Key takeaways
- A UAE free zone company has three ways onto the mainland: re-domiciling the same company under Article 15 bis of the Commercial Companies Law, operating through a Dubai Department of Economy and Tourism (DET) branch or permit, or setting up a new mainland company and closing the free zone one.
- Re-domiciling a free zone company to the mainland has been allowed in principle since 15 October 2025, but no DET procedure for free zone to mainland transfers was found as of 09 October 2026.
- A Dubai free zone company that wants to keep its licence and trade on the mainland can pay AED 10,000 a year for a branch operating from the free zone, or AED 5,000 for a temporary permit valid up to six months (Executive Council Resolution No. 11 of 2025, as of October 2026).
- Mainland profits of a Qualifying Free Zone Person are taxed at 9%, because the FTA treats a UAE permanent establishment outside the free zones as outside the 0% rate, and a company must report a trade licence change to the FTA within 20 business days.
- A new mainland company is the slowest route, because visas, the bank account and customer contracts all have to be moved or re-issued, but it is the only route that works when no authority has published a transfer procedure for your case.
Can you move a free zone company to the mainland without closing it?
Yes in principle, but the route depends on whether both authorities will process it. Federal Decree-Law No. 20 of 2025 added Article 15 bis to the Commercial Companies Law (Federal Decree-Law No. 32 of 2021), and it lets a company move its registration between competent authorities, including from a free zone to the mainland, without affecting its continuity or legal personality.
The article came into force on 15 October 2025, one day after publication in the Official Gazette on 14 October 2025. Law-firm commentary (Gibson Dunn, Chambers) lists the conditions as approval by both registries, any required shareholder approval, no legal obstacle on the company's record, and publication of the transfer decision. A May 2026 law-firm article reported that implementing regulations had not been issued for all scenarios.
The law opens the door, but a transfer only happens if the mainland licensing department has a procedure to receive your company. Ask the DET (or the economic department of the emirate you are joining) in writing whether it accepts an inbound transfer for your activity, and what it needs.
Which route fits: re-domicile, branch or new company?
The right route depends on whether you want to keep the free zone licence: re-domiciling and a new company end on a mainland licence, while a branch or permit adds mainland permission on top of the free zone one.
| Route | Legal effect | Cost (as of 09 October 2026) | Status |
|---|---|---|---|
| Re-domicile under Article 15 bis | Same company, new licensing authority | Not published | Allowed by law; procedure for free zone to mainland not confirmed |
| DET branch licence in Dubai (Art. 5) | Branch of the free zone company; no separate legal personality | Not stated in the resolution; follows applicable legislation | Available to non-financial free zone companies in Dubai |
| DET branch operating from the free zone (Art. 6) | Branch of the free zone company; no separate legal personality | AED 10,000 per year | Available to non-financial free zone companies in Dubai |
| DET temporary permit (Art. 7) | Permission for listed activities; up to six months | AED 5,000 per issue or renewal | Available; first phase covers non-regulated activities |
| New mainland company | New legal entity; free zone company closed or kept | Depends on activity, premises and visas; no single published figure | Standard mainland process |
Accurate as of 09 October 2026, from Executive Council Resolution No. 11 of 2025 and the Dubai Media Office.
How does a Dubai mainland branch or permit work for a free zone company?
A Dubai free zone company (other than a DIFC financial entity) can ask the DET for a branch licence or a temporary permit and trade on the Dubai mainland while keeping its free zone licence. Executive Council Resolution No. 11 of 2025, issued on 3 March 2025, sets out three DET authorisations: a branch in Dubai, a branch operating from the free zone, and a permit for specific activities.
Branch licences are valid for one year and renewable, and a branch has no separate legal personality, so the free zone company stays liable. The applicant needs a valid parent licence, prior approval from its licensing authority, and approval from any government entity the activity requires; it may use its existing free zone workforce (Articles 5 and 8).
The permit is the lighter option. The Dubai Media Office announced the Free Zone Mainland Operating Permit on 8 October 2025: AED 5,000 for six months, renewable at the same fee, for free zone companies holding a Dubai Unified Licence, applied for online through Invest in Dubai. The first phase covers non-regulated activities such as technology, consultancy, design, professional services and trading, with regulated sectors planned for later.
AED 5,000: DET fee for a six-month Free Zone Mainland Operating Permit, renewable at the same fee. Source: Executive Council Resolution No. 11 of 2025, Article 12, and Dubai Media Office announcement of 8 October 2025, checked 09 October 2026.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company.
How do you set up a new mainland company and close the free zone one?
You form a new mainland company first and close the free zone company last, so that visas, contracts and the bank account always have a home. The official mainland steps on u.ae are:
- Identify the business activity, which decides the legal form and licence type.
