A Dubai free zone can be a practical place to start a company. You get a dedicated business environment, flexible office options and 100% foreign ownership. The problem often appears later, when more of your customers, projects or contracts are based on the Dubai mainland.
You may not want to close your free zone company and start again.
A dual licence Dubai arrangement can provide another route. Under Dubai's current framework, eligible free zone companies can obtain permission from the Dubai Department of Economy and Tourism (DET) to carry out approved activities on the mainland while retaining their existing free zone entity.
The rules became much clearer after Dubai issued Executive Council Resolution No. 11 of 2025. Dubai then introduced the Free Zone Mainland Operating Permit in October 2025, giving eligible businesses another practical route into the local market.
Here is how the system works in 2026.
What Is a Dual Licence in Dubai?
A dual licence generally refers to an arrangement where a company keeps its existing free zone licence while obtaining additional DET permission to operate in mainland Dubai.
It does not automatically turn your free zone company into a mainland LLC. Instead, the mainland authority gives the existing business permission to conduct specified activities outside its free zone through an approved licence or permit.
Dubai's official business portal describes dual licensing as a way for companies in qualifying free zones to extend their presence to the mainland without necessarily leasing another office or bringing in a local shareholder.
That can be useful if your business started in a free zone but now wants to:
Serve customers directly in mainland Dubai
Carry out projects at mainland locations
Enter local supply chains
Compete for certain government contracts
Keep its current free zone office and company structure
Use existing free zone employees for approved mainland operations
If you are still deciding between jurisdictions, Nexture's guide to Dubai mainland vs free zone company setup explains the wider differences.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
What Changed Under Dubai Resolution No. 11 of 2025?
Executive Council Resolution No. 11 of 2025 created a formal framework for free zone establishments that want to operate elsewhere within Dubai.
Under the Resolution, DET can authorise a free zone company through three main routes:
A branch established within mainland Dubai
A branch that remains based in the free zone but operates within Dubai
A temporary permit allowing specified activities in mainland Dubai
The two branch licences are valid for one year and can be renewed. A temporary activity permit can run for up to six months.
This gives growing free zone businesses more options than immediately creating a separate mainland company.
Three Ways a Free Zone Company Can Operate on the Mainland
- Free Zone Mainland Operating Permit
For many smaller businesses, this is now one of the most relevant options. In October 2025, the Dubai Business Registration and Licensing Corporation, part of DET, launched the Free Zone Mainland Operating Permit in cooperation with the Dubai Free Zones Council.
The permit is:
Valid for six months
Renewable for another six months
Priced at AED 5,000
Available through the Invest in Dubai platform
Intended for eligible companies holding a Dubai Unified Licence
Its initial phase covers non-regulated activities including technology, consultancy, design, professional services and trading. DET has said regulated sectors may be added as the framework develops.
This can suit a consulting company, software business or trading firm that wants to test mainland demand before committing to a larger onshore structure.
- Branch Operating Out of the Free Zone
A company can also obtain a DET licence for a branch that operates on the mainland while remaining headquartered in its existing free zone.
The statutory DET fee under Resolution No. 11 of 2025 is AED 10,000 per year for issuing or renewing this licence.
You normally need:
A valid free zone trade licence
Approval from your free zone authority
Your company's Memorandum of Association
Passport and Emirates ID of the company manager
Any additional approvals required for the activity
The branch does not become a separate legal entity. It remains part of the original free zone company.
Some free zones already support this type of arrangement. Dubai Airport Freezone, for example, states that its dual licence route allows eligible DAFZ companies to obtain a DET licence without taking separate mainland office space.
- A Physical Mainland Branch
Your free zone company may instead open a branch physically located in mainland Dubai. This route makes more sense when mainland activity is becoming a permanent part of your business and you need an actual local operating location.
The company must obtain its free zone authority's approval, keep its free zone licence valid and secure any activity-specific approvals required by government regulators. The mainland branch still forms part of the parent company rather than becoming an independent company.
If your long-term plan involves shifting most operations outside the free zone, compare this approach with moving a free zone company to Dubai mainland before deciding.
Dual Licence Dubai Cost
The official fees depend on the route you use.
Route | Government Fee | Validity |
Free Zone Mainland Operating Permit | AED 5,000 | 6 months |
Branch operating out of the free zone | AED 10,000 | 1 year |
Physical mainland branch | Depends on licensing and activity requirements | Generally 1 year |
The AED 5,000 and AED 10,000 figures are the published DET fees for the relevant permit and free-zone-based branch route. Additional charges may apply for approvals, amendments, documents or services required by your free zone or another regulator.
Do not budget from the licence fee alone. A regulated activity could require approval from another authority, which can change both the cost and the process.
Do You Need Another Mainland Office?
Not always. This is one of the main reasons companies consider a dual licence.
A branch operating from the free zone can continue using its free zone base. The newer mainland operating permit is also designed to let eligible businesses enter the local market without setting up a completely separate company.
DAFZ specifically confirms that eligible companies using its DET dual-licensing option can operate from DAFZ without separate mainland office space.
However, physical premises can still be required for certain activities or structures. A salon, restaurant, clinic, warehouse or other location-dependent activity cannot assume that the same rules used for a software consultancy will apply.
Can You Keep Your Existing Employees?
Resolution No. 11 allows an authorised free zone establishment to use its existing workforce registered through the free zone.
DET also confirmed this approach when launching the Free Zone Mainland Operating Permit, stating that businesses using the permit can deploy their existing employees for mainland operations without necessarily recruiting another team.
