Dubai Free Zone Companies Can Now Operate in Mainland Dubai: The Complete Update 2025
Dubai’s Executive Council Resolution No. 11 of 2025, issued on March 3, marks a major shift—free zone companies (excluding DIFC financial entities) can now operate in the mainland Dubai via the Dubai Department of Economy & Tourism (DET).
In a landmark move set to reshape the business landscape, Dubai now allows free zone companies to operate directly on the mainland under a new permit system introduced by the Department of Economic Development (DETD). This means businesses registered in free zones can now serve onshore clients, take on mainland projects, and expand their footprint, without having to set up a separate mainland entity. In this blog, we break down the latest updates, new permit options, costs, compliance requirements, and guide how to make the most of this opportunity.
What's New?
Free zone companies can apply to DET for three new pathways:
-
Mainland Branch License
- Physical office required
- Valid for 1 year
-
Linked Mainland License
- The headquarters remain in a free zone
- No onshore office required
- Same 1-year duration
-
Activity-Specific Permit
- Short-term, project-based permit (up to 6 months)
DET is expected to publish a specific list of approved mainland activities by September 20, 2025.
What do You Need to Do?
- Check activity eligibility once DET publishes the list.
- Apply via DET, with approvals from the free zone authority and sector regulators.
- Maintain separate financials for mainland and free zone operations—critical under corporate tax rules
- Use existing free zone staff for mainland activities—no re-sponsorship necessary
- Comply with onshore laws, including labor, immigration, and inspections
Key Benefits of Operating in Mainland Dubai
- Access Dubai clients directly—sell to government, corporates, and local customers.
- Streamline your setup—no need to form separate mainland entities.
- Save costs and administration—only one primary business structure.
- Enhance credibility—build more trust with a mainland presence.
Transition Timeline
Free zone companies already operating onshore have one year to regularize their status (with a possible one-year extension).
Bottom Line
This resolution breaks down geographical silos and gives free zone businesses newfound flexibility. With direct access to the mainland market, streamlined licensing, and cost efficiencies, Dubai takes a significant step toward full economic integration, all part of the Dubai Economic Agenda (D33), which aims to double the economy by 2033.
Why Choose CLA Emirates as a Business Setup Consultant?
At CLA Emirates, we specialize in bridging the gap between regulatory requirements and strategic business goals. Whether you're a free zone company looking to expand into the Dubai mainland or navigating new licensing pathways under the latest Executive Council resolution, our team offers tailored guidance, end-to-end support, and deep local expertise. From DET permit applications to compliance structuring and renewal management, we ensure a smooth, compliant, and cost-effective expansion, so you can focus on what matters most: growing your business.
Call for Consultation
Mr. Ragesh Mattummal | Partner & Co-Founder
M: +971 50 357 8031
E: Ragesh.Mattummal@claemirates.com
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