |
| MOHRE Labour Contract & Visas (optional, per person) | 1,500–3,000 | Ministry of Human Resources and Emiratisation approval |
| Bank Account Setup & Compliance | 500–1,500 | Many banks waive setup; some charge audit/deposit requirements |
| All-in (no staff, no visas) | AED 12,000–25,000 | Includes DED, Ejari, company registration, compliance |
DED Activity Classifications & Licence Types
The Department of Economy and Tourism assigns one of three licence categories based on your business activity code:
- Commercial Licence: Trading, retail, import/export, hospitality, real-estate brokerage. Fastest approval; DED fee AED 1,400–2,000 annually.
- Professional Licence: Consulting, accounting, legal services, design studios, healthcare practices. Lower DED fee (AED 1,200–1,800); requires relevant qualification certificates.
- Industrial Licence: Manufacturing, warehousing, logistics, construction materials. Highest DET fee (AED 2,500–4,500); may require environmental clearance and larger Ejari footprint.
All three require Ejari (tenancy contract registration) and can achieve 100% foreign ownership post-Cabinet Decision 55. DET publishes the complete activity classification matrix on its portal; DBS can cross-reference your industry code to confirm category and regulatory bodies involved.
Ejari Office Requirement & Visa Allocation
Every mainland LLC must have a physical, registered office in Dubai to qualify for trade-licence issuance. The Ejari system (Real Estate General Authority of Dubai) registers the tenancy contract between your company and the landlord.
- Minimum office space: 50–150 sqm for commercial and professional licences; 150–500+ sqm for industrial operations (varies by activity).
- Visa allocation: Each licensed employee earns one visa entitlement per 50 sqm of Ejari-registered space. Example: 150 sqm office = 3 work-visa allocations (formula: floor of sqm ÷ 50).
- Ejari registration cost: AED 2,000–8,000 for a 12-month contract, depending on location (Business Bay, Deira, Bur Dubai, etc.) and rental rate.
- Shared office spaces: MOHRE and DET accept virtual/co-working spaces provided the Ejari contract is in the company's name and the minimum sqm threshold is met.
DBS handles all Ejari paperwork and liaises with DEWA and municipality for utility connections.
100% Foreign Ownership & the End of the Sponsor Requirement
Cabinet Decision No. 55 of 2021 fundamentally reformed mainland LLC ownership rules. Before 2021, foreign entrepreneurs needed an Emirati local sponsor holding at least 51% of shares; many were tied to exploitative agent fees (AED 5,000–15,000 per year). That requirement is now abolished for most sectors.
- What changed: A single foreign founder (individual or company) can now own 100% of shares in a mainland LLC, provided the activity is not on the restricted list.
- Restricted activities: A small number of sectors (e.g. newspapers, broadcasting, some healthcare) still require local partnership or remain limited to UAE nationals. DET publishes the updated restricted list; always verify your activity code upfront.
- No agent fees: You pay only DET licensing fees (AED 1,200–4,500), not inflated sponsor commissions.
- Full control: 100% ownership means your company retains all profits, makes unilateral strategic decisions, and operates without sponsor interference.
This change has reduced mainland setup barriers dramatically and made Dubai business setup genuinely accessible to international entrepreneurs.
Formation Timeline & Process Steps (2026)
A complete mainland LLC registration typically follows this sequence:
- Day 1–2: Submit application to DET with passport copies, Ejari contract draft, activity description, and proof of funds (bank statement showing AED 1,000+ balance). DBS pre-screens documents to eliminate rejections.
- Day 3–4: DET reviews and may request clarification on activity code or Ejari address. Most approvals come within 48 hours if documentation is complete.
- Day 5: Pay DET licence fee (AED 1,200–4,500) and register Ejari contract at RERA. Obtain company registration number and initial licence certificate (valid 12 months from issue date).
- Day 6–7: Register at MOHRE (Ministry of Human Resources and Emiratisation) if you plan to hire staff. Open bank account with Emirates NBD, FAB, or Mashreq (most accept new mainland LLCs without audit fees).
