Dubai’s business ecosystem just got a powerful upgrade.

The Dubai Government’s Executive Council Resolution No. (11) of 2025 now allows Free Zone companies to operate directly in the Dubai Mainland without creating a separate mainland entity.

This landmark change brings unmatched ease, flexibility, and cost-efficiency for entrepreneurs and business owners across the UAE and beyond.

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What Has Changed?

As per the new resolution:

• Free Zone companies can now conduct business in Dubai Mainland

• No need to incorporate a new onshore entity

• Permits are regulated by the Dubai Department of Economy and Tourism (DET)

• AED 5,000 fixed permit fee

• One-year grace period for companies to adapt

📌 Source: Dubai Mainland Company Setup – e-Startup.ae

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 Key Highlights at a Glance

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Types of Mainland Permits Available

1. Mainland Branch License

• Physical branch in the mainland

• Requires office setup & staff

• Cost: Approx. AED 10,000/year

• Ideal for: Long-term expansion

2. Linked Mainland License

• Operate from Free Zone HQ

• No physical mainland office required

• Cost: Approx. AED 10,000/year

• Ideal for: Freelancers, consultants, tech/startups

3. Temporary Activity Permit

• Short-term permit (max 6 months)

• Cost: AED 5,000

• Ideal for: Events, seasonal projects, pilot campaigns

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Eligibility & Application Requirements

Who Can Apply?

• Companies with valid Free Zone licenses

• Commercial & professional businesses targeting mainland

• Companies not involved in restricted/prohibited activities

Basic Requirements:

• Valid Free Zone trade license

• DET-approved business activity

• Compliance with UAE tax and labor laws

• Separate accounting for Free Zone and Mainland revenues

Documents Required:

• Copy of Free Zone License

• Business Activity Summary

• NOC from Free Zone Authority (if required)

• Shareholders’ Passport Copies

• Emirates ID/Visa copies (if applicable)

• Proof of business address

• Undertaking letter to follow DET rules

• Application Form + Payment Receipt

🔗 Need help with documentation? Apply with Experts

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Corporate Tax Implications

💡 For tax registration & filing support, explore UAE Corporate Tax Filing

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Benefits of This New Regulation

Wider Market Access

No local agent or mainland company needed to sell in mainland Dubai.

Lower Costs

Avoid the need for dual entity setup, saving thousands yearly.

Business Flexibility

Operate seamlessly across jurisdictions. Great for:

• E-commerce brands

• Tech startups

• Consultancy firms

Free Zone Benefits Remain

Continue enjoying:

• 100% Foreign ownership

• Customs duty exemption

• World-class infrastructure

Clear Legal Path

Defined procedure by DET with a 1-year grace period to comply

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Step-by-Step: How to Expand Your Free Zone Business to Mainland

Step 1: Check Eligibility

Ensure your business activity is DET-approved for mainland operations.

Step 2: Prepare Documents

Gather all the documents listed above.

Step 3: Apply for Permit

Apply through Dubai DET with all paperwork and fee.

Step 4: Wait for Approval

Permit will be issued after due diligence and activity approval.

Step 5: Stay Compliant

Maintain separate records, fulfill tax obligations, and renew your permit annually.

Want it all done for you? Talk to a Dubai Business Consultant Now

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Final Words

This new resolution is a game-changer for Free Zone businesses ready to expand, innovate, and serve a wider UAE market — without the hassle of forming another mainland company.

Dubai continues to prove why it’s the #1 destination for entrepreneurs and startups.

👉 Ready to take advantage of this opportunity?

✅ Start Your Dubai Free Zone or Mainland Setup Today