About EGSH
What Initial Approval Means for Your Business Setup
Initial approval is the formal first step in establishing a mainland company in Dubai. It confirms that the Dubai Department of Economy and Tourism (DET) has no objection to the applicant's proposed business activity, legal form, and ownership structure. The government fee for this service is AED 120.
Initial approval does not grant permission to trade. It is a preliminary clearance that allows the applicant to proceed with subsequent formation steps. These include reserving a trade name, signing a tenancy contract, notarising the Memorandum of Association (MOA), and applying for a trade licence in Dubai. Without initial approval, none of these steps can be completed through the DET system.
Apply for Initial Approval in Dubai
Officially regulated fees
No hidden charges
Queue-free service
VIP support at no extra cost
From AED 130
Explore EGSH Government Services in Dubai
Why Initial Approval Is Required
The DET reviews each initial approval request to verify that the proposed business structure complies with UAE licensing regulations. This review covers three areas: the selected business activity, the chosen legal form, and the ownership arrangement.
Dubai maintains a list of over 1,000 approved economic activities for mainland companies. Each activity is classified under a specific licence category — commercial, professional, or industrial. The DET checks that the applicant's selected activity is permitted and that it matches the intended licence type.
The legal form must also be compatible with the chosen activity. Common legal forms for mainland companies in Dubai include the Limited Liability Company (LLC), Sole Establishment, Civil Company, General Partnership, and Limited Partnership. Certain activities are restricted to specific legal forms under DET rules.
Following the reforms introduced by Federal Decree-Law No. 26 of 2020, foreign investors may own 100% of a mainland company for most commercial and industrial activities. A small number of strategic sectors, including oil exploration, banking, and telecommunications, may still require UAE national participation, as defined by Cabinet Resolution No. 55 of 2021.
Get Business Services in Dubai Through EGSH
Authorised One-Stop Government Services Centre
- All government services in one place
- Completed in one visit
- VIP service without queues
- Regulated government fees
Documents Required for Initial Approval
The documents required depend on the applicant's status and the proposed company structure.
Individual Applicants
Individual applicants must submit a passport copy. Non-GCC nationals must also provide a copy of their valid UAE residence visa or entry permit. An Emirates ID copy is required for UAE residents.
Corporate Applicants (UAE-Registered Companies)
A UAE-registered company applying for initial approval to open a new entity or branch must submit its current trade licence, Articles of Association or MOA, and a board resolution authorising the new establishment. The authorised signatory's Emirates ID or passport copy is also required.
Foreign Companies (Branch Registration)
Foreign companies seeking to open a branch on Dubai's mainland must provide the parent company's registration certificate, MOA, trade licence, and an authorisation letter for the designated representative. All foreign documents must be attested by the UAE Embassy and the Ministry of Foreign Affairs in the country of origin. They must then be counter-attested by the Ministry of Foreign Affairs in the UAE and legally translated into Arabic.
Additional Documents
A feasibility study is required for Private Shareholding Companies (PSCs) and Public Joint Stock Companies (PJSCs). A manager's authorisation letter may also be requested depending on the business type.
Why Choose EGSH for Government Services in Dubai
VIP Service
Personal assistance and priority processing with no queues.
Affordable Fees
Official government rates with transparent, fixed pricing.
All Services in One Place
Comprehensive range of UAE government services under one roof.
One-Visit Completion
Most procedures are completed in a single visit to the centre.
How to Apply for Initial Approval
Initial approval can be obtained through two channels: the Invest in Dubai portal or an authorised government service centre such as EGSH.
Online Application via Invest in Dubai
The Invest in Dubai portal is the official digital platform managed by the Government of Dubai. Applicants can create an account, select their business activity and legal form, upload supporting documents, and submit the initial approval request electronically. The portal also supports trade name reservation and subsequent licence issuance.
In-Person Application Through an Authorised Centre
Applicants may also submit their initial approval request through an authorised service centre. EGSH is an authorised DLD Real Estate Services Trustee Centre and processes DET applications through official government systems. The centre verifies the documents, submits the application, and processes the government fee payment. Most approvals are issued instantly when documents are complete and the activity does not require additional review. EGSH handles trade licence registration and initial approval applications as part of its mainland business formation services.
Validity and Expiry
Initial approval is valid for six months from the date of issuance. During this period, the applicant must complete all remaining company setup steps, including trade name reservation, tenancy registration (Ejari), MOA notarisation, and trade licence application.
If the initial approval expires before the trade licence is issued, the applicant must submit a new request and pay the government fee again. The DET does not offer extensions on the original approval. Businesses facing expiry before licence issuance must apply for initial approval renewal to maintain compliance.
What Comes After Initial Approval
Initial approval is one step in a multi-stage company formation process. The full sequence, as outlined by the Government of Dubai, involves the following stages.
Trade Name Reservation
The applicant must reserve a unique trade name through the DET. The trade name must comply with UAE naming conventions and reflect the chosen business activity. The reservation fee is AED 620, and the name is held for 180 days. Trade name reservation and initial approval are independent steps and can be completed in either order.
Tenancy Contract and Ejari Registration
A physical business address is mandatory for all mainland companies in Dubai. The applicant must sign a tenancy contract for office or commercial premises and register it through the Ejari system. The DET requires a valid Ejari certificate before issuing a trade licence.
Memorandum of Association
Companies with more than one shareholder must prepare a Memorandum of Association. The MOA defines the company's objectives, share capital, ownership distribution, and management structure. It must be notarised in Arabic. The notarisation fee depends on the declared share capital.
Visit EGSH for VIP Service Without Queues
You can stop by EGSH during working hours without an appointment or book your visit at a time that suits you best.
