A free zone setup may suit your business in its early years. The office options are flexible and full foreign ownership is standard. The limits become clearer when most of your customers, contracts or staff are based in the UAE mainland.
Many owners assume they must close the free zone entity and start again. Current UAE and Dubai rules offer more choices. Depending on your company, you may transfer its registration while keeping its legal personality, open a mainland branch or obtain a permit for selected mainland activities.
The best route depends on whether you want permanent mainland status or permission to serve mainland customers while retaining your free zone company.
Key Takeaways
A registration transfer may be possible if both authorities and registration systems approve it.
A DET branch or temporary permit can provide mainland access without closing the free zone company.
A branch operating from the free zone costs AED 10,000 per year under the 2025 resolution. A temporary permit costs AED 5,000 and may run for up to six months.
Review tax, contracts, visas and banking before cancelling the existing licence.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
Can You Move a Free Zone Company to Mainland Dubai?
Yes, but the word “move” can describe different processes.
The UAE Commercial Companies Law permits a company to transfer its registration from a free zone to a mainland authority while retaining its legal personality. Both commercial registries must allow the transfer, the outgoing and incoming authorities must approve it and there must be no registry restriction that blocks the move. The company must then comply with mainland rules.
Dubai Executive Council Resolution No. 11 of 2025 also allows DET to issue:
A licence for a branch with premises in mainland Dubai
A licence for a branch operating from the free zone
A temporary permit for specific mainland activities
These routes help a free zone business enter the Dubai market without necessarily changing its place of incorporation.
Before deciding, review Nexture’s comparison of Dubai mainland vs free zone business setup.
Three Ways to Shift or Expand into Dubai Mainland
Route | Main result | Best suited for |
Registration transfer | The company moves to DET while retaining legal personality, where permitted | Permanent mainland operations |
Branch or permit | The free zone company stays active and receives DET authority to operate onshore | Mainland expansion with free zone continuity |
New mainland company | A separate DET entity is formed and operations are migrated | Cases where transfer is unavailable or separation is preferred |
- Transfer the Registration
This is the closest route to a full conversion. It may preserve the company’s legal identity, ownership history and corporate continuity.
It is not automatic. The law requires both registries to support the transfer. Procedures can differ between DMCC, JAFZA, Dubai South, IFZA, Meydan and other free zones. Obtain written confirmation from the free zone and DET before cancelling a licence, lease or visa.
- Open a Mainland Branch or Apply for a Permit
A branch can be less disruptive. The parent company remains registered in the free zone while its DET-licensed branch carries out approved mainland activities. The branch has no legal personality separate from the parent.
Branch licences issued under the resolution are valid for one year and renewable. A temporary permit can be valid for up to six months. The official fee is AED 10,000 per year for a branch operating from the free zone and AED 5,000 for a temporary permit. Other approval, office and service fees may apply.
This route may suit a consultancy, technology company or professional services firm that wants mainland clients while keeping its free zone base.
- Form a New Mainland Company
A new mainland LLC may be cleaner when a direct transfer is unavailable or you want separate partners, liabilities or business lines.
This creates a new legal person. Contracts, staff, receivables and bank facilities may need assignment, novation or fresh approval.
Read Nexture’s guide to a limited liability company in Dubai for the usual mainland structure and requirements.
Step-by-Step Process
- Review the Activity and Legal Form
Check the exact activity codes on the free zone licence. Confirm that DET offers matching activities and whether another regulator must approve them.
Regulated activities may require additional approvals. The official Dubai business portal advises applicants to settle the activity, legal form and regulator requirements before completing the licence application.
- Choose the Correct Route
Choose a transfer when permanent mainland status and legal continuity matter. Choose a branch when you want mainland operations but still need the free zone entity. Choose a new LLC when you need a separate ownership or risk structure.
Review customer location, hiring, office needs, contracts and tax treatment before choosing. Nexture’s step-by-step Dubai company setup guide provides a broader planning framework.
- Obtain Corporate and Free Zone Approvals
A registration transfer generally requires a special shareholder resolution or approval from the absolute majority of partners. It also needs consent from the outgoing free zone and the receiving mainland authority.
For a branch or permit, the free zone licence must remain valid and the free zone authority must approve the application. Regulated activities may need further government approval.
