Dubai Opened the Mainland to Free Zone Companies: How It Works

For years a Dubai free zone company could not sell directly into the local UAE market without a separate mainland entity. Executive Council Resolution No. (11) of 2025 quietly ended that wall. Now, with the right onshore licence or permit, free zone firms can trade on the mainland.

Here’s what the resolution actually says, the three routes it opens, the deadlines attached, and how it changes the free-zone-vs-mainland decision for anyone setting up in Dubai this year.

What Changed — From Walled-Off Free Zones to Mainland Access

The old model was a hard boundary. A free zone gave you 100% ownership, a tax-efficient regime and a business-friendly setup, but your company was largely fenced into the free zone and international markets; to sell onshore in Dubai you generally needed a separate mainland company or a local distributor. That separation is what Resolution No. (11) of 2025 dismantles.

Under the resolution, Dubai free zone entities can now operate in mainland Dubai through onshore licences or permits issued by the Department of Economy and Tourism. One important exclusion: DIFC-registered entities are outside this regime. For most free zone founders, though, the local market that used to require a second company is now reachable from the one they already have.

The Three Routes and Their Fees

The resolution does not just say “yes” — it defines how. There are three routes to mainland activity. The first is an in-Emirate branch: a mainland branch of the free zone company, licensed onshore. The second is a branch operating out of the free zone, carrying an annual fee of AED 10,000. The third is a temporary permit for time-limited mainland activity, priced at AED 5,000 and valid for up to six months.

The right route depends on how much mainland business you actually do. A temporary permit suits a one-off project or a market test; a branch out of the free zone suits ongoing but limited onshore activity; a full in-Emirate branch suits a company making the mainland a core market. The fees are modest — the significance is access, not cost.

DIFC Excluded, One-Year Regularisation, Onshore Oversight

New freedom comes with new obligations, and there are three to watch. First, DIFC entities are excluded, so financial firms in that centre do not benefit from this route. Second, and important for anyone already touching the mainland: companies conducting mainland activity must regularise their status within one year of the resolution’s 3 March 2025 effective date, with a possible one-time extension. Third, operating onshore means accepting mainland-grade oversight and compliance for that activity — this is real market access, not a loophole, and it carries the responsibilities that come with onshore trading.  The move is part of Dubai’s D33 agenda to double the size of its economy by 2033, so expect the framework to be enforced as a genuine integration of free zone and mainland, not a paperwork formality.

What It Means for Your Setup Decision in 2026

The practical effect is that the free-zone-vs-mainland decision is no longer binary. Previously, choosing a free zone meant accepting you could not easily sell onshore; choosing mainland meant giving up some free zone advantages. Resolution 11 lets a free zone company keep its base and reach the local market through a branch or permit — often removing the need for a second company purely for mainland sales.

For a founder setting up this year, that widens the free zone’s appeal. You can start in a free zone for ownership and setup benefits, then add mainland access via the appropriate route as demand appears — rather than committing to a dual structure upfront. If you already run a free zone company doing any onshore activity, the immediate action is to check whether you fall inside the one-year regularisation window and pick your route before it closes.

FAQ

What does Resolution No. 11 of 2025 actually allow?

It lets Dubai free zone entities operate in mainland Dubai through onshore licences or permits issued by the Department of Economy and Tourism, ending the old separation between free zone and mainland activity. DIFC-registered entities are excluded.

What are the three routes to the mainland?

An in-Emirate branch; a branch operating out of the free zone (AED 10,000/year); and a temporary permit (AED 5,000, valid up to six months). The choice depends on how much onshore business you do.

Is there a deadline to comply?

Yes. Companies already conducting mainland activity must regularise within one year of the 3 March 2025 effective date, with a possible one-time extension.

Are DIFC companies included?

No. DIFC-registered entities are excluded from this regime, so the mainland-access routes do not apply to them.

Does this change my corporate tax position?

Mainland activity brings onshore licensing and compliance, and UAE corporate tax rules still apply to your income. The resolution is about market access; it does not switch off tax or substance obligations.

Conclusion

Resolution No. (11) of 2025 is a genuine shift: Dubai free zone companies can now reach the mainland market through an in-Emirate branch, a branch out of the free zone (AED 10,000/year) or a temporary permit (AED 5,000, six months), without standing up a separate mainland entity for sales. The catches — DIFC exclusion, a one-year regularisation window from 3 March 2025, and real onshore oversight — matter, but the headline is more freedom for free zone founders, in step with Dubai’s D33 growth agenda. If you operate or plan to operate in Dubai, this reshapes the setup decision in your favour.

Setting up in Dubai, or already in a free zone and eyeing the local market? Send us your activity and where you want to sell on Telegram or WhatsApp, and we will map the right Resolution 11 route — branch or permit — and handle the licensing and any regularisation deadline for you.