Key takeaways
- A dual licence in Dubai lets a company that already holds a free zone licence also operate on the Dubai mainland under a second authorisation from the Department of Economy and Tourism (DET), without closing the free zone company.
- Under Executive Council Resolution No. (11) of 2025, DET can issue a branch licence inside Dubai, a branch licence operated from the free zone at AED 10,000 a year, or a temporary permit at AED 5,000 valid for up to six months (fees as of October 2026, Article 12).
- The Free Zone Mainland Operating Permit, launched on 8 October 2025, is open to free zone companies holding a Dubai Unified Licence and covers non-regulated activities first; regulated activities also need their regulator's approval.
- A dual licence changes a free zone company's corporate tax position: the FTA free zone guide says a Qualifying Free Zone Person loses 0% status for the tax period and the next four if its non-qualifying revenue passes the lower of AED 5,000,000 or 5% of total revenue.
- The Dubai framework covers Dubai only; a free zone company that wants to operate in another emirate needs a licence from that emirate's authorities.
What is a dual licence in Dubai?
A dual licence is the arrangement that lets a free zone company keep its free zone licence and add the right to trade on the mainland. The Dubai government portal says dual licensing lets companies in specific free zones extend their presence to the mainland without extra office space or a local shareholder, and that it is currently offered with five free zones; it doesn't name them, so ask your free zone whether it participates (dubai.ae, checked 09 October 2026).
The legal framework is Executive Council Resolution No. (11) of 2025, issued on 3 March 2025 and in force from its publication in the Official Gazette; we couldn't verify the Gazette date, so don't rely on a specific start date.
Under Articles 5 and 6 of the Resolution, a branch has no separate legal personality from its parent, so a mainland contract signed through a branch is your free zone company's contract.
Which dual licence options does Dubai offer, and who qualifies?
Dubai offers three authorisations under Article 4 of the Resolution, all issued by DET and all needing your free zone's prior approval, as the table shows.
| Option | What it allows | Validity | Dubai government fee |
|---|---|---|---|
| Branch licence inside Dubai (Article 5) | A branch located in Dubai, outside the free zone | One year, renewable | Not stated in the Resolution |
| Branch licence operated from the free zone (Article 6) | A branch that serves the mainland from the free zone headquarters | One year, renewable | AED 10,000 a year to issue or renew |
| Temporary permit (Article 7) | Specific activities on DET's permitted list | Up to six months | AED 5,000 to issue or renew |
Fees as of October 2026, from Article 12 of the Resolution.
In October 2025 DET's licensing arm, the Dubai Business Registration and Licensing Corporation, launched the permit route as the Free Zone Mainland Operating Permit: AED 5,000, renewable every six months, applied for online through the Invest in Dubai platform (Dubai Media Office, 8 October 2025).
Eligibility turns on four things: a free zone licence (financial institutions licensed in the Dubai International Financial Centre are excluded); a Dubai Unified Licence for the operating permit; an activity on the list DET publishes under Article 9; and regulator approval for regulated activities, which is why the permit's first phase covered non-regulated work such as technology, consultancy, design, professional services and trading.
How much does a dual licence cost in Dubai?
The Resolution states AED 10,000 a year for a branch licence operated from the free zone and AED 5,000 per permit term of up to six months, so two permit terms cost the same AED 10,000 over twelve months. It states no fee for a branch located inside Dubai and we found no official figure, so treat any quote for it as unverified until DET or your free zone confirms it in writing.
Accurate as of 09 October 2026. Government fees aren't your full cost: free zone approval fees, attestation, separate bookkeeping and adviser fees come on top and vary by free zone, so ask for a written quote.
How do you apply for a dual licence in Dubai?
You apply to DET after your free zone approves, and your activity has to be on DET's permitted list.
- Check that your Dubai Unified Licence is active; the operating permit is open to free zone companies that hold one.
- Confirm your exact activity is on DET's Article 9 list and whether it needs a branch licence or a permit.
- Get approval from your free zone authority (the Resolution's Licensing Authority) and from any regulator of your activity.
- Apply to DET; for the permit, the Dubai Media Office says applications go through the Invest in Dubai platform.
- Pay the fee and open separate financial records for the mainland activity from the first day, because Article 3 requires them.
- Diarise the renewal: one year for a branch licence, up to six months for a permit.
How does a dual licence affect corporate tax?
A dual licence can cost a free zone company its 0% corporate tax rate on qualifying income, so the tax test matters as much as the licence. The Dubai Media Office says free zone companies doing mainland activity pay 9% corporate tax on the related revenue and must keep separate financial records that meet FTA requirements.
