Can a free zone company in mainland Dubai sell products, sign contracts and serve local customers? For many years, the answer was no. To reach mainland customers, a free zone company needed a distributor or a second company.
That changed in 2025. Under Dubai Executive Council Resolution No. 11 of 2025, Dubai free zone companies can apply to the Department of Economy and Tourism (DET) for a permit or a branch license to do approved activities in mainland Dubai. In October 2025, DET launched the Free Zone Mainland Operating Permit, which costs AED 5,000 for six months.
In this guide, we explain how a free zone company in mainland Dubai can work legally in 2026: the routes, the costs, the steps and the tax rules.
At Aspira Business Setup Services, we have 12+ years of experience and have formed 5,000+ companies for 4,500+ clients in Dubai mainland and all UAE free zones. We help you choose the route that really fits your business.
Can a Free Zone Company Work in Mainland Dubai? The Short Answer
Yes, but only with the right approval. A free zone license alone does not let you trade or provide services directly in mainland Dubai. To run a free zone company in mainland Dubai legally, you need one of these:
- The DET Free Zone Mainland Operating Permit
- A DET branch license under Resolution No. 11 of 2025
- A mainland distributor or commercial agent
- A separate mainland company
Working in the mainland without approval can lead to fines and license problems. For most small businesses, the new permit is now the simplest way to start.
What Changed With Resolution No. 11 of 2025?
Resolution No. 11 of 2025 came into force in March 2025. It sets the rules for a free zone company in mainland Dubai. The main points are:
- It covers companies licensed by Dubai free zones. DIFC companies are excluded.
- It created three options: a branch with its own mainland premises, a branch that works from the free zone office, and a temporary permit.
- DET publishes the list of allowed activities for each option.
- You need prior approval from your free zone, and from any regulator that controls your activity.
- You must keep separate financial records for mainland work.
- Your free zone staff can work on mainland jobs.
- It covers Dubai only.
Companies already working in the mainland had one year to regularise their status, and that grace period ended in March 2026. If your free zone company in mainland Dubai still works without a permit, fix this now.
The Free Zone Mainland Operating Permit Explained
On 8 October 2025, the Dubai Business Registration and Licensing Corporation (DBLC), part of DET, launched the Free Zone Mainland Operating Permit with the Dubai Free Zones Council. For a free zone company in mainland Dubai, it is the simplest route because it is online and low cost.
| Feature | Details |
|---|---|
| Who can apply | Dubai free zone companies that hold a Dubai Unified License (DUL) |
| Allowed activities (first phase) | Non-regulated activities such as technology, consultancy, design, professional services and trading |
| Not covered yet | Regulated activities (planned for a later phase) |
| Where to apply | Invest in Dubai platform, fully online |
| Government fee | AED 5,000 |
| Validity | Six months, renewable for the same fee |
| Staff | You can use your existing staff |
| Accounts | Separate financial records for mainland work |
| Government tenders | Permit holders can bid for government tenders and contracts |
Based on the official DET and Dubai Media Office announcement of October 2025. Fees, activity lists and conditions can change. Contact Aspira to check your activity before you apply.
What Is the Dubai Unified License (DUL)?
The DUL is a unique number that links every Dubai trade license to Dubai’s central business register. You don’t apply for it separately. It is created when DET or a Dubai free zone issues or renews your license.
Which Free Zones Can Use the Permit?
Companies licensed by Dubai free zones, such as DMCC, IFZA, Meydan Free Zone, JAFZA, DAFZA, Dubai Silicon Oasis and Dubai South, can use this route if their activity is allowed. DIFC companies are excluded. Free zones in other emirates, such as RAKEZ, SHAMS and Ajman Free Zone, are not covered.
Other Ways to Run a Free Zone Company in Mainland Dubai
The permit is not the right choice for every free zone company in mainland Dubai. Here are the other routes.
