Can a Free Zone Company Do Business in the Mainland UAE: Legal Guide to Permits, Process, Rules, Fees, & Taxes

Can a free zone company do business in the mainland UAE?

Yes, a free zone company can do business in the mainland UAE. This works only when companies get proper permits and obey simple rules from the Department of Economy and Tourism (DET). The change started in March 2025 with Dubai’s Executive Council Resolution No. 11. Free zone companies now sell right to mainland buyers without middlemen or extra companies.​

What Mainland Trading Looks Like for Free Zone Firms

Mainland trading means selling items, giving services, starting offices, or joining government bids. Small startups and large companies gain entry to a giant home market free zones missed before. Dubai free zone company selling in mainland legal become easy. Branch permits, or short-term okay letters, skip local sponsors. It fits the UAE’s D33 goal to double Dubai’s economy by 2033.​

How is the Free Zone Compared to the Mainland in UAE

Places like DMCC, IFZA, or RAKEZ let owners keep 100% foreign ownership, pay 0% tax on qualifying income, and bring in goods fast. Great match for export or tech work. Mainland under DED/DET lets businesses run all over the UAE, team with the government, and help local people easy. The new rules bridged the space, allowing a free zone company to do business in the Dubai mainland with branches.

How Can a Free Zone Company Do Business in the Mainland UAE? Steps to Follow

Step 1: Get NOC from Free Zone

Ask your free zone office (DMCC, IFZA, RAKEZ) for a No Objection Certificate. Shows they say “yes” to mainland work. Takes 1-3 days.​

Step 2: Check Activities Match

Make sure mainland jobs exactly match your free zone trade license. No new work allowed.​

Step 3: Apply to DET/DED

Send online to the Department of Economy and Tourism: NOC + trade license + board resolution + business plan. Pick a branch license (AED 10K/year) or a temporary permit (AED 5K/6 months).​

Step 4: Set Up a Separate Bank Account

Open a new bank just for mainland money. Protects 0% free zone tax. Mix = lose tax perks forever.​

Step 5: Handle VAT & Renew Yearly

Register VAT if sales are over AED 375K. Pay 5% customs on goods only. Renew license every year or face AED 100K fines.​

Total Time: 3-6 weeks. If you follow all the steps for free zone company to operate in mainland.

What are the Rules That Allow Free Zone Mainland Access

• Free zone companies can sell to buyers in mainland Dubai and across the UAE.
• Dubai’s Department of Economy and Tourism (DET) created easy new rules.
• Companies use a branch license, a headquarters-run branch, or a short-term permit.
• These options save free zone tax perks and unlock big mainland chances.

What is Dubai’s 2025 Resolution

• Dubai’s Executive Council passed Resolution No. 11 in March 2025.
• This new rule lets free zone companies work right in the mainland.
• No need for a fresh mainland company or distributors now.
• Get a branch license or a DET permit to sell goods and services.
• Companies working quietly in the mainland have until March 2026 to go legal.
• The rule helps Dubai grow its economy by 2033.​

What is Law No. 13 of 2011: Branch Rules

• Law No. 13 from 2011 allows free zone companies to start mainland branches before 2025.
• The company needs a “No Objection Certificate” (NOC) from the free zone first.
• No license means fines up to AED 100,000.
• This made the first legal way for free zone companies in the Dubai mainland.​

What are the Legal Rules for Mainland Operations

• DMCC, IFZA, and RAKEZ zones set their own rules for 100% foreign ownership.
• DET plus UAE government laws run mainland Dubai.
• Free zone companies in the mainland keep bank records apart.
• Only mainland money pays 9% tax; the free zone stays tax-free.
• Follow rules for workers, VAT, and safety, too.

What are the Free Zone Company Mainland Rules

• Free zone companies apply to DET for mainland licenses to work there.
• Need a business plan, free zone trade license, board resolutions, and NOC.
• Abu Dhabi uses the same rules, but an easier office process is required for the Abu Dhabi branch licence for free zone company.
• Comply with free zone companies in the mainland to save tax perks.
• The cost of mainland branch licence UAE is AED 10,000 yearly in Dubai.
• New rules let free zone firms grow sales and services to the mainland easy and legal.​

What are the Legal Ways Free Zone Companies Reach the Mainland

• Mainland Branch License (AED 10,000/year): Start a real office in the mainland.​
• Branch Operated From Free Zone HQ: No extra office – use free zone spot.​
• Temporary Permit (AED 5,000/6 months): Great for quick jobs, events, tests.​
• Separate Mainland Entity: A New full company for big government work.