The FTA's Corporate Tax Guide for Free Zone Persons (May 2024) and Cabinet Decision No. 100 of 2023 set the test:
| Rule | What it says | Where |
|---|---|---|
| De minimis limit | Non-qualifying revenue must not exceed the lower of AED 5,000,000 or 5% of total revenue | FTA guide, Sections 3.2.8 and 4.4.1 |
| Failing the test | Qualifying Free Zone Person status is lost for that tax period and the next four | FTA guide, Section 3.4 |
| Permanent establishment revenue | Revenue attributable to a Domestic Permanent Establishment is excluded from both sides of the test | FTA guide, Section 4.4 |
Say a Dubai free zone design studio has AED 4m of total revenue, of which AED 300,000 is non-qualifying (a hypothetical example). The limit is the lower of AED 5,000,000 and 5% of AED 4m, which is AED 200,000, so the studio fails and loses its status for five tax periods. Whether a branch creates a Domestic Permanent Establishment depends on your facts, so take tax advice before you apply.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company: a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Does a Dubai dual licence work in other emirates?
No: Article 3 of the Resolution says activities outside Dubai need licences from the competent authorities in that jurisdiction, so a Dubai authorisation doesn't cover Abu Dhabi, Sharjah or any other emirate.
Abu Dhabi runs its own dual licence for companies in its economic free zones, set up as a free zone branch, with a basic fee of AED 1,200 that includes six activities and AED 100 for each extra one (ADRA dual licence page, as of 09 October 2026). We found no official source for an equivalent route in the other emirates, so confirm with the local economic department.
AED 5,000: government fee to issue or renew a Dubai temporary permit for a free zone company's mainland activity, valid for up to six months. Source: Executive Council Resolution No. (11) of 2025, Article 12, checked 09 October 2026.
What most guides don't tell you
"Dual licence" covers more than one instrument, so ask which one you're being sold. A branch licence runs for one year and a permit for up to six months, and on government fees alone the two cost the same over twelve months; the real difference is which activities each covers on DET's list and what your mainland client or tender will accept.
Billing mainland customers directly and trading through a branch are treated differently in the test. Non-qualifying revenue earned by the free zone company counts against the lower of AED 5,000,000 or 5%; revenue of a Domestic Permanent Establishment is excluded from the test but taxed at 9%.
If you already trade on the mainland under a free zone licence, Article 13 gave existing operators one year from the effective date to comply, extendable once by the DET Director General. We couldn't verify the Gazette date, so ask DET or your free zone where you stand; Article 10 applies Dubai's administrative penalties to authorised establishments.
Frequently asked questions
Can a free zone company open a branch on the mainland?
In Dubai, yes: Executive Council Resolution No. (11) of 2025 lets DET license a branch of a free zone company, with the free zone's prior approval. The branch has no separate legal personality, so the parent company carries its contracts.
How do I move my company from a free zone to the mainland?
That's a different route: a dual licence keeps your free zone company and adds mainland rights, while moving means giving up the free zone licence and re-registering under a mainland authority. Compare both against your activity and tax position first.
Do I need approval from other authorities like KHDA or DHA?
Yes, if your activity is regulated: the Resolution requires approval from any government entity that regulates the activity, and the Dubai mainland operating permit launched with non-regulated activities only. Education and healthcare activities should expect their regulator's sign-off before DET issues anything.
What is the Dubai Unified Licence and do I need one?
The Dubai Unified Licence (DUL) is a unique commercial identification that DET announced on 11 December 2023 for all businesses in Dubai, mainland or free zone. The Dubai Media Office says free zone companies need one to apply for the Free Zone Mainland Operating Permit.
Which deadlines apply to your company?
A dual licence adds renewals, separate bookkeeping and corporate tax filings to your year, and a missed date costs more than the permit did. The free UAE compliance calendar lists your company's UAE tax and compliance deadlines, personalised from a few questions.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Executive Council Resolution No. (11) of 2025, Dubai Legislation Portal
- Hamdan bin Mohammed issues Resolution to regulate free zone establishments, Dubai Government Protocol, 17 March 2025
- Dubai launches Free Zone Mainland Operating Permit, Dubai Media Office, 8 October 2025
- Dubai Department of Economy and Tourism launches Dubai Unified Licence, Dubai Media Office, 11 December 2023
- Starting a Business, Dubai government portal (dubai.ae)
- Corporate Tax Guide, Free Zone Persons, FTA, May 2024
- Cabinet Decision No. 100 of 2023 on Qualifying Income for the Qualifying Free Zone Person, Ministry of Finance
- Dual Licence, ADRA (Abu Dhabi)
Last checked: 09 October 2026
General information, not tax or legal advice for your specific situation.