Expanding your business beyond a Dubai free zone can open new opportunities, from working directly with mainland clients to securing local contracts. However, operating outside your free zone requires the appropriate authorization.
A dual license in Dubai can provide a pathway for eligible free zone companies to expand into mainland Dubai without necessarily establishing a separate company.
Here’s what businesses should understand about the available licensing options, eligibility, and compliance requirements.
Key Takeaways:
- A dual license allows eligible free zone companies to conduct approved activities in mainland Dubai.
- Businesses must obtain authorization from the Dubai Department of Economy and Tourism (DET).
- Three routes are available: a mainland branch, a branch operating from the free zone, or a temporary permit.
- Mainland activities require separate financial records and compliance with applicable regulations.
- Eligibility depends on the free zone, business activity, and relevant approvals.
Dual licensing is not a universal authorization. The appropriate structure depends on how and where the business intends to operate.
Can a Dubai Free Zone Company Operate on the Mainland?
Yes. A Dubai free zone company can legally conduct approved activities on the mainland after obtaining the required DET license or permit.
However, holding a free zone trade license alone does not automatically authorize mainland operations.
Businesses must assess their proposed activities, obtain the necessary approvals, and comply with applicable regulations before expanding.
What Changed Under Dubai Resolution No. 11 of 2025?
Executive Council Resolution No. 11 of 2025 established a clearer framework for eligible Dubai free zone establishments to operate beyond their designated zones.
The resolution introduced three authorization routes and specified requirements for licensing, approvals, and financial recordkeeping.
In October 2025, Dubai also launched the Free Zone Mainland Operating Permit, allowing eligible businesses holding a Dubai Unified Licence (DUL) to apply for temporary mainland operating authorization.
What Mainland License or Permit Options Are Available?
Businesses can consider three options:
1. Mainland Branch License
Allows an eligible free zone company to establish a branch at an approved mainland Dubai location. The license is valid for one year and renewable.
2. Branch Operating From the Free Zone
Allows approved mainland activities through a branch operating from the free zone. The license is renewable annually, with a DET fee of AED 10,000 per year.
3. Temporary Mainland Operating Permit
Authorizes specified mainland activities for up to six months. The announced Free Zone Mainland Operating Permit costs AED 5,000 and is renewable for the same fee.
Additional fees and approvals may apply depending on the chosen route.
Which Free Zone Businesses Are Eligible?
Eligibility depends on several factors:
- The company’s Dubai free zone registration and valid trade license
- The proposed mainland business activities
- Approval from the relevant free zone authority
- DET requirements and additional sector-specific approvals
Financial establishments licensed in the Dubai International Financial Centre are excluded from Resolution No. 11 of 2025.
Businesses should confirm eligibility before applying, as requirements differ between free zones and authorization routes.
What Activities Can Be Conducted on the Mainland?
The initial Free Zone Mainland Operating Permit covers eligible non-regulated activities, including technology, consultancy, design, professional services, and trading.
However, not every activity within these categories automatically qualifies.
Regulated activities may require further permissions, while certain activities may not be available under the selected license or permit.
Creative Zone helps businesses assess their existing free zone company setup and determine which mainland activities may be authorized.
What Documents and Approvals Are Required?
Documentation varies by authorization route but may include:
- A valid free zone trade license
- Memorandum of Association (MoA)
- Approval from the free zone licensing authority
- Manager’s passport and Emirates ID, where required
- Completed DET application documents
- Additional approvals for regulated activities
Eligible applicants for the announced operating permit must also satisfy the applicable Dubai Unified Licence requirements.
Do You Need a Separate Mainland Office?
Not necessarily.
A branch operating from an approved free zone location may not require an additional mainland office. However, a branch established on the mainland requires an appropriate Dubai location.
Individual free zones may impose additional workspace requirements. For example, JAFZA’s operating permit guidance requires a physical free zone office rather than a virtual office or flexi-desk.
Office eligibility should therefore be assessed before applying.
What Are the Tax, Accounting and Compliance Requirements?
Businesses expanding from a free zone to mainland Dubai must maintain separate financial records for their mainland activities.
Other important considerations include:
- Corporate Tax:Â Mainland operations may affect eligibility for the 0% rate on qualifying free zone income. The applicable tax treatment must be assessed.
- VAT:Â Existing registration, invoicing, and reporting obligations must be reviewed.
- Regulatory compliance:Â Businesses remain subject to applicable legislation, inspections, and licensing renewals.
Creative Zone’s tax and accounting services can help businesses assess these obligations.
Dual License vs Mainland Branch vs New Mainland Company
The right structure depends on your expansion objectives.
| Option | Best suited for |
| Temporary dual-licensing permit | Approved short-term mainland activities |
| Licensed mainland branch | Ongoing mainland operations under an existing free zone company |
| New mainland company | Businesses seeking a separate legal entity for long-term mainland operations |
A branch license is itself one of the dual-licensing routes.
For businesses considering a more independent structure, Creative Zone also provides support with mainland company formation in Dubai.
How to Expand Your Free Zone Business to Mainland Dubai
The process generally involves five steps:
- Assess your activities:Â Identify the mainland operations your company intends to conduct.
- Confirm eligibility:Â Review the applicable free zone rules and DET licensing options.
- Prepare documentation:Â Obtain corporate documents and required approvals.
- Apply for authorization:Â Submit the appropriate application and pay the applicable fees.
- Maintain compliance:Â Establish separate accounting records and manage ongoing regulatory obligations.
With 16 years of experience and more than 75,000 founders and businesses supported, Creative Zone helps businesses navigate licensing, approvals, and ongoing compliance.
Whether you’re exploring dual licensing or considering a new mainland structure, our experts can help you identify the right approach for your expansion.
Book a Free Consultation to discuss your mainland expansion plans.
Frequently Asked Questions
1. Can a Dubai free zone company legally operate on the mainland?
Yes. Eligible companies can operate on the mainland after obtaining the appropriate DET license or permit and required approvals.
2. What is a dual license in Dubai?
It refers to licensing arrangements that allow an eligible free zone company to undertake specified mainland activities without necessarily establishing a separate company.
3. Which free zone companies are eligible for a Dubai dual license?
Eligibility depends on the Dubai free zone, approved business activities, valid licensing, and regulatory requirements.
4. Do I need a separate mainland office with a dual license?
Not always. Office requirements depend on the authorization route and the relevant free zone’s conditions.
5. Is a dual license better than opening a new mainland company?
A dual-licensing route may suit businesses expanding from an existing free zone structure. A separate mainland company may be preferable for more independent, long-term operations.
