Starting a Dubai Mainland business in 2026 is the best move for entrepreneurs who want to trade across the UAE and bid for government contracts. Thanks to updated laws, you can now enjoy 100% foreign ownership for most commercial activities.
However, the new 9% federal corporate tax and mandatory tax registration within 90 days mean that you need a clear plan to stay compliant. Hence, this guide!
It breaks down the simple roadmap to getting your trade license. It also covers everything from Ejari office requirements to the Small Business Relief program, which can help startups keep their tax rate at 0%. So, whether you are launching a small consultancy or a large trading firm, here is how to set up your business the right way.
The Real Cost of Setting Up a Dubai Mainland Business
Launching a Dubai mainland business is like opening your shop to the whole city instead of just one neighborhood. Unlike Free Zones, you are free in this model to trade anywhere in the UAE and even with government clients. As an illustration, think of it like you run a marketing agency, and a mainland license lets you serve both local startups and big government projects.
The Catch? You will have to follow tax rules and pay 9% on profits above AED 375,000.
Why Choose Dubai Mainland in 2026?
Choosing a Dubai Mainland license means unlocking the full UAE market. Unlike Free Zones, which limit you to specific industries or areas, a mainland license from the Department of Economy and Tourism (DET) lets you trade with consumers, businesses, and government bodies. You also benefit from 100% foreign ownership in most activities and stronger credibility with banks, making it easier to grow and secure financing.
- You get full market access and can trade directly with anyone.
- A 100% Ownership means no local partner is required.
- Banks trust them because they have a real office and physical presence.
This means if you establish your UAE mainland business now, you can effortlessly avoid free zone restrictions. This can be a strategic move, from your side, to position your brand within a world-class economy. So, whether you are a tech founder or a general trader, this is a sign that you must consider this stream as an active option.
The 2026 Mainland Tax Guide You Need
One of the most significant shifts for business owners is the maturity of the Federal Corporate Tax. You are no longer guessing how it works. Instead, now the rules are set.
- 0% Tax Rate: For all net profits up to AED 375,000.
- 9% Tax Rate: For all net profits exceeding AED 375,000.
Ø Understanding Small Business Relief (SBR)
This is the most critical piece of advice for startups in 2026. First of all, know that the UAE government provides the Small Business Relief program for resident businesses with revenue below AED 3 million. This means if you qualify and elect for this relief, you are treated as having no taxable income for that period. However, there is a minor change.
Under current law, this specific relief is scheduled to apply to tax periods ending on or before December 31, 2026. As a result, for all those who are starting a business now, they need to prepare for the possibility of paying the full 9% tax rate starting in their 2027 financial year.
Ø Mandatory Tax Registration
Moving on, you need to remember that even if you earn zero profit, every Mainland company must register for corporate tax submissions. This is important because the Federal Tax Authority (FTA) has issued a strict penalty of AED 10,000 for businesses that fail to register within the stipulated deadlines (usually within 3 months of getting your license).
The Step-by-Step Formation Process
DET – Department of Economy and Tourism, has made the process of starting a business almost fully online. Instead of visiting multiple offices, executives now go to one digital portal called ‘Invest in Dubai.’ This means that now the CEOs have a one-stop website where they can:
- Apply for their business license
- Upload documents
- Pay fees and track approvals
So, for a human entrepreneur today, the workflow is smoother, faster, and mostly paperless.
Ø Step 1: Activity Selection
To begin with, don’t just pick ‘General Trading’ because it sounds broad. In 2026, specific activities such as E-commerce or IT Consultancy may qualify for different R&D tax incentives. So, choose your activities from the DET list of 2,000+ options carefully.
Ø Step 2: Trade Name Reservation
Next, you need to register a name, which costs between AED 620 and AED 2,000. You might want to avoid names that include UAE or Dubai unless you are a large corporation, as these require special (and expensive) approvals.
Ø Step 3: Initial Approval
Once the name is finalized, you need approval from the system. This is basically a preliminary ‘No Objection’ document from the government. It takes roughly 24 to 48 hours, and then it confirms that the UAE has no issue with you becoming a business owner.
Ø Step 4: The Physical Office (Ejari)
Mainland companies cannot operate from a virtual desk in another country. You must have a physical lease (Ejari). This step is all about proving your business has a real presence in Dubai. However, this space isn’t just for show.
It directly impacts your visa quota. The rule of thumb is one visa per 100 sq. ft. This means that if a businessman plans to hire 10 employees, they will need at least a 1,000 sq. ft. office.
Ø Step 5: MOA and License Issuance
Last but not least, you sign your Memorandum of Association (MOA) digitally. Then, once the final fee voucher is paid, you receive your trade license. Woah! You just created a legal entity that must register for corporate tax submissions within 90 days.
How Much Does It Really Cost in 2026
| Phase | Line Item | Cost (AED) | Frequency |
| Setup | Trade Name & Initial Approval | 1,200 | One-time |
| Setup | MOA Notarization & Legal | 1,500 | One-time |
| Licensing | DET License Issuance Fee | 12,500 | Annual |
| Office | Virtual Office / Flexi-Desk Rent | 18,000 | Annual |
| Fees | Dubai Municipality Fee (5% of Rent) | 900 | Annual |
| Visa | Investor Visa (Medical + ID) | 4,800 | Every 2 Yrs |
| Visa | Establishment Card (Immigration) | 1,500 | Annual |
| Total | FIRST YEAR TOTAL | AED 40,400 | Year 1 |
Note: A realistic total for a professional license (consultancy) with 1 visa and a small office is approximately AED 35,000 to AED 45,000 in year one.
FAQs
– Do I need a physical office for a Mainland license?
Yes, the Mainland licenses require a physical address registered with Ejari. For startups, a Flexi-desk in a business center is the cheapest way to satisfy this mandatory legal office obligation.
– How much tax do I pay on the Mainland in 2026?
Profits under AED 375,000 are taxed at 0%. Profits above that are taxed at 9%. If your revenue is below AED 3 million, you can elect for Small Business Relief to pay nothing.
– What happens if I miss the 90-day tax registration?
Missing the 90-day deadline results in a mandatory fine of AED 10,000. So, it is important that every business registers for Corporate Tax through the EmaraTax portal immediately in 2026.
The Final Word
If you are still on the fence, ask yourself these three questions:
Where are my clients? If they are local UAE companies or the Dubai Government, go Mainland.
How many staff do I need? If you need a huge on-the-ground sales team, go for it.
Do I need a shopfront? If the brand is a cafe, gym, or retail store, Mainland is the only legal way.
All in all, the 9% corporate tax is a small price to pay for access to a market that is currently outperforming almost every other global financial center.