Branch License Under Resolution No. 11
A branch license is valid for one year and renewed every year. The Resolution sets a fee of AED 10,000 a year for a branch that works from the free zone office. A branch with its own mainland premises also needs a registered mainland office, so rent is extra. A branch suits a free zone company in mainland Dubai with steady, long-term work.
Mainland Distributor or Commercial Agent
This is the traditional route for goods. A mainland distributor buys your products and sells them to local customers. You don’t need a new license, but you give up part of your margin and control. Customs duty is usually due when goods move from a free zone into the mainland, at 5% of the value for most goods.
Separate Mainland Company
A mainland company can serve customers across the UAE, including regulated activities and shops open to the public. Most activities now allow 100% foreign ownership. Aspira’s mainland company packages start from AED 18,000 with a virtual office. The downside is a second license and a second set of accounts.
Dual Licenses in Other Emirates
Some free zones outside Dubai offer their own mainland access. RAKEZ companies can get a branch license from RAK DED and use the same free zone office for the Ras Al Khaimah mainland. Some Abu Dhabi and Sharjah free zones offer similar dual licenses. These cover only that emirate, not Dubai.
Moving Your Company to the Mainland
Federal Decree-Law No. 20 of 2025 amended the UAE Commercial Companies Law to allow companies to move between a free zone and the mainland without losing their legal identity. The detailed rules come from the Cabinet and the licensing authorities, so check the current process with us first.
Comparison Table: Best Route for a Free Zone Company in Mainland Dubai
| Route | Government cost | Validity | Best for | Main limit |
|---|---|---|---|---|
| Free Zone Mainland Operating Permit | AED 5,000 | Six months, renewable | Testing the market, consultancy, tech, design, trading | Non-regulated activities only |
| Branch license from the free zone office | AED 10,000 a year | One year, renewable | Steady mainland work without a second office | Activity must be on DET’s list |
| Mainland distributor or agent | Margin or commission | As per contract | Selling goods to local buyers | Less control, lower margin |
| Separate mainland company | From AED 18,000 with Aspira (with virtual office) | One year, renewable | Most customers in the UAE, regulated activities, retail | Higher cost, two sets of accounts |
| Dual license in another emirate | Depends on the free zone | Usually one year | RAKEZ, Abu Dhabi and Sharjah free zone companies | That emirate only |
Permit and branch fees are from DET’s October 2025 announcement and Resolution No. 11 of 2025. Office rent, VAT, accounting and other approvals are extra. Contact Aspira for an exact quote.
Which route is right for a free zone company in mainland Dubai? To test the market, start with the permit. If mainland work becomes most of your business, a mainland company is usually better.
How to Get the Mainland Permit (Step by Step)
Follow these steps to get your free zone company in mainland Dubai working legally:
- Check your activity. Make sure it is on DET’s list and see whether it needs a permit or a branch license.
- Check your license. Your free zone license must be valid and carry a DUL number.
- Get approvals. Ask your free zone authority for its No Objection Certificate (NOC), and get approval from any other body that controls your activity.
- Apply online. Submit your application on the Invest in Dubai platform.
- Upload documents. Usually your trade license, Memorandum of Association, shareholder and manager IDs, and the free zone NOC.
- Pay the fee and get your permit. After DET approves, download your permit.
- Set up your accounts. Keep separate records for mainland work and register for VAT if needed.
- Renew on time. The permit lasts six months, so set a reminder.
Our PRO services team can prepare the documents and handle the application for you.
Corporate Tax and VAT Rules for Mainland Work
Mainland work changes the tax position of a free zone company in mainland Dubai, so plan it first.
- Corporate tax is 9% on taxable profit above AED 375,000. Mainland income is usually taxed at 9%.
- A Qualifying Free Zone Person can get 0% only on qualifying income. Income from mainland customers is usually not qualifying income.
- If non-qualifying revenue goes above a small limit (the lower of 5% of total revenue or AED 5 million), the company can lose its 0% status for that year and the next four years.
- DET and the Federal Tax Authority (FTA) expect separate records for free zone and mainland work.
