If you have recently applied for a Mainland business license in the Dubai and got rejected, you are not alone. Something has changed in early 2026, and we want to share what we have seen firsthand so you know exactly what is going on and how to deal with it.
What Happened?
In January and February 2026 alone, 9 of our clients had their Mainland company applications rejected. All 9 were applying for business activities that require additional government approvals, such as approvals from DTCM (Department of Tourism and Commerce Marketing), RTA (Roads and Transport Authority), or the Food Department.
These were not random rejections. There was a clear pattern. Every single rejection happened because the main shareholder of the company was not physically present in the UAE at the time of applying.
The New Requirement
Here is what has changed: If your Mainland business activity requires any additional approval from a government department (DTCM, RTA, Food Department, etc.), the main shareholder must meet one of these two conditions at the time of applying:
- The main shareholder must be physically present in the UAE during the application.
- The main shareholder must already be a UAE resident (holding a valid residence visa).
Previously, the initial approval for Mainland companies would go through even if the shareholder was outside the UAE. That is no longer the case for activities that need additional departmental approvals. The DED (Department of Economic Development) is now rejecting these applications upfront.
Real Client Stories
Client 1: Holiday Homes Business from London, UK
One of our clients based in London wanted to start a Holiday Homes (Airbnb-style) business in Dubai as a Mainland company. This type of business requires DTCM/DET approval because it involves subleasing residential properties.
We submitted his initial approval application through the online portal. It got rejected. We then tried submitting it directly through the DET office in person. Rejected again.
When we followed up with the DET department through our contacts, we were told the reason was straightforward: because his business requires additional DTCM/DET approval for subleasing homes in Dubai, the main shareholder needs to be present in the UAE at the time of registration.
Once the client flew to Dubai and was physically in the country, we resubmitted the application. It was approved.
Client 2: Transport Business from the USA
Another client, this time from the USA, wanted to register a business that required RTA approval. Same story. She applied while she was still in the US, and her initial approval got rejected.
After we explained the new situation to her, she came to the UAE and we applied again. Approved without any issues.
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Get started free→What We Did for All 9 Clients
We contacted all 9 clients whose applications were rejected and explained the new requirement. We asked them to come to the UAE. Once they arrived, we resubmitted their applications, and every single one was approved.
The pattern is very clear: if your business needs additional government approval, you need to be in the UAE (or already be a UAE resident) for your Mainland initial approval to go through.
Important: Know What Your Initial Approval Should Actually Cost
During January and February 2026, many clients reached out to us after their applications were rejected by other business setup companies. What concerned us most was what these clients told us about refunds.
The initial approval at the DED Department only costs AED 180. That is it. If your initial approval gets rejected, the only cost that should be deducted is AED 180, and the rest of your payment should be refunded to you.
However, we found out that some companies were charging clients up to AED 8,000 even after the initial approval was rejected, and not refunding the full amount. That is not right.
At BusinessDubai.ae, our policy is simple: if your initial approval gets rejected, we deduct only the AED 180 government fee and refund the full remaining amount. No questions asked.
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Get a free consultation→So What Should You Do If Your Application Was Rejected?
If your Mainland company application was recently rejected and your business activity requires additional approval (DTCM, RTA, Food Department, or any other department), here is what you need to do:
- Do not panic. This is happening to many applicants right now. It is not something wrong with your documents or your business plan.
- Come to the UAE. The main shareholder needs to be physically present in the country at the time of application.
- Reapply for your initial approval. Once you are in the UAE, submit your application again. Based on all 9 of our cases, every resubmission was approved.
- Ask your current company about your refund. If you were charged a large amount and your initial approval was rejected, remember that the DED initial approval fee is only AED 180. You deserve a fair refund for the rest.
Which Business Activities Are Affected?
This new requirement applies to any Mainland business activity that needs an additional approval from a government department. Some common examples include:
- Holiday Homes and short-term rentals (requires DTCM approval)
- Transport and logistics businesses (requires RTA approval)
- Restaurants, cafes, and food businesses (requires Food Department approval)
- Tourism and travel agencies (requires DTCM approval)
- Any other activity that requires a secondary department sign-off before the license is issued
If you are unsure whether your business activity needs additional approval, feel free to reach out to us and we will check for you.
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Talk to a setup expert→A Note on Free Zone Companies
This change applies specifically to Mainland company registrations. If you are setting up a Free Zone company, you can still complete the process remotely from anywhere in the world. Free Zone setups do not require the shareholder to be in the UAE during registration (unless you are applying for a residence visa, which requires physical presence for Emirates ID and medical tests).
We Are Here to Help
At BusinessDubai.ae, we believe in being upfront with our clients. We are sharing this case study because we think every entrepreneur planning to set up a Mainland company in Dubai should know about this change before they spend money and time on an application that might get rejected.
We have helped over 600+ businesses register in the UAE, and we have seen how quickly rules can change. If you have questions about your specific situation, whether your business activity needs additional approval, or if you need help reapplying after a rejection, get in touch with us. We are happy to guide you through it.
Frequently Asked Questions
Why are Dubai Mainland company applications getting rejected in early 2026?
In January and February 2026, we saw a clear pattern across nine rejected client applications. Every rejection involved a business activity needing additional government approval, such as from DTCM, RTA, or the Food Department, and in each case the main shareholder was not physically present in the UAE when applying. The DED is now rejecting these applications upfront, whereas previously initial approval could go through even with the shareholder outside the country.
Does the main shareholder have to be in the UAE to apply for a Mainland licence?
If your Mainland business activity requires an additional approval from a government department like DTCM, RTA, or the Food Department, then yes. The main shareholder must meet one of two conditions at the time of applying: either be physically present in the UAE during the application, or already be a UAE resident holding a valid residence visa. For activities that do not need a secondary departmental sign-off, this case study does not establish the same requirement.
Which business activities are affected by this new requirement?
The requirement applies to any Mainland activity that needs an additional approval from a government department before the licence is issued. Common examples include holiday homes and short-term rentals needing DTCM approval, transport and logistics businesses needing RTA approval, restaurants, cafes and food businesses needing Food Department approval, and tourism and travel agencies needing DTCM approval. If you are unsure whether your activity needs a secondary sign-off, it is worth checking before you apply.
What should I do if my Mainland application was already rejected?
First, do not panic, because this is happening to many applicants and usually is not a problem with your documents or business plan. The main shareholder should come to the UAE and be physically present, then resubmit the initial approval application. Across all nine of our cases, every resubmission made once the shareholder was in the country was approved. You should also ask your current company about your refund.
How much should a DED initial approval actually cost, and what refund am I owed?
The initial approval at the DED Department only costs AED 180. If your initial approval gets rejected, the only amount that should be deducted is that AED 180 government fee, and the rest of your payment should be refunded. We found that some companies were charging clients up to AED 8,000 even after a rejection without refunding the full balance. If you were charged a large amount and your approval was rejected, you deserve a fair refund for the remainder.
Does this rule apply to Free Zone company setups as well?
No, this change applies specifically to Mainland company registrations. If you are setting up a Free Zone company, you can still complete the process remotely from anywhere in the world, and the shareholder does not need to be in the UAE during registration. The one exception is if you are also applying for a residence visa, which requires physical presence for the Emirates ID and medical tests.
