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Dubai Mainland LLC Formation 2026: Cost & Steps

Dubai Mainland LLC Formation 2026: Cost & Steps

Dubai mainland LLC formation costs AED 12,000–25,000 all-in (2026). Under Cabinet Decision No. 55 of 2021, foreign entrepreneurs can own 100% of a mainland company. Registration is handled by DED (Department of Economy and Tourism).

What is a Dubai Mainland LLC in 2026?

A Dubai mainland company (limited liability company or LLC) is a legal business entity registered directly with the Department of Economy and Tourism (DED), not within a free zone. Since Cabinet Decision No. 55 of 2021, you can hold 100% ownership as a foreign national—no local sponsor required. This contrasts sharply with pre-2021 rules. A Dubai mainland company formation follows Federal Decree-Law No. 32 of 2021 (Commercial Companies Law) and is governed by the emirate’s commercial framework. DBS has guided over 80,000 entrepreneurs through this process since 2009.

Questions? WhatsApp DBS on +971 54 332 2846 for a no-cost scoping call.

2026 Mainland LLC Formation Cost Breakdown

The all-in cost for a mainland LLC typically ranges from AED 12,000 to AED 25,000, depending on activity classification and office setup:

Cost Element Typical Range (AED)
DED registration & licence fee 2,000–5,500
MOHRE labour contract registration 0–1,500
Ejari office lease registration 1,000–3,000
Visa stamping (per employee) 800–1,200 per person
Legal documentation & filing 3,000–8,000
Optional: corporate bank account setup 0–2,000

Exact costs depend on activity category and office space. Book a free consultation at Dubai business setup to lock in a tailored quote.

DED Activity Classification: Commercial, Professional & Industrial

The Department of Economy and Tourism (DET) classifies mainland activities into three licence categories, each with different regulatory requirements and fee structures:

  • Commercial Licence: Retail, trading, import/export, wholesale, restaurants, retail services. Typically AED 2,500–4,500 annual fee. Most flexible category for foreign entrepreneurs.
  • Professional Licence: Consultancy, legal services, IT services, accounting, training, engineering. Annual fee AED 2,000–3,500. Requires specific qualifications or credentials. May require a local agent for certain disciplines.
  • Industrial Licence: Manufacturing, production, warehousing. Annual fee AED 3,000–5,500. Stricter zoning and environmental compliance; office space requirements higher.

Verify your activity code with DET before filing—incorrect classification delays registration by 2–3 weeks and may trigger reclassification costs (AED 500–1,000).

100% Foreign Ownership Under Cabinet Decision 55 of 2021

Cabinet Decision No. 55 of 2021 fundamentally transformed Dubai mainland company ownership. Prior to this, foreign investors typically required a local UAE national sponsor holding at least 51% equity. Now, a single foreign founder or foreign-owned holding company can establish and operate a mainland LLC with 100% ownership. This rule applies across all three licence types (commercial, professional, industrial). However, certain sectors—notably real estate brokerage, insurance, and some financial services—may still require an Emirati local service agent as a regulatory requirement, not an equity shareholder. Always verify sector-specific rules with DED before committing to your business structure.

Unsure if your sector requires a local agent? Email inquiry@dubaibusinessservices.com for a free legal check.

Ejari Registration & Visa-per-Sqm Rule

Every mainland LLC must maintain a registered office with a valid Ejari (property registration) certificate issued by the Department of Land and Property. The Ejari establishes your legal business address for all government correspondence, client invoicing, and compliance notices. The visa-per-square-metre rule stipulates that for every visa you issue to an employee, you must lease a minimum office space. Current guidance (2026) typically requires 50–100 sqm per employee visa, though commercial activities may operate with smaller footprints (30–50 sqm) if approved by DED. This rule prevents fictitious office addresses and ensures every company has a genuine physical presence.

Office lease costs vary by location (Downtown, DIFC periphery, Business Bay, suburban areas). Expect AED 50–150 per sqm per annum. You do not need to own the office—a valid tenancy contract and Ejari certificate suffice.