Address
Art of Living Mall, Al Barsha 2, Dubai
Operating hours
Monday–Thursday, Saturday: 9:00 am–5:00 pm
Friday: 9:00 am–12:00 pm, 2:00 pm–5:00 pm
Sunday: Closed
External Approvals
Certain business activities require additional clearance from regulatory bodies outside the DET. Examples include approval from the Dubai Health Authority (DHA) for healthcare activities, the Knowledge and Human Development Authority (KHDA) for education-related services, and Dubai Municipality for food-related establishments. These approvals must be obtained before the DET can issue the trade licence.
Trade Licence Issuance
After all preceding steps are complete, the applicant submits the full documentation package to the DET. This includes the initial approval certificate, trade name reservation, Ejari certificate, notarised MOA, and any external approvals. The DET reviews the file and, once satisfied, issues the trade licence. The licence authorises the company to begin commercial operations on Dubai's mainland.
Common Situations and Clarifications
Changing the Business Activity After Initial Approval
An applicant who wishes to change the proposed business activity after receiving initial approval must submit a new request. The initial approval is activity-specific, and any change requires a fresh assessment by the DET.
Initial Approval for Activities Requiring External NOCs
Some activities are flagged in the DET system as requiring a No Objection Certificate (NOC) from an external regulator. In these cases, the DET may issue conditional initial approval, subject to the applicant securing the relevant NOC before licence issuance. Attempting to operate a regulated activity without the required NOC can result in fines. The Dubai business licence amendment process specifies an administrative fine of AED 2,000 for adding or changing an authorised activity without prior approval.
Applying as a Free Zone Company
Initial approval through the DET applies only to mainland companies. Free zone companies are licensed by their respective free zone authorities, each of which has its own registration procedures. If a free zone entity wishes to extend operations to the mainland, it must obtain a separate DET licence or apply for a dual licence arrangement.
Related Government Services
Frequently Asked Questions
What is the initial approval for a business licence in Dubai?
Initial approval is a formal confirmation from the Dubai Department of Economy and Tourism (DET) that the proposed business activity, legal form, and ownership structure are acceptable under UAE regulations. It is the first step in the mainland company registration process and must be obtained before a trade licence can be issued.
How much does initial approval cost in Dubai?
The official government fee for initial approval is AED 120, payable to the DET. An additional AED 10 Knowledge Dirham and AED 10 Innovation Dirham apply per transaction.
How long is the initial approval valid?
Initial approval is valid for six months from the date of issuance. The applicant must complete all remaining formation steps within this period. If the approval expires before the trade licence is issued, a new application is required.
Can I apply for initial approval before reserving a trade name?
Yes. Initial approval and trade name reservation are independent procedures. They can be completed in either order through the DET or its authorised channels.
What documents are needed for initial approval?
Individual applicants must submit a passport copy. Non-GCC nationals also require a copy of their UAE residence visa or entry permit. Corporate applicants must provide their trade licence, MOA, board resolution, and authorised signatory identification. Foreign companies applying for branch registration need attested parent company documents.
Can a foreign investor apply for initial approval in Dubai?
Yes. Under Federal Decree-Law No. 26 of 2020, foreign investors may own 100% of a mainland company for most commercial and industrial activities. Non-GCC nationals must provide a valid UAE residence visa or entry permit alongside their passport when applying.
What happens if initial approval expires before I complete the business setup?
If the six-month validity period lapses before the trade licence is issued, the applicant must submit a new initial approval request and pay the government fee again. The DET does not extend the original approval.
Is initial approval the same as a trade licence?
No. Initial approval is a preliminary clearance confirming that the DET has no objection to the proposed business setup. It does not authorise the applicant to conduct business. A trade licence is the separate document that legally permits commercial operations.
Can I change my business activity after receiving initial approval?
Changing the business activity requires a new initial approval request. The original approval is specific to the activity, legal form, and ownership structure submitted in the application.
Where can I apply for initial approval in Dubai?
Initial approval can be submitted online through the Invest in Dubai portal or in person at an authorised service centre. Both channels process the application through official DET systems.
Explained by
Shaimaa Sayed Awais
Dubai Economy & Tourism (DET) Services Consultant at EGSH
Shaimaa Sayed Awais is a consultant specialising in Dubai Economy & Tourism (DET) services and business setup procedures. She supports entrepreneurs, investors, and companies in completing commercial licensing processes in compliance with UAE regulations.
Official Sources and References
- Dubai Department of Economy and Tourism (DET) — Licensing authority for all mainland businesses in Dubai. Manages initial approval, trade name reservation, and trade licence issuance.
- Invest in Dubai — Official Government of Dubai digital platform for business setup services, including online applications for initial approval and trade licence issuance.
- Government of Dubai — Starting a Business — Official portal outlining the steps, documents, and legal forms for establishing mainland and free zone companies in Dubai.
- UAE Government — Full Foreign Ownership of Commercial Companies — Federal-level guidance on ownership rights under Federal Decree-Law No. 26 of 2020 and related Cabinet resolutions.
- Ministry of Foreign Affairs (MOFA) — Responsible for attestation and legalisation of foreign documents required for company registration in the UAE.
- Dubai Health Authority (DHA) — Regulatory body issuing approvals for healthcare-related business activities in Dubai.
Important Notice
The information in this article is current as of the date of publication and is based on officially published regulations and government sources. Fees, document requirements, and procedures may change without prior notice. Final approval of any business licence application is at the sole discretion of the Dubai Department of Economy and Tourism and any other relevant government authority. Applicants are advised to confirm the latest requirements directly with the DET or through an authorised government service centre before submitting their application.
