Dubai now lets free zone companies work on the mainland through a branch licence, a dual licence or a temporary permit. Here is how each option works, what it costs and how tax changes.
A free zone licence normally lets a company operate inside its zone and internationally. It does not by itself allow direct trading with customers on the Dubai mainland. Since 2025 Dubai has had a formal route for this, usually called a dual licence, and it changes the cost and tax picture for any founder who wants both free zone benefits and mainland customers.
The Government of Dubai Media Office reports that Executive Council Resolution No. 11 of 2025 regulates how free zone establishments operate in Dubai. Under it, any company licensed by a free zone authority may operate outside the free zone and within Dubai, as long as it obtains the necessary licences or permits from the Dubai Department of Economy and Tourism, known as DET.
Reed Smith's summary of the resolution lists three routes. Applications need approval from DET and the relevant free zone authority, and a regulated business may need extra approval from its regulator.
Branch licences are valid for one year and renewable annually. Temporary permits are valid for up to six months.
In October 2025 DET and the Dubai Free Zones Council launched this permit for free zone companies that hold a Dubai Unified Licence. They apply online through the Invest in Dubai platform. The first phase covers non regulated activities including technology, consultancy, design, professional services and trading, with plans to extend to regulated sectors.
Reed Smith reports a fee of AED 10,000 a year for a branch licence operating out of the free zone and AED 5,000 for a temporary permit. It also reports that free zone companies already working on the mainland must regularise within one year of the resolution taking effect in 2025, with a possible extension. Check the current DET fee list before you budget, because fees and activity lists can change.
The Dubai Government Media Office states that free zone companies engaging in mainland activities will be subject to 9% corporate tax on the related revenues and must keep separate financial records in line with Federal Tax Authority requirements. Separately, the FTA guide says a qualifying free zone person pays 0% only on qualifying income, and that a free zone person that does not qualify pays the standard rates of 0% up to AED 375,000 and 9% above that. Mainland income can affect the tax treatment of the whole company, so take advice from a UAE tax adviser before you start trading. If you are tax resident elsewhere, you also need advice in that country.
Our view, based on the structure of the options: a temporary permit suits a project, a pilot or a first test of mainland demand, because it runs for six months and can be renewed for the same fee. A branch licence suits a business that expects steady mainland work, because it is valid for a year and renews annually. Whichever you pick, compare the permit fees over twelve months with the branch fee before you decide, and ask your free zone whether it will issue the no objection paperwork DET needs.
A dual licence keeps the free zone company and adds mainland permission. A separate mainland company gives a clean structure but means a second set of costs and records. DBC packages start from USD 5,313 (AED 19,500) in Meydan Free Zone, which DBC lists for a Dubai address and services, and from USD 5,455 (AED 20,020) in IFZA. See /pricing or /pricing/calculator for the full range, then ask us what the mainland step adds for your activity.
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