How Free Zone Companies Start Mainland Work: How to Start Legal Operations

Mainland Branch of Free Zone Company

• Fully owned by the free zone parent. Uses the same company name and license. Sells straight to mainland buyers.​

Get Mainland Branch License

• DET checks activities match the free zone license. Must renew every year.​

Start Mainland Branch or Subsidiary

• Send business plan + documents required for free zone to mainland expansion. Add lease paper, money reports.​

Branch Run From Free Zone HQ

• No need for mainland office. Current workers do onshore jobs.​

RAKEZ Dual License

• One license works for the free zone + RAK mainland. Best for Northern Emirates growth

What are the Temporary Permits: Short-Term Mainland Permits for Free Zone Companies

• Short permits help free zone companies do mainland jobs like events or trials.
• Cost AED 5,000, good for 6 months – best test before full branch.
• Perfect for a Dubai free zone company selling in mainland legal for quick projects.​

How to Get Special Activity Permit: Steps to Follow

• Ask DET for a special activity permit for short mainland work, like services or tests.
• Send job details + time needed. Great market, try without big promises.
• Start with free zone NOC, then the steps for free zone company to operate in mainland.​

Why Pick a Distributor or Agent?

• Mainland distributor sells your goods without you going there direct.
• They do local sales, you stay free zone easy, but split the money.
• Still do compliance for free zone companies in mainland, like VAT papers.​

What are the New Mainland Company Options

• Make a separate mainland company (new LLC) for big government jobs.
• More papers, but full mainland free work, good long growth.
• Keeps the free zone tax safe if the bank books stay apart.​

Why Team Up with Partners?

• Team free zone + mainland firms to share risk and buyers.
• Local friends help with rules, and you give skills.
• Joint ventures mix free zone power with mainland know-how. Share own money, top for a free zone company doing business in Dubai mainland.

What are the Steps Before Mainland Work Starts

Step 1: Ask the free zone office (DMCC, RAKEZ) for a “No Objection Certificate” (NOC).​

Step 2: Send papers and plan to Dubai DET or local DED.​

Step 3: Make mainland jobs match the free zone license exactly.​

Time Needed: 2-4 weeks, okay + 1 year full rules (by March 2026).​

What are the Rules to Follow?

• Keep two bank books, one free zone, one mainland only.​
• Obey UAE tax, worker, and safety rules for mainland jobs.​
• Renew the license yearly, or the business closes, and extra fees come.​

Can a free zone company do business in the mainland UAE: Legal Rules to Know

• Compliance for free zone companies in mainland means VAT over AED 375,000 in sales.​
• No banks, insurance, or healthcare without extra okay.​
• Free zone company corporate tax rules in mainland: 9% tax just mainland sales, free zone 0%.​

Which Documents are Needed for the Free Zone to Mainland

Must-Have Papers:​

• No Objection Certificate (NOC): Free zone says “yes to mainland.”​
• Free Zone Trade License Copy: Proves your business is legal​
• Board Resolution: Owners vote “OK for mainland work.”​
• Financial Statements (2 years): Shows the business is healthy​
• Lease Agreement: Office proof (sometimes skip year 1)​
• Business Plan: Lists exact mainland activities​

Pro Tip: Scan all in PDF, under 5MB each, for the DET portal. Check all the documents required for the free zone to mainland expansion.

What are the Essential Licenses & Permits Needed

Free Zone Authority

• First, get a No Objection Certificate (NOC) from the DMCC, IFZA, or RAKEZ office. 
• Paper says “yes to mainland” – ready in 1-3 days. 
• No NOC means DET says no.​

Send to DED or DET

• Give to the Dubai DET or the local DED office. 
• Upload NOC, free zone trade license, company papers, and business plan online.

