You expand a free zone company into mainland Dubai by applying for a license or permit from the Dubai Department of Economy and Tourism, known as the DET, rather than by closing your free zone company or building a second one from the ground up. Since March 2025, under Executive Council Resolution No. 11 of 2025, free zone companies outside the Dubai International Financial Centre can choose from three routes: a full mainland branch license, a headquarters branch license that keeps your base inside the free zone, or a shorter operating permit for specific activities. The right choice depends on how much mainland work you plan to do and whether you need a physical office outside your free zone.
What changed for free zone companies wanting to work in mainland Dubai?
Before March 2025, a free zone company that wanted to sell to mainland clients, bid for government contracts, or open a shop outside its free zone had two real options. It could set up an entirely separate mainland company, or it could route sales through a local distributor. Both added cost, extra paperwork, and a second set of ongoing compliance duties, so plenty of businesses just left mainland customers alone.
Executive Council Resolution No. 11 of 2025 replaced that arrangement with one licensing path run by the DET. A free zone company can now register a branch, or apply for a permit, to work across the emirate of Dubai while keeping its free zone license, its free zone staff, and, subject to the tax rules covered below, most of its existing tax position. The one group left out is financial firms licensed inside the Dubai International Financial Centre, which answers to its own separate regulator. You can read the Dubai Media Office announcement on the rollout for the full official detail.
Most business setup in Dubai still starts in a free zone, since it is quicker to register and keeps full foreign ownership from day one. This resolution is what lets that same company grow into the local market later, without unwinding what it already built.
What are the three ways to expand into mainland Dubai?
The DET issues three types of authorization under the resolution, and each suits a different stage of growth.
A mainland branch license sets up a full branch of your free zone company outside the free zone. This is the option for a business that expects steady, ongoing mainland activity and wants a real office address on the mainland. The branch has no separate legal identity. It stays tied to the parent free zone company, but it can sign local contracts, hire mainland staff, and hold a normal mainland trade license.
A headquarters branch license lets you keep your operational base inside the free zone while the branch itself is licensed to work in mainland Dubai. It costs AED 10,000 a year, runs for a year at a time, and suits a company that wants mainland market access without moving its office or renting a second, larger space.
The Free Zone Mainland Operating Permit is the fastest and cheapest of the three. It costs AED 5,000, runs for six months, and renews for another AED 5,000 each cycle. It was built for non-regulated activities such as technology, consultancy, design, professional services, and trading, and it currently requires a Dubai Unified License. Applications go through the Invest in Dubai platform, entirely online.
| Route | Best for | Cost | Physical office |
|---|---|---|---|
| Mainland Branch License | Regular, ongoing mainland trading with a real local presence | DET branch fee schedule, plus office and setup costs | Required |
| Headquarters Branch License | Mainland access while keeping your base in the free zone | AED 10,000 per year | Not required at the free zone base; branch address needed for the license |
| Free Zone Mainland Operating Permit | Specific, limited mainland activities and testing demand | AED 5,000, renewed every 6 months | Not required |
What documents and approvals do you need?
Every route asks for a similar core file, though a branch license adds a few extra layers.
You will need a copy of your free zone company’s memorandum of association, a copy of the current free zone trade license, and a copy of the manager’s passport and Emirates ID. You also need a No Objection Certificate from your free zone authority before the DET will look at your application, since the free zone has to confirm it is aware of and agrees to the expansion. If your business activity falls under a sector regulator, such as health, education, or financial services, you will need that regulator’s approval too, on top of the DET license or permit itself.
How do you apply for a mainland license or permit, step by step?
- Confirm your activity is eligible. Not every activity can move to the mainland under this framework yet, so check that your specific business activity appears on the DET’s published list before you commit time to the application.
- Get a No Objection Certificate from your free zone authority. This is the first real gate. Your free zone has to sign off that it is fine with you operating outside its boundaries under its license.
- Gather your documents. Pull together your memorandum of association, current trade license, and the manager’s passport and Emirates ID, along with any sector approvals your activity needs.
- Submit your application. A branch license goes through the DET directly. The Free Zone Mainland Operating Permit goes through the Invest in Dubai platform, and moves faster since it is a fully digital process built for this exact purpose.
- Wait for sector and licensing authority approval. Where your activity needs sign-off from a regulator, that approval has to come through before the DET issues anything.
- Pay the fee and receive your license or permit. Once approved, you pay the relevant DET fee and get your branch license or operating permit.
- Set up your mainland presence. For a branch license, this means signing a lease for a real office, since the address has to be verifiable. For the operating permit, you can usually keep working from your existing free zone premises for the activities the permit covers.
If the paperwork feels like a lot on top of actually running the business, this is exactly the kind of process that a business setup consultant handles every day. Firms such as HA Group work through the free zone NOC, the DET application, and the follow-up approvals on a client’s behalf, which mostly saves you time rather than money, since the DET fees themselves are fixed regardless of who submits the application.