- Day 8–10: Receive final trade licence document (physical copy from DET office). Begin operations: execute contracts, invoice, hire employees with MOHRE-approved labour contracts.
DBS manages all submissions, chasing and corrections—you review and sign. Average time: 7 working days.
Do You Still Need a Local Service Agent?
The short answer is no for most activities. Cabinet Decision 55 eliminated the mandatory Emirati sponsor for general commercial, professional, and industrial licences. However, a small number of regulated sectors still require local partnership:
- Broadcasting, journalism, print media: Must include Emirati stakeholder.
- Money exchange and financial advisory: May require local principal or co-partner depending on licence category and regulator (CBU, SCA oversight).
- Insurance brokerage: Typically requires local principal; some underwriters allow 100% foreign if registered as a freelancer under professional licence.
- Import of regulated goods (alcohol, pharmaceuticals): Varies by sector regulator (Ministry of Health, Ministry of Climate Change).
DET publishes an updated restricted-activities list on its website. Always cross-check your activity code with DBS before committing to an office lease, as misclassification can delay approval by 2–3 weeks.
Frequently asked questions
How much does a Dubai mainland LLC cost in 2026?
All-in cost (licence, Ejari, registration, compliance) ranges from AED 12,000–25,000 for a solo foreign founder, no staff. DED licence fees are AED 1,200–4,500 (depending on activity); Ejari costs AED 2,000–8,000 annually; company registration and bank setup add AED 2,000–5,000. Staff visas cost extra (MOHRE approval + airline, ~AED 1,500–3,000 per person).
How long does mainland LLC formation take in 2026?
Typical timeline is 7–10 working days from submission to licence issuance. This assumes complete, accurate documentation (Ejari contract, passport, activity code confirmation). DBS pre-screens your file to avoid rejections; if DET requests clarification, add 1–2 days. MOHRE labour registration (if hiring) adds 3–5 days separately.
Do I still need a local sponsor for a mainland LLC in 2026?
No, Cabinet Decision No. 55 of 2021 abolished the mandatory Emirati sponsor requirement. You can own 100% shares as a foreign individual or company. A handful of restricted activities (broadcasting, money exchange, certain insurance) still require local partnership—always verify with DET before applying. No sponsor agent fees required.
What's the difference between a commercial, professional, and industrial mainland licence?
Commercial: trading, import/export, retail, hospitality (DED fee AED 1,400–2,000). Professional: consulting, design, accounting, healthcare (AED 1,200–1,800; requires qualifications). Industrial: manufacturing, warehousing, logistics (AED 2,500–4,500; may need environmental clearance). Approval speed and regulatory bodies differ; DET assigns classification based on your activity code.
Can a single foreign founder hold 100% shares in a Dubai mainland LLC in 2026?
Yes, under Cabinet Decision No. 55 of 2021. A single foreign national or company can own 100% of a mainland LLC in most sectors. Restricted sectors (newspapers, broadcasting, money exchange) require local Emirati stakeholder—always confirm your activity code with DET upfront. Eliminates agent fees and sponsor interference.
What's the minimum office space (Ejari) needed for a Dubai mainland LLC?
Commercial and professional licences: minimum 50–150 sqm. Industrial: 150–500+ sqm depending on activity. Ejari (tenancy registration) cost is AED 2,000–8,000 annually. Visa allocation: floor(office sqm ÷ 50). Virtual/co-working spaces accepted if Ejari is in the company's name. Prime locations (Business Bay, JBR) cost more; Deira and Bur Dubai are cheaper.
Which mainland activities still require an Emirati local service agent?
Cabinet Decision 55 removed sponsors for most sectors. Exceptions: broadcasting/print media, money exchange, some insurance brokerage, certain regulated imports (pharmaceuticals, alcohol). Financial advisory and SCA-regulated activities may require local principal. DET's restricted-activities list is updated annually. Always cross-check your activity code before signing an office lease; misclassification causes 2–3 week delays.
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