That can reduce the administrative work involved in mainland expansion. You still need to follow the labour, immigration and activity-specific rules that apply to your particular setup.
What About Corporate Tax?
This part needs careful planning.
A dual licence does not mean all mainland income automatically keeps the free zone 0% corporate tax treatment.
A Qualifying Free Zone Person may receive a 0% rate on Qualifying Income if it meets the relevant conditions. However, the Federal Tax Authority explains that income attributable to a Domestic Permanent Establishment outside the free zone is generally subject to the standard 9% corporate tax rate. DET also requires businesses carrying out mainland activities under the new permit framework to maintain separate financial records.
In practical terms, you should be able to distinguish your free zone operations from your mainland operations clearly.
The current free zone tax rules also include conditions around qualifying activities, substance, transfer pricing, audited financial statements and non-qualifying revenue. The Ministry of Finance updated the qualifying and excluded activity framework through Ministerial Decision No. 229 of 2025.
Read Nexture's UAE corporate tax guide if you need a broader overview before structuring the expansion.
Documents Commonly Required
Exact requirements vary, but you should normally prepare:
Current free zone trade licence
Memorandum of Association
Company registration documents
Passport copy of the manager
Emirates ID of the manager, where applicable
Approval or NOC from the free zone authority
Details of the mainland activity
Additional government approvals for regulated activities
For a temporary activity permit, DET can request the company's Memorandum of Association and existing free zone licence along with the required authority approvals.
Your business activity should be checked before you prepare the application. Do not assume that a similar-sounding free zone activity automatically maps to the correct mainland activity.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
How to Apply for a Dual Licence in Dubai
The process usually looks like this:
- Check Your Existing Activity
Review the activity stated on your free zone licence and confirm what you actually want to do on the mainland.
- Confirm Eligibility
Check whether your activity can use a mainland permit or needs a branch licence.
The current operating permit initially focuses on activities such as technology, consulting, professional services, design and trading.
- Get Free Zone Approval
DET requires approval from the relevant free zone licensing authority for the routes created under Resolution No. 11.
- Obtain External Approvals
Some businesses need additional clearance from sector regulators before DET can issue the mainland permission.
- Apply Through the Appropriate DET Channel
Eligible companies applying for the Free Zone Mainland Operating Permit can use the Invest in Dubai platform. Dubai has continued expanding this platform to bring company licensing and government approvals into one digital system.
- Pay the Required Fees
The published fee is AED 5,000 for the six-month operating permit and AED 10,000 annually for a branch operating out of the free zone.
- Separate Your Mainland Records
Once you start operating, keep separate financial records for mainland activities. This is a specific requirement under Resolution No. 11.
When Does a Dual Licence Make Sense?
A dual licence can suit you if the free zone still works well for your company but your mainland business is growing.
For example, imagine a technology consultancy in a Dubai free zone that mainly serves overseas clients. It then signs several projects with companies in Downtown Dubai and Business Bay.
Closing the free zone company may make little sense. A mainland operating permit or branch can give it the required local operating authority while keeping its existing company structure.
A full Dubai business setup or separate mainland company may still be more suitable if most of your revenue, employees, physical premises and long-term contracts will be mainland-based.
Points to Check Before Applying
Do not apply based only on the phrase "dual licence."
Check:
Whether your exact activity qualifies
Which DET route applies
Whether your free zone will issue the required approval
Whether another regulator must approve your activity
Whether you need physical mainland premises
How mainland activity affects corporate tax
Whether your accounting system can separate mainland transactions
Whether the permission covers the type of contracts you intend to sign
Also remember that Dubai's framework covers operations within the Emirate of Dubai. If you want to establish operations in Abu Dhabi, Sharjah or another emirate, you must follow the licensing rules of that jurisdiction.
Conclusion
The dual licence Dubai framework gives free zone businesses a clearer route into the mainland market without automatically forcing them to close their existing company and start again.
In 2026, your main options include the AED 5,000 six-month Free Zone Mainland Operating Permit, a one-year branch operating from the free zone or a physical mainland branch.
The right option comes down to your activity, where the work takes place, how frequently you operate on the mainland and whether your sector needs additional approvals.
Before applying, check the activity with both DET and your free zone authority. Then review the tax treatment. Getting those two points right at the start can save you from having to amend the structure later.
Frequently Asked Questions
Can a free zone company operate in mainland Dubai?
Yes. Eligible Dubai free zone companies can obtain a DET licence or permit to carry out approved mainland activities under Executive Council Resolution No. 11 of 2025.
How much does a dual licence cost in Dubai?
The Free Zone Mainland Operating Permit costs AED 5,000 for six months. A licence for a branch operating out of the free zone carries a statutory DET fee of AED 10,000 per year. Additional costs may apply.
Do I need to close my free zone company?
No. The mainland permit and branch routes allow the existing free zone entity to remain in place.
Can I use my existing employees on the mainland?
Yes, approved companies can use existing free zone employees for permitted mainland operations, subject to applicable employment and regulatory requirements.
Does a dual licence preserve 0% corporate tax?
Do not assume so. FTA guidance states that income attributable to a Domestic Permanent Establishment outside the free zone is generally subject to the standard 9% corporate tax rate. Free zone qualifying income has its own conditions.
Can every free zone company obtain a dual licence?
Eligibility is not automatic. Your activity, free zone approval, Dubai Unified Licence status where applicable and any sector-specific regulatory requirements can affect whether you qualify.