Do you need a physical office in mainland Dubai?
It depends on the route. A mainland branch license needs a real, verifiable office address on the mainland, because the branch is meant to operate there day to day. The Free Zone Mainland Operating Permit was built to avoid that requirement. It lets you carry out the specific activities it covers without renting a second office, which is why it suits a company that is still testing how much mainland demand actually exists before committing to a lease.
What happens to your taxes once you expand into the mainland?
The UAE’s standard corporate tax rate is 9 percent on profit above the tax-free threshold, and mainland-sourced revenue generally falls under this rate once you start mainland activity, regardless of which of the three routes you use. Your free zone income can still qualify for the 0 percent rate, but only if it continues to meet the conditions for a Qualifying Free Zone Person, which include keeping adequate substance in the free zone and not mixing disqualifying mainland income into that free zone entity’s books.
In practice, this means you need to keep separate financial records for free zone activity and mainland activity from the moment your branch or permit goes live. The Federal Tax Authority expects that separation to be clean, not estimated after the fact, so most businesses set up distinct cost centers or a second set of accounts before their first mainland invoice goes out.
Branch license, headquarters branch, or operating permit: which fits your business?
If mainland work will become a steady, meaningful part of your revenue, and you are ready to staff a real office outside your free zone, a mainland branch license is the more durable choice. If you want mainland market access but see no reason to give up your free zone office, a headquarters branch license gets you a mainland-facing license at a fixed AED 10,000 a year without relocating.
If you are not sure yet how much mainland demand exists, or your mainland activity is occasional rather than constant, the Free Zone Mainland Operating Permit is the lower-risk entry point. At AED 5,000 for six months, it lets you test government tenders, local contracts, or mainland clients before you commit to a full branch and its running costs.
| Quick takeaway: match the license to how often you’ll actually be in the mainland, not to how big you hope to get. You can always upgrade from a permit to a branch license later. |
What happens if you are already working in the mainland without a formal license?
Businesses that were already active in mainland Dubai before the resolution had a one-year transition window from March 3, 2025, to bring their status into line under Executive Council Resolution No. 11 of 2025, which put the original deadline at March 2026. The DET Director General can grant a one-time extension of up to a further year, pushing the outer deadline to March 2027 for businesses that were granted it. Outside that window, operating in the mainland without the correct license or permit risks administrative fines and the loss of authorization to trade there at all, so if your business is already doing mainland work informally, applying now is the safer move rather than waiting for a compliance check to catch up with you.
Can a Dubai free zone company use this route to work in other emirates?
No. Resolution No. 11 of 2025 only covers activity within the emirate of Dubai. A Dubai free zone company that wants to work in Abu Dhabi, Sharjah, or any other emirate still needs separate approval from that emirate’s own authorities, following that emirate’s own rules. The Dubai framework does not carry over automatically just because your free zone license is valid across the wider UAE for certain purposes.
Frequently asked questions
Can a free zone company operate in mainland Dubai without opening a new company?
Yes. Since March 2025, a free zone company can apply to the DET for a branch license or a temporary operating permit and trade in mainland Dubai under that authorization, without setting up a second, separate company.
How much does it cost to expand a free zone company into mainland Dubai?
A headquarters branch license costs AED 10,000 a year. The Free Zone Mainland Operating Permit costs AED 5,000 for six months, renewable at the same fee. A full mainland branch license follows the DET’s standard branch fee schedule on top of office setup costs.
Do free zone companies pay corporate tax on mainland income?
Yes. Revenue earned from mainland activity is generally taxed at the standard 9 percent corporate tax rate, while free zone income can keep its 0 percent rate as long as it still meets the Qualifying Free Zone Person conditions.
Which free zone companies are excluded from this mainland expansion framework?
Financial firms licensed inside the Dubai International Financial Centre are excluded. Every other Dubai free zone company can apply, though the specific activity still has to appear on the DET’s approved list.
Do I need a No Objection Certificate before applying for a mainland license?
Yes. Your free zone authority has to issue a No Objection Certificate confirming it is aware of and agrees to your mainland expansion before the DET will process a branch license or permit application.
Conclusion
Expanding a free zone company into mainland Dubai now means applying for a DET branch license or operating permit, not starting over with a second company. Pick a mainland branch license for steady, office-based mainland trading, a headquarters branch license to keep your base in the free zone, or the Free Zone Mainland Operating Permit to test mainland demand at low cost. Whichever route you choose, keep your free zone NOC, your documents, and your tax records in order from day one.
Recommended Articles:
Are Freezone Companies Allowed to Trade in the UAE Mainland?
Can foreigners start a business in the UAE without a Sponsor?
Can I Start a Business in Dubai Without Living There?
Are Side Business Activities Allowed Under One License in the UAE?
How to Read Balance Sheets for UAE Companies? (Without Feeling Lost in the Numbers)
