The Complete Guide to the Free Zone Mainland Operating Permit: Taking a Dubai Free Zone Company onto the Mainland
Introduced under Dubai Executive Council Resolution No. 11 of 2025, the Free Zone Mainland Operating Permit allows free zone companies holding a Dubai Unified Licence (DUL) to do business on the mainland without setting up a new entity.
How the framework works: the Dubai Unified Licence and the permit
Dubai Executive Council Resolution No. 11 of 2025, issued on 3 March 2025, created a legal framework for Dubai free zone companies to operate in mainland Dubai. Building on it, the Department of Economy and Tourism (DET) and the Dubai Business Registration and Licensing Corporation (DBLC) introduced the Free Zone Mainland Operating Permit, which lets eligible free zone companies carry out limited activities on the mainland under their existing free zone licence, without setting up a separate mainland entity (LLC).
Holding a Dubai Unified Licence (DUL) is a prerequisite for the permit. The DUL is a digital platform that consolidates company information across Dubai and serves as the entry point for free zone companies considering the mainland.
- Applications are made fully digitally through the Invest in Dubai (IID) platform.
- According to DET, more than 10,000 Dubai free zone companies could be eligible.
The Resolution sets out three ways for a free zone company to operate on the mainland: a licence for a branch in mainland Dubai; a licence for a branch that operates out of the free zone (AED 10,000 a year); and a temporary permit for specific activities for up to six months (AED 5,000). The operating permit described in this article corresponds to the temporary permit route.
What is covered — and what is not
At launch, the permit is limited to non-regulated sectors such as technology, consulting, design, professional services and trading. Companies in DIFC, the financial free zone, are excluded, as are regulated sectors such as finance and healthcare for now. DET has indicated a phased extension to regulated sectors in future.
| Item | Details |
|---|---|
| Eligible sectors | Non-regulated sectors such as technology, consulting, design, professional services and trading |
| Excluded | DIFC companies; regulated sectors such as finance and healthcare (expected to be extended in future) |
| Validity | Six months (renewable for the same fee) |
| Fee | AED 5,000 per six months |
Application requirements and process: the conditions often overlooked
Two points are often overlooked in practice: who may apply, and the physical office requirement. Only the company's manager may apply, and the company must hold a physical office in the free zone — a flexi-desk or virtual office does not meet the requirement.
The Resolution gave free zone companies already operating on the mainland without authorisation one year from 3 March 2025 — that is, until March 2026 — to regularise their position. That grace period has now passed, so any company continuing mainland activities without authorisation should take corrective action promptly.
- 1Confirm that the company holds a Dubai Unified Licence (DUL).
- 2Confirm that the company holds a physical office in the free zone (a flexi-desk does not qualify).
- 3Apply for the permit in the manager's name through the Invest in Dubai platform.
- 4After DET checks the activities against its list of eligible activities, the permit becomes active on approval and payment of the fee.
Tax and accounting considerations
Revenue earned from mainland activities under the permit is subject to 9% Corporate Tax, and the FTA requires accounting records that keep it separate from other revenue earned under the free zone licence. Where a free zone company benefits from the 0% rate as a Qualifying Free Zone Person (QFZP), how mainland revenue affects its qualifying status needs to be reviewed case by case.
Being able to deploy existing staff on mainland work helps avoid additional hiring costs. However, unless rules for separating revenue and allocating costs are in place in advance, Corporate Tax filing can become confusing, so we recommend involving the accounting team from the planning stage.
The Free Zone Mainland Operating Permit allows free zone companies holding a DUL to access the mainland market without setting up a new entity, but it must be used with a clear understanding of the practical requirements — eligible sectors, the physical office requirement and separate accounting for revenue taxed at 9%. The grace period for regularising unauthorised mainland activity ended in March 2026.
© 2026 Biz Easy FZCO. All rights reserved.