Quick answer
Yes. Since Executive Council Resolution No. 11 of 2025 came into force on 3 March 2025, a free zone company licensed in a Dubai free zone can work in mainland Dubai without setting up a separate mainland company. It needs approval from the Dubai Department of Economy and Tourism (DET) and from its own free zone authority, through one of three routes: a DET branch licence, a dual licence Dubai branch that stays based in the free zone, or a DET temporary permit for specific short-term work. Your activity must be on the DET eligible list, and fees and conditions should always be confirmed with the authorities before you apply.
This guide explains how each route works, what you need, how the process runs, and how to decide between free zone vs mainland structures for your business.
Why the rules on a free zone company in mainland Dubai changed
For many years, the line between the two systems was simple. A free zone licence let you trade inside the free zone and, usually, internationally. To sell directly to customers in the Dubai mainland, you normally needed a separate mainland licence, a local distributor, or a service agreement through a mainland partner.
That created real problems for growing companies. A consultancy licensed in a free zone could win a client in Business Bay but could not invoice that client directly. A trading company had to route sales through a third party and lose margin. Many businesses ended up paying for two licences just to serve one city.
Dubai addressed this with the Executive Council Resolution. In simple terms, the resolution says a company licensed by a free zone authority can operate outside the free zone, within Dubai, as long as it gets the required licence or permit from DET. The resolution excludes financial institutions licensed in the Dubai International Financial Centre (DIFC). It also covers Dubai only. If your free zone company wants to work in another emirate, it has to get separate approvals from that emirate’s authorities.
For founders comparing free zone vs mainland, this is a significant change. The question is no longer “free zone or mainland?” but “which structure gives me mainland access at the lowest cost and risk?”
Can a free zone company operate in mainland Dubai legally now?
Yes, but only through an approved route. The rules are not a blanket permission. To operate a free zone company in mainland Dubai legally, you generally need all of the following:
- A valid licence from a Dubai free zone authority.
- Approval from your free zone authority for the mainland activity.
- A DET licence or permit for that activity.
- Any extra approvals from other regulators if your activity is regulated (for example, health, education or food).
Trading in the mainland on your free zone licence alone, without the DET licence or permit, is not compliant. That matters for companies that were already doing it informally, and we cover that in the regularisation section below.
The three routes: branch licence, dual licence and temporary permit
The resolution gives free zone companies three ways to work in mainland Dubai. Here is how they compare.
A DET branch licence is a branch of your free zone company licensed in the Dubai mainland. You are based in mainland premises, the licence is valid for one year and renewable, and it suits companies that want a permanent mainland office, shop or showroom.
A dual licence Dubai (a branch operating out of the free zone) lets you serve mainland customers while you stay based in your free zone. It is valid for one year and renewable, and it suits service companies and traders that do not need a mainland office.
A DET temporary permit covers specific mainland activities for up to six months while you stay based in your free zone. It suits project work, pilots and testing the market.
Fees and conditions differ by route and by free zone, so ask for an itemised written quote before you budget or apply.
Route 1: DET branch licence
This is the most “permanent” option. Your free zone entity stays the parent company, and the mainland operation works as a branch, not as a separate legal entity. You will normally need mainland premises, which makes this route closer to a traditional mainland setup. It suits businesses with walk-in customers, retail or showroom needs, or activities that require physical inspection.
Route 2: Dual licence Dubai
A dual licence Dubai arrangement lets you keep your free zone office and still serve mainland customers. Because you are not renting a separate mainland office, it is usually the cheapest permanent route. It is a good fit for consultancies, agencies, IT and marketing firms, and trading businesses that deliver remotely or visit client sites.
Route 3: DET temporary permit
The DET temporary permit is designed for specific, time-limited work, up to six months. Think of a one-off contract, a pilot project or a trial of the mainland market before committing to a full licence. It is not a long-term solution. After the permit period, you either move to a full branch licence or stop mainland activity.
What activities are allowed?
Not every activity is open to every route. DET, together with the free zone authorities, was required to publish a list of economic activities that can be carried out in the mainland, and the list specifies which activities need a branch licence and which can use a permit.
In practice, the list is not always easy to find as a public document, so the safest approach is:
- Check your exact licensed activity against the DET eligible list through DET or your free zone authority.
- Confirm whether your activity needs a branch licence or can use a permit.
- Check whether any other regulator must approve the activity.
If your activity is not on the list, you cannot use these routes, and you may need a full mainland company instead. Our Dubai mainland company formation guide explains that option.
Documents and requirements
Requirements differ by free zone and by route, but the list typically includes:
- A valid free zone trade licence in good standing.
- The memorandum of association (MOA).
- Passport and Emirates ID of the company manager.
- Approval or no-objection confirmation from your free zone authority.
- Documents for any additional regulator approval, if your activity needs one.
- Premises documents, if you choose an in-Emirate branch.
The resolution also requires that your parent company’s licence stays valid, and that your mainland activities can be audited and inspected by DET and the free zone authority. You are expected to keep separate financial records for the activities carried out outside the free zone.
Ask for the checklist for your specific free zone, activity and shareholder structure before you start. Missing one document is the most common reason for delays.
Step-by-step process to work in mainland Dubai from a free zone
- Check your activity. Confirm that your licensed activity is on the DET eligible list and which route it needs.
- Pick the route. Choose a branch licence, a dual licence or a temporary permit based on premises, duration and budget.
- Get free zone approval. Request your free zone authority’s approval or no-objection for the mainland activity.
- Apply to DET. Submit the application and supporting documents, and pay the prescribed fees.
