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How Free Zone Companies Serve Mainland Clients

Free zone companies serving mainland clients in the UAE

A Dubai free zone company can serve mainland clients through four routes: the Free Zone Mainland Operating Permit, the Dual licence, a mainland branch, or a separate mainland company. Dubai Executive Council Resolution No. 11 of 2025 created the first three. DET, the Dubai Department of Economy and Tourism, issues all of them. The resolution excludes financial establishments licensed in the Dubai International Financial Centre (DIFC).

What are the options for a free zone company that wants mainland clients?

1. Free Zone Mainland Operating Permit

The permit lets a free zone company carry out specific activities in mainland Dubai without opening a branch. It lasts up to six months, and the activities must appear on DET’s approved list. The Dubai Media Office says companies holding a Dubai Unified Licence can apply online through the Invest in Dubai platform, and that the first phase covers non-regulated activities such as technology, consultancy, design, professional services and trading. The permit renews every six months.

Best for: project-based or occasional mainland work.

2. Dual licence

The Dual licence gives a free zone company a mainland branch that runs from its free zone registered office. The company does not lease extra mainland office space and does not need a local partner. The Dubai government says the Dual licence works with five free zones. The licence lasts one year and renews for the same period. The application includes the company’s memorandum of association, its trade licence, and the manager’s passport and Emirates ID.

Best for: ongoing mainland trade without mainland premises. 

3. Mainland branch

A mainland branch is a physical branch inside Dubai but outside the free zone. The free zone authority must approve it, the parent company must hold a valid free zone licence, and the branch must sit in Dubai. The branch has no separate legal personality, so the parent company stays legally responsible. The licence lasts one year and renews for the same period. 

Best for: companies that want a visible mainland office.

4. Separate mainland company

A mainland company holds its own DET licence and stands as its own legal entity. The Dubai government defines the mainland as all areas of Dubai outside the free zones, and most activities allow 100% foreign ownership. A mainland LLC has no territorial restriction on where it trades in the UAE or the GCC. 

Best for: founders whose main market sits on the mainland.

What rules apply to every route?

  • Separate records. The company keeps financial records for mainland activity apart from its free zone records. 
  • Local law. Federal and Dubai laws apply, including Dubai’s administrative penalties. 
  • Dubai only. The resolution covers Dubai. Work in another emirate needs licences from that emirate’s authority. 
  • Staff. Companies can use their existing workforce, which keeps its free zone employment privileges. 
  • Tax. The Dubai Media Office states that income from mainland activity falls under 9% corporate tax. 
  • Existing mainland work. Companies that already traded on the mainland had to comply within one year of the resolution taking effect, with one extension of the same length available. 

How do you choose the right route?

  1. List the mainland activities. The permit covers only activities on DET’s list, so match yours first.
  2. Decide how long the work lasts. A short project fits the permit. Ongoing work fits the Dual licence, a branch or a mainland company.
  3. Decide whether you need mainland premises. A branch needs a Dubai location. The Dual licence needs no extra mainland office.
  4. Confirm that your free zone offers the Dual licence. It works with five free zones only. 
  5. Consider a mainland company if the mainland becomes your core market. It gives you a separate entity with no territorial limit across the UAE. 

RVG sets up companies in free zones  and on the mainland .

What mistakes do free zone companies make with mainland clients?

  • Trading on the mainland without a licence or permit. Resolution No. 11 of 2025 requires one of the three DET routes, and Dubai’s administrative penalties apply. 
  • Assuming the permit works for any activity. Only activities on DET’s list qualify, and the first phase covers non-regulated activities. 
  • Treating a branch as a separate company. The branch has no separate legal personality, so the parent company carries the responsibility. 
  • Expecting one permit to cover the UAE. The resolution covers Dubai only. 
  • Ignoring tax. Mainland income falls under corporate tax, so keep the separate records the resolution requires. 

Frequently asked questions

Can a free zone company do business in mainland Dubai?

Yes. Executive Council Resolution No. 11 of 2025 lets a Dubai free zone company operate outside its zone with a licence or permit from DET. DIFC financial establishments fall outside the resolution.

What is the Dual licence?

The Dual licence lets a free zone company run a mainland branch from its free zone registered office. It needs no extra mainland office lease and no local partner, and it works with five free zones.

How long does the Free Zone Mainland Operating Permit last?

Up to six months. It renews every six months.

Does the permit cover the whole UAE?

No. It covers Dubai. Work in another emirate needs that emirate's licence.

Is a mainland branch a separate company?

No. A branch has no separate legal personality, so it depends on the parent company.

Can I use my free zone staff for mainland work?

Yes. The resolution lets companies use their existing workforce and keep its free zone employment privileges.

When should I open a mainland company instead?

Open one when the mainland is your main market. A mainland company holds its own DET licence and trades anywhere in the UAE or the GCC.

Planning mainland access with RVG

If you want a second opinion on which route fits your free zone company, the RVG team can walk you through it.

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