- Submit the DET Application
File the application through the DET channel or Invest in Dubai. Common documents include:
Valid free zone trade licence
Memorandum and articles of association
Shareholder or board resolution
Free zone NOC or transfer approval
Passport and Emirates ID copies
UBO details and proposed activities
Regulator approvals, where required
For a branch operating from the free zone, the resolution expressly lists the company memorandum, trade licence and the manager’s passport and Emirates ID among the documents DET may request.
- Arrange the Mainland Address
A full mainland setup or a branch with mainland premises will generally need a suitable commercial address and an Ejari-registered tenancy. The premises must match the activity and sector requirements. The UAE Government’s mainland setup guidance confirms that Dubai tenancy documents must be registered through Ejari.
- Complete the Legal Changes
You may need an amended memorandum, updated legal form, Arabic translation, notarisation and trade name approval.
The UAE Government’s foreign ownership guidance confirms that most mainland commercial companies can be fully foreign-owned. Strategic-impact activities and some regulated structures can have additional ownership or approval conditions.
- Update the Business Records
After approval, update banking, contracts, tax, customs, immigration, labour, insurance and official stationery.
Keep the free zone licence active until the receiving authority confirms the effective date and you know that essential visas, accounts and contracts will continue without interruption.
Documents Usually Required
Most applications involve:
Free zone licence and incorporation certificate
Memorandum, articles, share register and UBO details
Shareholder or board resolution
Free zone NOC or good-standing confirmation
Passport, visa and Emirates ID copies
Manager appointment, DET approval and trade name documents
Ejari, where required
Regulator approvals
Tax records and recent financial statements
Corporate shareholders may need attested constitutional documents and an authorised resolution. Some stages may be completed digitally, as explained in Nexture’s guide to setting up a Dubai company remotely.
Cost and Timeline
There is no single fixed price for a full free zone-to-mainland transfer. The total depends on the authority, activity, legal form, office, owners, external approvals, translations, visas and bank updates.
Official figures under Resolution No. 11 of 2025 include:
AED 10,000 per year for a branch operating from the free zone
AED 5,000 for a temporary activity permit valid for up to six months
A straightforward branch or standard mainland setup may take a few weeks after the file is complete. Regulated activities, corporate shareholders and contract transfers can take longer. Treat any timeline as provisional until both authorities review the case.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Corporate Tax and VAT
A free zone company does not automatically receive 0% corporate tax on all income. A Qualifying Free Zone Person receives 0% only on Qualifying Income and must satisfy the relevant conditions. FTA guidance also covers taxable income and domestic permanent establishments.
The Dubai resolution requires separate financial records for activities carried out outside the free zone. If you retain the free zone company and add mainland operations, separate the income and costs properly from the first invoice.
According to the Federal Tax Authority’s VAT registration guidance, registration is mandatory for a UAE-resident business when taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed that amount within 30 days. Voluntary registration starts at AED 187,500.
Common Mistakes
Cancelling the Free Zone Licence Too Early
Wait for written approval and a transition plan. Early cancellation can affect visas, bank access and receivables.
Treating a Branch as a Separate Company
The parent remains responsible for the branch’s obligations because the branch is not a separate legal person.
Ignoring Contracts and Bank KYC
Legal personality may continue after a registration transfer, but banks, landlords, clients and regulators may still require notice, consent or updated documents.
Mixing Free Zone and Mainland Accounts
The 2025 resolution requires separate financial records for mainland activities conducted by the free zone establishment.
Conclusion
The process to move a free zone company to mainland Dubai is more flexible than it was a few years ago. You may transfer the registration, open a DET branch, obtain a temporary permit or establish a new mainland company.
Map the activity, legal form, tax position, staff, contracts and banking arrangements before filing a cancellation request.
Frequently Asked Questions
Can I keep the same company name?
Possibly. DET must approve the name and legal-form suffix, and the name must remain available.
Do I need an Emirati shareholder?
Most mainland commercial companies can be fully foreign-owned. Certain strategic or regulated activities may have additional rules.
Can I operate on the mainland without moving the company?
Yes, where DET and the free zone approve a branch or activity permit under Resolution No. 11 of 2025. Availability depends on the activity.
Should I transfer or open a new mainland LLC?
Transfer when continuity matters and both authorities support it. Use a branch when you want mainland access while keeping the free zone entity. Open a new LLC when you need a separate ownership, liability or operating structure.
