Dr. Laura Voda February 9, 2026 The Department of Economy and Tourism (DET), Dubai, has recently introduced an update to the procedural requirements relating to the incorporation of new companies or subsidiaries in the Dubai mainland jurisdiction. The update affects foreign corporate shareholders who intend to incorporate their company or subsidiary in the Dubai mainland. As per the updated procedural requirement, effective February 2026, for the incorporation of mainland companies or subsidiaries in the Dubai involving one or more foreign corporate shareholders, the manager of the proposed Dubai mainland company must hold a valid UAE residence visa at the time of incorporation. Requirements Prior to February 2026 Update Previously, for the incorporation of a new company or a subsidiary with one or more foreign corporate shareholders in Dubai mainland, the proposed company was allowed to appoint any individual as the manager of the new company. It was not required for the proposed manager to hold a UAE residence visa. The only requirement was that the proposed manager had to have travelled to the UAE at least once. Requirements Effective February 2026 With effect from February 2026, as mentioned above, the DET has updated the requirements concerning the incorporation of a company or subsidiary where the shareholders are foreign entities. Under the new procedural update, it is now mandatory for the proposed company’s manager to hold a valid UAE residence visa at the time of incorporation. This means that the new company must appoint a manager with a valid UAE residence visa before initiating the incorporation application, and the Emirates ID of the appointed manager is now mandatory to begin the incorporation process in Dubai mainland. This ensures that the manager holds a valid UAE residence visa from the very start of the process. Implications This new mandatory procedural requirement for the manager to hold a valid UAE residence visa means that: Foreign corporate shareholders can no longer appoint just any individual as the manager of a new company or subsidiary in Dubai mainland. They must specifically appoint a manager who holds a valid UAE residence visa at the time of incorporation. The company incorporation application cannot be submitted without the Emirates ID of the appointed manager. Exemption It is important to note that this new procedural requirement applies exclusively to companies incorporated with foreign corporate shareholders in the Dubai mainland. In other words, companies where the shareholders are individuals or UAE-registered corporate entities are not subject to this requirement, and a non-resident individual can be appointed as the Manager. The incorporation of companies in Dubai Free Zones, as well as other mainland and Free Zone jurisdictions across the UAE, is not affected by this February 2026 procedural update. The February 2026 update represents a significant change in the incorporation process for new companies in Dubai mainland, particularly for companies that have foreign entities as shareholders. This change will significantly affect foreign entities intending to establish their presence in the Dubai mainland, as they must appoint a UAE-resident manager at the time of incorporation.