Timeline & Steps for 2026 Mainland LLC Formation

Formation typically takes 7–14 working days from submission to licence issuance, provided all documents are complete and no activity reclassification is required:

  1. Days 1–2: DBS prepares business plan, activity classification memo, and shareholder/director documentation. Founder signs all authorisation letters.
  2. Days 3–4: Secure Ejari office lease (or provide existing lease agreement). Register contract with RERA or municipality (included in Ejari process).
  3. Days 5–7: Submit DED application package (memorandum & articles, passport copies, visa pages, Ejari, activity memo). DET processes and issues trade licence.
  4. Days 8–10: Register labour contracts with MOHRE (Ministry of Human Resources and Emiratisation). If hiring staff, obtain employment visa quota from MOHRE (visa-per-sqm verification).
  5. Days 11–14: Obtain visa stamps at immigration, set up corporate bank account, company seal, and final compliance confirmations.

Expedited processing available in 5–7 days for an additional premium (AED 2,000–3,000). Delays occur if DED requests clarification on activity classification or if Ejari is rejected due to zoning conflicts.

FAQ: Common 2026 Mainland Setup Questions

See detailed answers below covering cost, timeline, sponsor rules, licence types, ownership, office space, and local agent requirements.

Frequently asked questions

How much does a Dubai mainland LLC cost in 2026?

Total all-in cost ranges from AED 12,000 to AED 25,000. This includes DED licence fees (AED 2,000–5,500), Ejari office registration (AED 1,000–3,000), MOHRE labour contract filing (AED 0–1,500), visa stamping per employee (AED 800–1,200 each), and legal documentation (AED 3,000–8,000). Final price depends on activity classification, office size, and employee count.

How long does mainland LLC formation take in 2026?

Standard formation takes 7–14 working days from document submission to licence issuance. This covers DED registration, Ejari completion, MOHRE labour contract filing, and visa processing. Expedited 5–7 day service costs an additional AED 2,000–3,000. Delays may occur if DED requests activity reclassification or if your office lease fails zoning checks.

Do I still need a local sponsor for a mainland LLC in 2026?

No. Cabinet Decision No. 55 of 2021 eliminated the local sponsor equity requirement. Foreign nationals and foreign-owned companies can now hold 100% ownership of a mainland LLC. However, certain regulated sectors (real estate brokerage, insurance, some financial services) may still require an Emirati local service agent as a regulatory position—though this agent does not hold equity or voting rights.

What’s the difference between commercial, professional, and industrial mainland licences?

Commercial: retail, trading, restaurants, services. Fee AED 2,500–4,500 p.a. Most flexible. Professional: consultancy, IT, accounting, engineering. Fee AED 2,000–3,500 p.a. May require local agent for certain disciplines. Industrial: manufacturing, warehousing, production. Fee AED 3,000–5,500 p.a. Stricter zoning and higher office space requirements. Verify your activity code with DED before filing to avoid reclassification delays.

Can a single foreign founder hold 100% shares in a Dubai mainland LLC?

Yes. Under Cabinet Decision No. 55 of 2021, a single foreign national or foreign-owned entity can establish and operate a mainland company with 100% ownership. No local UAE national sponsor is required. However, some regulated sectors (real estate brokerage, insurance) may stipulate a local service agent—but this role is separate from equity ownership.

What’s the minimum office space (Ejari) needed for a Dubai mainland LLC?

Minimum office space is typically 30–50 sqm for commercial activities and 50–100 sqm for professional or industrial licences, subject to DED approval. The visa-per-sqm rule requires you to lease sufficient space to support each employee visa (roughly 50–100 sqm per person). You do not need to own the office—a valid Ejari lease certificate is sufficient.

Which mainland activities still require an Emirati local service agent?

Most activities do not require a local agent post-Cabinet Decision 55. However, real estate brokerage, insurance, securities trading, some legal services, and certain financial services may mandate a local agent as a regulatory requirement—though without equity or management control. Always confirm with DET for your specific activity code before finalising your business plan.

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