The Free Zone Mainland Operating Permit in UAE is a new route for eligible Dubai free zone companies that want to carry out approved activities in Dubai mainland without immediately creating a separate mainland company. The framework comes from Dubai Executive Council Resolution No. 11 of 2025 and is administered through the Dubai Department of Economy and Tourism (DET).
One important point is often missed: this is a Dubai framework, not a single permit that automatically applies to every free zone company across every emirate. The current permit allows eligible businesses to conduct specific approved activities in mainland Dubai for a limited period, subject to the applicable conditions and approvals.
The rules also provide other routes, including branch licences. So a business should first check its free zone, activity, existing licence, office arrangement and intended mainland work before choosing a permit or a branch structure.
What Is the Free Zone Mainland Operating Permit?
The Free Zone Mainland Operating Permit is a temporary DET permit that allows an eligible free zone establishment to conduct certain activities outside its free zone but within the Emirate of Dubai. Under Article 7 of Executive Council Resolution No. 11 of 2025, the temporary permit can be valid for up to six months.
The legal framework is set out in Executive Council Resolution No. 11 of 2025, which also provides for branch licences for businesses that need a longer-term mainland structure.
The permit does not convert a free zone company into a mainland company. Instead, it gives the free zone establishment permission to conduct the approved activity in mainland Dubai under the conditions attached to the permit.
Why Was This Permit Introduced?
Dubai introduced the framework to make it easier for free zone businesses to expand into mainland activity while keeping their existing free zone establishment. The Dubai Department of Economy and Tourism announced the Free Zone Mainland Operating Permit in October 2025 as part of a wider effort to simplify cross-jurisdiction business operations.
The official Dubai DET announcement states that the framework is intended to help eligible free zone companies access mainland opportunities, including domestic trading and government contracts, subject to the relevant rules.
For a business that wants to test or expand its mainland presence, the framework can therefore provide another route to consider instead of immediately setting up a separate mainland company.
Key Benefits of the Free Zone Mainland Operating Permit
- Mainland access for approved activities: An eligible company can conduct approved activities in mainland Dubai under the permit instead of relying only on its free zone operating area.
- Ability to test mainland opportunities: The temporary structure can be useful for businesses that want to explore mainland projects before committing to a longer-term branch or mainland setup.
- Existing free zone structure can remain: The permit operates alongside the existing free zone establishment. It does not require the company to abandon its free zone licence.
- Existing workforce can be used: Article 8 of the resolution allows an authorised establishment to engage its existing workforce registered on the free zone portal and continue benefiting from applicable free zone employment privileges.
- Potential access to local projects: The framework can open opportunities to serve mainland customers and pursue eligible commercial or government-related work, where the activity and approvals allow it.
- A defined temporary route: The permit has a maximum six-month validity, giving eligible businesses a time-bound way to conduct approved mainland activity.
Who Can Apply?
Eligibility depends on the company, its free zone licensing authority, its business activity and the requirements applied by DET. The official framework requires the free zone establishment to have a valid licence and obtain the approval of its licensing authority. Where the activity is regulated, approval from the relevant government entity may also be required.
The Dubai Trade guidance also states that the permit is available to free zone companies holding a Dubai Unified Licence (DUL), and that applications can be submitted through the Invest in Dubai portal. It also notes a physical free zone office requirement for the permit route described there; a flexi-desk, business centre or virtual office arrangement is not accepted for that application.
Before applying, businesses should verify their exact eligibility with DET and the relevant free zone authority because activity-specific requirements can change. The official resolution requires the activity to fall within the applicable list for the temporary permit route.
Which Activities Are Covered?
When the permit was launched, Dubai announced an initial focus on non-regulated activities such as technology, consultancy, design, professional services and trading. Regulated activities may require additional approvals or may follow a different licensing route.
Do not assume that a free zone licence automatically permits the same activity in mainland Dubai. The mainland activity must match the approved scope and satisfy any requirements imposed by DET and the relevant regulator.
For example, a business working in healthcare, finance, education, food, transport or another regulated field may need additional permissions. The safest approach is to confirm the activity and approval path before signing a mainland lease, accepting a project or starting mainland operations.
Free Zone Mainland Operating Permit Cost in Dubai
The prescribed fee for the temporary permit is AED 5,000 for issuance or renewal under Article 12 of Executive Council Resolution No. 11 of 2025. The temporary permit can be valid for up to six months.
This fee should not be treated as the complete cost of mainland expansion. A business may also have costs linked to government approvals, regulated activities, documentation, professional support, office requirements or other compliance obligations.
For budgeting, use the AED 5,000 permit fee as the published permit charge, then obtain a case-specific estimate for any additional costs that apply to the business.
How to Apply for the Permit
Step 1: Confirm your free zone eligibility
Check that the company has a valid free zone licence and meets the current eligibility requirements.
Step 2: Confirm the mainland activity
Identify exactly what the company wants to do in mainland Dubai and confirm that the activity is eligible for the permit route.
Step 3: Obtain free zone authority approval
The resolution requires approval from the relevant free zone licensing authority.