- Complete other approvals. If a sector regulator is involved, finish that approval before you start trading.
- Start operating and keep records. Keep separate accounts for mainland activity and plan for inspections and annual renewal.
Timelines vary by free zone and activity, so ask for a stage-by-stage timeline in writing rather than relying on a general estimate.
Free zone vs mainland: which structure should you choose?
The new routes do not mean every business should stay in a free zone. Here is how your options compare.
Stay in the free zone with no mainland work. You have no direct mainland access, or you reach customers through a distributor. This fits export, international or free zone-only customers.
DET temporary permit. You get limited mainland access for up to six months while you stay in your free zone. This suits short projects, pilots and testing demand.
Dual licence Dubai. You get ongoing mainland access for approved activities while you stay in your free zone. This suits service firms and traders with few mainland premises needs.
DET branch licence. You get ongoing mainland access through a branch with mainland premises. This suits retail, showrooms and walk-in customers.
Full mainland company. You get full mainland access without a free zone parent, with mainland premises. This suits large mainland operations, tenders and customers who require a mainland licence.
Convert free zone to mainland. You get full mainland access after cancelling the free zone company, with mainland premises. This suits businesses that have outgrown the free zone entirely.
A few questions help you decide:
- Where are most of your customers? If most are in the mainland, a permanent route or a full mainland company makes more sense than repeated temporary permits.
- Do you need mainland premises? If not, a dual licence is usually cheaper than a branch with an office.
- Do your customers require a mainland licence? Some corporate and government customers set their own supplier rules. Check them before you assume a free zone licence with a DET permit is enough.
- Is the work short-term? For a single project, a temporary permit can avoid a long-term commitment.
If you are considering a full move, read our guide to converting a free zone company to mainland Dubai. You can also compare routes by activity with the Setup Navigator.
Impact on staff, tax and banking
The licence is only part of the picture. Before you apply, look at these three areas.
Staff and visas. Under the framework, employees registered in the free zone can continue to support authorised mainland operations while keeping their free zone employment arrangements. Confirm how this applies to your visa quota and your specific free zone.
Accounting and tax. Because you must keep separate records for mainland activity, your bookkeeping becomes more important. Speak to a tax adviser about your position before you start. Our corporate tax and accounting and bookkeeping teams can help with this.
Banking. Banks look at whether your licence, your declared activity and your expected payment flows match. If you start earning from mainland customers, tell your bank and make sure your documents reflect the new activity. Approval of any account remains the bank’s decision. See our bank account opening service for how we help prepare applications.
Common mistakes to avoid
- Assuming a free zone licence is enough. It is not. You need the DET licence or permit.
- Choosing a route before checking the activity list. Your activity may not qualify.
- Using a temporary permit as a permanent solution. It lasts up to six months.
- Ignoring other regulators. Regulated sectors need extra approvals.
- Forgetting separate accounts. The rules expect separate financial records for mainland work.
- Not updating the bank. New income sources can trigger questions.
- Using outdated guidance. Fees and procedures change, so check the latest information.
How Virtue Corporate Services can help
Virtue Corporate Services is an independent private consultancy, not a government authority. We help founders compare the free zone company mainland Dubai routes against a full mainland company or conversion, based on your activity, customers and budget. Our written proposals show authority fees, third-party costs and our professional fee separately, and we explain renewal costs upfront. Because our founder has a banking background, we also look at how your structure will read to a bank before you apply.
If you want to operate a free zone company in mainland Dubai, talk to our team and we will review your activity, shortlist the right route and explain the next steps.
Frequently asked questions
Can a free zone company in Dubai work in the mainland?
Yes. Under Executive Council Resolution No. 11 of 2025, a Dubai free zone company can work in mainland Dubai if it gets a DET licence or permit and approval from its free zone authority. The activity must be on the DET eligible list.
What is a dual licence in Dubai?
A dual licence Dubai is a DET licence that lets a free zone company serve mainland customers while remaining based in its free zone. It is typically valid for one year and renewable.
How long does a DET temporary permit last?
A DET temporary permit allows specific mainland activities for up to six months. After that, you either move to a full branch licence or stop mainland activity.
How much does it cost to operate a free zone company in the mainland?
The cost depends on the route, your free zone and your activity. It usually covers DET fees, free zone fees and any third-party approvals. Ask for an itemised quote that shows each item separately before you apply.
Does the resolution apply to other emirates?
No. It covers Dubai only. A free zone company that wants to work in another emirate needs separate licences or permits from that emirate’s authorities.
Is a DIFC company covered?
Financial institutions licensed in the DIFC are excluded from the framework.
Is free zone vs mainland still a real choice?
Yes. The new routes reduce the gap, but a full mainland company can still be the better option for large mainland operations, customers who require a mainland licence, or businesses that need mainland premises. Compare your activity, customers and costs before you decide.
Can I move my free zone company fully to the mainland instead?
Yes, through conversion or by setting up a mainland company. See our guide to converting a free zone company to mainland.
Final thoughts
The free zone company mainland Dubai framework gives founders a practical way to reach local customers without a second company. The right route depends on your activity, how long you will work in the mainland, and whether you need premises. Check the DET activity list first, plan your tax and banking position early, and confirm every fee in writing.
For a clear comparison of your options, explore our free zone company setup and Dubai mainland company formation guides, or use the Setup Navigator.
Disclaimer: This article is general information, not legal or tax advice. Virtue Corporate Services LLC FZ is a private, independent consultancy and is not affiliated with any government authority. Requirements, fees and procedures are set by DET, free zone authorities and other regulators and may change, so confirm current details before you apply.