- VAT registration is mandatory once taxable supplies pass AED 375,000. Most mainland sales carry 5% VAT.
Ask a tax adviser how mainland income will affect your free zone company in mainland Dubai before you apply. Read our guides to corporate tax registration in Dubai and VAT consultancy in Dubai.
Common Mistakes to Avoid
Avoid these mistakes when you set up a free zone company in mainland Dubai:
- Working without approval: invoicing mainland clients with only a free zone license can lead to fines.
- Applying with the wrong activity: regulated activities are not covered yet.
- Mixing your accounts: keep free zone and mainland income separate from day one.
- Losing 0% tax status by surprise: large mainland income can cost you your Qualifying Free Zone Person status.
- Letting your free zone license expire: the permit depends on it.
- Missing the renewal: the permit lasts only six months.
- Choosing a permit when you need a mainland company: shops, clinics and regulated businesses usually need a mainland license.
Why Choose Aspira for Your Free Zone Company in Mainland Dubai?
- 12+ years of experience in UAE business setup
- 5,000+ companies formed for 4,500+ clients
- Company setup in Dubai mainland, all UAE free zones and offshore
- Honest advice on permit vs branch vs mainland company
- Help with free zone NOCs, DET applications and renewals
- One team for licenses, visas, PRO services, bank account help, corporate tax and VAT
- Free zone packages from AED 5,565 and mainland packages from AED 18,000
Related Organizations
- Department of Economy and Tourism (DET): mainland licensing and the permit
- Dubai Business Registration and Licensing Corporation (DBLC): part of DET
- Dubai Free Zones Council: works with DET on free zone rules
- Invest in Dubai platform: the online application portal
- Federal Tax Authority (FTA): corporate tax and VAT registration
- Your free zone authority, such as DMCC, IFZA or Meydan Free Zone: issues the NOC
Frequently Asked Questions
Q: Can a free zone company in mainland Dubai work directly with local clients?
A: Yes, with DET approval. The easiest route is the Free Zone Mainland Operating Permit. Other routes are a branch license, a distributor or a mainland company.
Q: How much does the Free Zone Mainland Operating Permit cost?
A: The government fee is AED 5,000 for six months, renewable for the same fee.
Q: Which activities are allowed under the permit?
A: In the first phase, non-regulated activities such as technology, consultancy, design, professional services and trading.
Q: Can a DIFC company use this permit?
A: No. DIFC companies are excluded from Resolution No. 11 of 2025.
Q: Can a RAKEZ, SHAMS or Ajman free zone company work in mainland Dubai?
A: The Dubai permit is for Dubai free zone companies. Companies from other emirates usually need a Dubai branch or a separate Dubai mainland company.
Q: Does a free zone company in mainland Dubai need a mainland office?
A: Not for the permit or a branch that works from the free zone office. A branch with its own premises, or a business open to the public, needs a mainland location.
Q: Can a free zone company in mainland Dubai bid for government tenders?
A: Yes. DET says permit holders can bid for government tenders and contracts.
Q: Will my free zone company in mainland Dubai pay corporate tax?
A: Yes. Mainland income is usually taxed at 9% on taxable profit above AED 375,000, and it can affect your Qualifying Free Zone Person status.
Q: Do I need to register for VAT?
A: Yes, once your taxable supplies pass AED 375,000.
Q: Do I need to hire new staff for mainland work?
A: No. You can use your existing free zone staff.
Q: Is a mainland company better than a permit?
A: If most of your customers are in the UAE, or your activity is regulated, often yes. For testing the market, the permit is cheaper.
Get Expert Help With Your Free Zone Company in Mainland Dubai
Not sure whether you need a permit, a branch or a mainland company? Contact Aspira for a free consultation and a clear plan for your free zone company in mainland Dubai.
Aspira Business Setup Services LLC
- Phone/WhatsApp: +971 56 406 6546
- Email: info@aspiradubai.com
- Website: aspiradubai.com
- Office: 1001, First Floor, Al Nasr Central, 10th Street, Oud Metha, Dubai