Costs: AED 10,000/year branch, AED 5,000/6 months permit.​

How to Get Mainland Licence for Free Zone Company

• Free Zone NOC: Zone says okay.
• DET Application: Send papers online.
• Activity Check: Mainland jobs match free zone license.
• Pay & Get License: 2-4 weeks.​

What are the Documents Required for Mainland Licenses

• Free Zone Trade License: Proves the business is real.
• NOC from Free Zone: Zone approval.
• Board Resolution: Owners vote yes for the mainland.
• Lease Agreement: Office proof (skip the first year sometimes).
• Financial Statements: Show the business is strong.​

Are There Any Extra Permissions for Special Jobs?

• Real Estate: RERA needed.
• Healthcare: MOHAP or DHA license.
• Education: KHDA approval.
• Finance: Central Bank or SCA permit.​

What are the Job Match and Other Rules to Follow

Job Match

• Mainland works the same as a free zone license only. 
• Example: Free zone “IT consulting” = mainland IT consulting. Wrong jobs = no license or AED 100K fine.​

Separate Money Books

• Two bank books: Free zone one, mainland only one. 
• Saves 0% free zone tax; the mainland pays 9%. Free zone company corporate tax rules in the mainland need clear books or lose perks.​

VAT Sign Up 

• Sign VAT if mainland sales are over AED 375,000/year. 
• Add 5% VAT to sales, send every 3 months. Free zone sales have no VAT if apart.​

Customs Rules 

• Pay 5% tax on moving goods free zone to the mainland. 
• Get the customs code for the branch to clear fast. Services no tax, goods only.​

Worker Rules

• Free zone workers do mainland jobs, update papers. 
• New mainland staff need MOHRE visas + health insurance. 48-hour week + overtime for the mainland.​

What are the Tax Updates for Mainland Operations

• Company Tax: Mainland money: 9% tax on UAE sales only. Free zone money: 0% if books are apart and qualify. Free zone company corporate tax rules in mainland: Track mainland separate or lose 0%.​
• VAT: VAT sign up over AED 375,000 mainland sales. 5% on all mainland (services + goods). Free zone world sales no VAT.​
• Custom: 5% goods tax-free zone to the mainland. Services free. Get the branch customs code.​

How Much Does the License Cost

Government Fees

• Mainland Branch License: AED 10,000/year, yearly renew.
• Temporary Permit: AED 5,000/6 months.
• VAT: Free start + 5% sales/3 months.​

What are the Timelines? 

• Free Zone NOC: 1-3 days.
• DET/DED: 2-4 weeks.
• VAT: 20 work days.
• Total: 3-6 weeks.​

What are the Documents Required for Free Zone to Mainland Expansion

• Free zone trade license copy.
• No Objection Certificate (NOC).
• Board resolution for the mainland.
• 2 years’ money statements.
• Lease (maybe skip year 1).
• Mainland job plan.​

What are the Restrictions and Challenges for Mainland Business setup

• Jobs: Still No-Go, No banks, insurance, healthcare, or real estate without an extra license. DIFC zones own rules, not the mainland. Mainland jobs match the free zone license.​
• Free Zone Mainland Limits: No sales without a DET license/permit. No government bids without full mainland. Free zone goods to the mainland 5% tax.​
• Branch Start with DED: Free zone NOC first, then DED/DET. The branch uses a free zone name, no new company.​
• Branch Jobs Allowed: Same as free zone (IT, consulting, trade). No new jobs without change.​
• Risks & Hard: Lots of papers + many prefer slow start. Tax mix loses 0% free zone. AED 100K fines for wrong work.​
• Rules: Must separate money books required. Yearly license or stop.​
• No-Rule Fines: AED 100K + license stop. Close repeat bad. Lose free zone tax forever.​
• Changes Needed: Fix contracts, banks, visas. New mainland bill + report ways.​
• Don’t Do These: No free zone NOC. Mix free zone + mainland money. New jobs, no license change. Skip VAT over AED 375K.​

What are the Perks and Benefits for the Free Zone Mainland Operation

Free zone firms grow huge with 10M+ UAE buyers + billion AED government jobs.​

• Sell Everywhere

Dubai shops, Abu Dhabi offices, Sharjah plants. No middleman, sell locals + expats direct. World + home no limits.​

• More Buyers

10M UAE people direct. GCC + Africa/Asia from the UAE spot. B2B + B2C are all open.​