- Choose the legal form (LLC, sole establishment or another form that fits the activity).
- Reserve the trade name with the economic department of the emirate.
- Obtain initial approval; foreign investors need approval from the General Directorate of Residency and Foreigners' Affairs first, and ownership limits depend on the activity.
- Prepare the memorandum of association, or a local service agent agreement where the activity requires one.
- Secure premises that meet the emirate's rules (Dubai requires an Ejari tenancy registration).
- Obtain any sector approvals, then collect the licence.
After the new licence is issued, move across the staff, the customer and supplier contracts and the banking, then cancel the free zone company's licence and deregister it with the FTA. Visas are tied to the sponsoring establishment, so expect staff to need new visas under the new company; confirm the process before you cancel anything.
What happens to your tax registration and records when you move?
Your corporate tax registration stays with the company if the legal entity continues, but you must report the new licence details to the FTA. The FTA's Tax Records Amendment service requires registrants to report changes to the trade name, principal address, primary business activities, trade licence amendments and authorised signatory within 20 business days; the page states that a late-notification penalty applies but does not give the amount.
A new mainland company needs its own corporate tax registration through EmaraTax, and the closed free zone company must be deregistered. The free zone company's 0% treatment does not cover mainland activity: the FTA's release on its Free Zone Persons guide says a Qualifying Free Zone Person with a permanent establishment in the UAE outside the free zones has the profits attributable to that establishment taxed at 9%. Whether your free zone income still qualifies for 0% depends on the Qualifying Free Zone Person conditions in the guide; take advice on your facts.
What most guides don't tell you
- A "conversion" quote is often a new company. Unless the authority re-domiciles the same legal entity, you are closing one company and opening another. Ask in writing which one a quote covers, because contracts, visas and bank accounts follow different paths in each case.
- The branch route is not a move, so you pay for two licences. Resolution No. 11 states that a branch has no separate legal personality, so the free zone parent keeps its licence and its renewal, and the AED 10,000 or AED 5,000 fee sits on top of it.
- There is a compliance window for companies already trading on the mainland. Article 13 of the resolution says existing onshore operators must comply within one year of the effective date, extendable once by the same period. The resolution takes effect on Official Gazette publication, and the English text on the Dubai legislation portal does not give that date, so ask the DET where your company stands.
- Separate books are a requirement. Both the resolution and the Dubai Media Office announcement require mainland records to be kept apart from free zone records, so set up a separate ledger before the first mainland invoice.
Which deadlines apply to your company?
A move or a mainland permit starts several clocks at once, including the FTA's 20 business day notice and licence or permit renewals. The free UAE compliance calendar is a calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
Can I change my free zone later without closing the company?
Sometimes. Article 15 bis of the Commercial Companies Law, in force since 15 October 2025, lets a company move its registration between authorities while keeping its legal personality, but both authorities must approve, and law-firm commentary reports that implementing rules had not been issued for every scenario.
Can a free zone company open a branch on the mainland?
In Dubai, yes: Executive Council Resolution No. 11 of 2025 lets non-financial free zone companies open a DET-licensed branch, with prior approval from their licensing authority. Other emirates set their own rules, so ask the relevant economic department.
What is a dual license in Dubai?
Dual licence is the market term for a free zone company that also holds Dubai mainland permission from the DET, now delivered as a branch licence or a temporary permit under Executive Council Resolution No. 11 of 2025. The permit requires a Dubai Unified Licence and costs AED 5,000 for six months as of October 2026.
Do I need approval from other authorities for my activity, like KHDA or DHA?
Yes, where your activity is regulated: Resolution No. 11 requires approval from the relevant government entities where required, and the permit's first phase covers only non-regulated activities. Education and health activities in Dubai are regulated by sector bodies, so confirm that approval before you apply.
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
- Dubai Legislation Portal: Executive Council Resolution No. (11) of 2025 Regulating the Conduct of Free Zone Establishments' Activities
- Dubai Media Office: Dubai launches Free Zone Mainland Operating Permit, 8 October 2025
- Dubai Department of Economy and Tourism: new growth for investors (press release, 8 October 2025)
- u.ae: Steps to start a business on the mainland
- u.ae: Running a business in a free zone
- Federal Tax Authority: Tax Records Amendment service
- Federal Tax Authority: Corporate Tax Guide on Free Zone Persons (news release)
- Federal Decree-Law No. 20 of 2025 amending Federal Decree-Law No. 32 of 2021 on Commercial Companies, as summarised by Gibson Dunn and Chambers (secondary sources)
- UpperSetup: Redomiciliation within the UAE, 23 May 2026 (secondary source, for the status of implementing rules)
Last checked: 09 October 2026
This is general information, not tax or legal advice for your specific situation.