can a Free Zone company conduct business Dubayda 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 Free Zone 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 litsenziya, 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 litsenziya is issued under a particular Free Zone 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 Free Zone Person analysis.

Separate financial records are required for authorised mainland operations.

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

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

A Free Zone litsenziya does not automatically authorise unrestricted operations everywhere Dubayda. Depending on the activity, the company may need a mainland operating permit, a branch litsenziya from the Dubay Iqtisodiyot va turizm departamenti, a mainland distributor or importer, a dual-licensing arrangement, or an independently incorporated mainland company.

Dubay materially expanded the available options through Executive Council Resolution No. 11 of 2025. Under this framework, a company licensed by a Dubay Free Zone authority may operate outside its Free Zone and within the Emirate of Dubay after obtaining the required litsenziya or permit from the Dubay Iqtisodiyot va turizm departamenti.

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

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

A Dubay Free Zone company may conduct business in the Dubay 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 Free Zone establishments seeking to conduct activities outside their zones and within Dubay.

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

Under the Resolution, a Dubay Free Zone establishment may operate outside its Free Zone after obtaining the necessary litsenziya or permit from DET. Dubay 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 Free Zone company can automatically perform every activity in mainland Dubay. DET and the relevant Free Zone authority determine activity eligibility, licensing conditions and coordination requirements.

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

According to the official Dubay 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 Free Zone 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 Dubay Media Office

Does Every Dubay Free Zone Company Qualify?

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