can a Zone franche company conduct business à Dubaï mainland

Confirm the legal entity, issuing authority and exact activities.

Identify customers, locations, contracts, goods, employees and premises.

Identify every external approval required.

Confirm whether the activity and Zone franche qualify for the operating-permit route.

Evaluate a permit, branch, distributor and separate mainland LLC.

Determine whether the operation creates non-qualifying income or a Domestic Permanent Establishment.

Confirm invoicing, importer responsibilities and product treatment.

Secure any no-objection certificate, resolution or supporting document required.

Submit the permit or branch application with the necessary supporting records.

Obtain an office, shop or warehouse suitable for the activity.

Confirm how existing staff can perform mainland duties.

Create ledgers, cost centres and records for mainland activity.

Update the company's operating profile where necessary.

Do not exceed the permit, branch or external approval.

Review the structure before each licence, permit and tax-reporting deadline.

The official operating permit was launched at AED 5,000 for six months, renewable for the same period and fee. This amount should be reconfirmed and should not be treated as the entire operational cost.

The licence is issued under a particular Zone franche framework. Mainland operations may require DET approval.

Permits, branches and direct structures may now be available.

It applies only to eligible activities and approved operations.

Mainland operations can create taxable income at 9% and affect Qualifying Zone franche Person analysis.

Separate financial records are required for authorised mainland operations.

Not every Zone franche is a Designated Zone, and Designated Zone treatment is limited.

Yes, a Zone franche company can conduct eligible business in the Dubaï mainland—but it must use a legally permitted route.

A Zone franche licence does not automatically authorise unrestricted operations everywhere à Dubaï. Depending on the activity, the company may need a mainland operating permit, a branch licence from the Dubaï Département de l'Économie et du Tourisme, a mainland distributor or importer, a dual-licensing arrangement, or an independently incorporated mainland company.

Dubaï materially expanded the available options through Executive Council Resolution No. 11 of 2025. Under this framework, a company licensed by a Dubaï Zone franche authority may operate outside its Zone franche and within the Emirate of Dubaï after obtaining the required licence or permit from the Dubaï Département de l'Économie et du Tourisme.

Dubaï subsequently introduced the Zone franche Mainland Operating Permit for eligible non-regulated activities. This creates a more direct path for certain Zone franche companies to undertake approved mainland operations without immediately establishing a separate mainland company.

KPM Global Services LLC can review a Zone franche company's licence, business model, customers and tax position before recommending the appropriate Dubaï mainland operating route.

A Dubaï Zone franche company may conduct business in the Dubaï mainland through one or more of the following routes:

Online or cross-border transactions that do not require an additional physical mainland presence, subject to the applicable rules

The company should not assume that issuing an invoice to a mainland customer is the only test.

Executive Council Resolution No. 11 of 2025 established a clearer legal framework for Zone franche establishments seeking to conduct activities outside their zones and within Dubaï.

The Resolution applies to Zone franche establishments operating outside their designated zones, with an exception for financial institutions licensed in the Dubaï International Financial Centre, which remain subject to their specialised framework.

Under the Resolution, a Dubaï Zone franche establishment may operate outside its Zone franche after obtaining the necessary licence or permit from DET. Dubaï Legislation Portal

Branch licences issued under the framework are generally valid for one year and may be renewed, subject to the applicable conditions.

The Resolution does not mean every Zone franche company can automatically perform every activity in mainland Dubaï. DET and the relevant Zone franche authority determine activity eligibility, licensing conditions and coordination requirements.

Dubaï introduced the Zone franche Mainland Operating Permit as an implementation route supporting eligible Zone franche businesses that want to operate in mainland Dubaï.

According to the official Dubaï announcement, the initial phase covers certain non-regulated activities, including areas such as:

Eligibility depends on the approved activity and participating licensing framework. A company should not rely only on a broad activity category. Its exact licensed activity must be checked.

Designed to allow eligible Zone franche companies to conduct approved mainland operations

Capable of supporting use of the company's existing workforce for authorised mainland activities

The current fee and conditions should be reconfirmed before applying. Government of Dubaï Media Office

Does Every Dubaï Zone franche Company Qualify?

A company established in another emirate's Zone franche should not assume that Dubaï's local permit framework applies to it in the same manner.