• Government Jobs 

Billions AED for roads, schools, and hospitals yearly. IT/smart city work. Trade/supply government.​

• Free Work Anywhere UAE 

Dubai, Abu Dhabi, Sharjah, no zone stop. Many branches, 7 emirates. Unlimited visas by office size.​

• Better Seen & Friends 

UAE shows + events are free. Build a local brand. Talk government + big firms direct.​

Top Win Jobs

• IT/Consulting: Firm clients direct.
• Trading/Retail: UAE shops + people.
• Construction: Big government builds.
• E-commerce: Local stores + fast ship.​

What are the Job Possibilities: Free Zone vs Mainland

Free Zone vs Mainland Jobs

• Activities: Free Zone 200-500/zone. Mainland 2,000+ in the UAE.
• Locations: Free Zone only. Mainland, all emirates.​

Ownership & Tax

• Ownership: Free Zone 100% foreign. Mainland Branch 100% parent.
• Tax: Free Zone 0% qualify. Mainland 9% mainland only.​

What are the Plans for Business Types?

• Consulting/Services: Temporary license test 6 months (AED 5,000). Direct IT/Legal clients are 40% better with no distributors. The HQ branch has no new office, legal mainland service.​
• E-Commerce: Local warehouse + Dubai free zone company sells mainland legal. UAE fast ship beats the world (TechBridge 60% growth). VAT early at AED 375,000 sales.​
• Trading: Mainland branch license (AED 10,000/year), direct UAE sales. 5% customs duty is easy. Shop team – eJaby “Future 100 UAE”.​
• Events/Projects: Special permits fit short events/jobs. Government bids (build/IT big money). Network grow – QYUBIC 48 hours launch.​

What are the Mainland Next Steps: Future Plans

• Abu Dhabi + North Emirates copy Dubai 2025 by 2026. 
• Dual licenses boom – free zone + mainland one pack everywhere. 
• AI/Tech focus, government bids like the mainland are best. E-commerce boom, local warehouse + fast UAE ship must.

5 Expert Tips for Free Zone Mainland Success

• NOC Day 1: Free zone approval (DMCC/RAKEZ) takes 1-3 days only​
• Test cheap: AED 5K temporary permit proves the market before the AED 10K branch​
• Banks separate NO:  Mix loses 0% free zone tax forever​
• Activities exact match:  Mainland = free zone license only, no extras​
• VAT at AED 375K:  Register early or AED 50K fines hit fast.

Our experts from PRO Services in Dubai can help you manage the whole process. They are the licensed Business setup consultants in Dubai with over 12+ years of experience, helping people with Business Setup in Dubai.

Frequently Asked Questions

Q1: Can DIFC free zone companies get mainland branch licenses?

No, DIFC follows its own financial rules; no mainland expansion allowed under Resolution 11.​

Q2: What if mainland sales hit AED 375K but the free zone stays under?

Register VAT only for the mainland part. Free zone sales stay 0% if banks are completely separate.​

Q3: Does the RAKEZ Dual License work in the Dubai mainland, too?

No, covers RAKEZ free zone + RAK mainland only. Dubai needs a separate DET permit.​

Q4: Can free zone staff get mainland work visas without a new office?

Yes, with an HQ-operated branch. Update contracts, but no MOHRE visas are needed for short projects.​

Q5: What happens if DET rejects the activity match during the NOC stage?

Fix the free zone license first, or pick a temporary permit. No appeal – must match exactly or AED 100K fine risk.

Conclusion

Free zone companies can now legally operate in the UAE mainland thanks to Dubai’s Executive Council Resolution No. 11 of 2025. This rule started in March 2025 and helps businesses grow while supporting Dubai’s goal to double its economy by 2033.​

Companies keep their free zone tax benefits, like 0% on exports. At the same time, they reach 10 million UAE customers and government contracts. The process takes 3-6 weeks: get NOC from your free zone (1-3 days), apply to DET, and pay AED 10,000 for a branch license.​

Start with an AED 5,000 temporary permit to test the market safely. Follow all the steps for free zone company to operate in mainland.

Consultants from PRO Services Dubai always welcome you to take expert guidance for a smoother process. Contact them for further help!