Reviewed 12 September 2026. General guidance; confirm the requirements for your business with the relevant authority.
A Dubai free zone licence does not automatically authorise every activity everywhere in the emirate. However, eligible companies have routes to obtain mainland permissions while retaining their free zone entity. The appropriate route depends on the activity, where it will be performed and the approvals required.
Three routes under Resolution 11 of 2025
Dubai Executive Council Resolution 11 of 2025 provides for a mainland branch, a branch operating out of the free zone, or a permit for specified activities. Branch licences are renewable annually; a temporary activity permit can run for up to six months. The resolution excludes financial establishments licensed in DIFC, rather than making a blanket statement about every DIFC entity.
The resolution also requires separate financial records for activities outside the free zone. Activity in another emirate remains subject to that jurisdiction’s permissions. Treat this as a Dubai framework, not a universal licence to operate throughout the UAE.
The Free Zone Mainland Operating Permit
Dubai launched the operating permit in October 2025. The announcement identifies eligible free zone companies holding a Dubai Unified Licence and describes applications through Invest in Dubai. The initial phase covers specified non-regulated activities, including technology, consultancy, design, professional services and trading.
The published permit fee is AED 5,000 for six months, renewable for the same fee. Confirm current availability, activity eligibility and any additional charges before applying. This permit fee is not the total cost of running a company: the existing free zone licence, workspace and other obligations continue.
Decide what the business actually needs
Write down the proposed mainland activity in plain language. Will staff work at client premises? Will goods be stored or sold locally? Does the business need a permanent office, a retail location or a sector approval? A licence name alone may not answer those questions.
Compare the suitable permit or branch route with a separate mainland company. Consider contract requirements, operational control, renewal cost and the accounting work involved. Do not describe a permit as a conversion of the existing company when the free zone entity remains in place.
Prepare the approval checklist
- Confirm the free zone licence is current and covers the underlying activity.
- Check DET eligibility and the relevant activity list for the proposed route.
- Obtain the free zone authority’s approval and any sector approvals required.
- Organise incorporation, manager and ownership documents requested by the service.
- Explain the operating location, staffing and any premises arrangements.
- Confirm fees, validity, renewal requirements and the point at which operations may begin.
Keep copies of the approval and its conditions available to the people delivering the work. A sales team should not promise services that extend beyond the authorised scope.
Review the tax and accounting position separately
Mainland activity can affect a free zone company’s Corporate Tax analysis. Separate financial records help identify the relevant activity, but they do not by themselves establish the tax treatment. Review the income, costs and any permanent-establishment or Qualifying Free Zone Person implications with the appropriate adviser.
Common questions
Does the permit replace the free zone licence?
No. It adds specified operating permissions. The underlying licence must remain valid and the permit’s conditions must be followed.
Can the company bid for government work?
The operating-permit announcement describes access to government-contract opportunities. Each tender still has its own eligibility and registration conditions; an application or permit does not guarantee qualification or an award.
Can the same arrangement be used in Abu Dhabi or Sharjah?
Check separately. Dubai’s resolution expressly recognises the need for permissions from the competent jurisdiction when activities take place outside Dubai.
Official sources and further reading
- Dubai legislation: Executive Council Resolution 11 of 2025
- Dubai Government: Free Zone Mainland Operating Permit
- FTA: Free Zone Persons guide
Explore MNK’s related business service or request a consultation with your activity, jurisdiction and the support you need.