Step 4: Check additional approvals
If the activity is supervised by another government entity, obtain the required approval before the mainland activity begins.
Step 5: Prepare the company documents
The resolution specifically refers to documents such as the memorandum of association and free zone trade licence, along with any information requested by DET.
Step 6: Submit the application
Eligible applications can be submitted through the Invest in Dubai platform according to the applicable process.
Step 7: Pay the prescribed fee
The temporary permit fee is AED 5,000 under the resolution.
Step 8: Operate within the approved scope
Once approved, conduct only the activities and operations covered by the permit and comply with applicable mainland rules.
How Long Is the Permit Valid?
The temporary permit can be valid for a period of up to six months. The legislation separately provides for branch licences: a branch within the emirate or a branch operating out of the free zone can have a one-year validity and be renewable for the same period, subject to the relevant requirements.
This distinction matters. A company planning a short-term mainland project may consider the temporary permit, while a company planning ongoing mainland operations may need to evaluate a branch licence or another appropriate mainland structure.
Permit vs Mainland Company: What Is the Difference?
| Point | Temporary Permit | Mainland Company |
| Structure | Existing free zone company remains in place | Separate mainland entity/licence structure |
| Duration | Up to 6 months for the temporary permit | Generally ongoing, subject to licence renewal |
| Purpose | Specific approved mainland activities | Broader ongoing mainland operations based on licence |
| Fee | AED 5,000 under the resolution | Varies by activity, structure, premises and approvals |
| Best fit | Short-term or defined mainland activity | Long-term mainland presence and operations |
The choice is not simply about price. The business activity, duration, premises, staffing, regulatory approvals and long-term plans should drive the structure.
Can a Free Zone Company Use Its Existing Employees?
Yes, the Dubai resolution provides an important employment benefit. Article 8 states that an establishment licensed or authorised under the resolution may engage its existing workforce registered on the free zone portal and continue to benefit from the applicable free zone employment privileges.
This means a business may not need to create a completely separate workforce simply because it receives permission to conduct the approved activity in mainland Dubai. The employees and their work must still remain within the scope of the applicable rules.
Tax and Record-Keeping Considerations
Mainland activity does not remove the company’s wider UAE tax and accounting responsibilities. The Dubai framework requires authorised establishments to maintain separate financial records for activities conducted outside the free zone and within Dubai, distinct from records for free zone activities.
Dubai’s official launch announcement also explains that mainland-related revenues are subject to the applicable UAE corporate tax rules. Tax treatment depends on the company’s facts, tax status and applicable legislation, so businesses should not assume that all free zone income receives the same treatment.
For tax compliance, review the Federal Tax Authority guidance and obtain professional tax advice where the structure or activity is complex.
What Happens If the Business Wants Long-Term Mainland Operations?
A temporary permit is not necessarily the right long-term solution. If a business expects regular mainland operations, a mainland branch or another licensing structure may be more suitable.
Executive Council Resolution No. 11 of 2025 provides for two branch routes: a branch located in Dubai mainland and a branch operating out of the free zone. Both branch licences are stated to be valid for one year and renewable, subject to the conditions in the resolution.
Businesses considering a permanent mainland presence can also review BSE’s mainland business setup services and compare the licensing structure with their current free zone setup.
Common Mistakes to Avoid
- Assuming every UAE free zone company automatically qualifies for the Dubai permit.
- Treating the permit as a replacement for a mainland company in every situation.
- Starting mainland work before the required permit or approvals are issued.
- Using the permit for an activity that is outside the approved scope.
- Assuming regulated activities need no extra approvals.
- Budgeting only for the permit fee and ignoring other compliance or operational costs.
- Failing to keep separate financial records for mainland activities.
- Assuming the Dubai permit automatically authorises operations in other emirates.
Free Zone Mainland Operating Permit in UAE: Dubai Scope Matters
The phrase “Free Zone Mainland Operating Permit in UAE” can sound broader than the current legal framework. The permit discussed in this guide is specifically a Dubai mechanism for eligible free zone establishments conducting approved activities within the Emirate of Dubai.
The UAE Government’s free zone guidance explains that free zone companies are subject to rules governing mainland access and that direct mainland activity may require the appropriate mainland licence or approval. Other emirates can have their own licensing systems, so a Dubai permit should not be presented as a nationwide permit.
How BSE Can Help
BSE can help businesses review their intended activity, jurisdiction, licensing structure and expansion plans before they choose a mainland route. If you are already operating in a Dubai free zone, you can discuss your requirements through BSE’s business setup services in Dubai or review its free zone business setup services.
For document processing and government liaison work, businesses may also need PRO support. The right service depends on the approvals and structure involved.
FAQs
Q1: What is the Free Zone Mainland Operating Permit in UAE?
In the current framework, it is a Dubai DET temporary permit that allows eligible free zone establishments to conduct approved activities in mainland Dubai for up to six months, subject to the required approvals and conditions.
Q2: How much does the Dubai Free Zone Mainland Operating Permit cost?
The prescribed fee for issuing or renewing the temporary permit is AED 5,000 under Executive Council Resolution No. 11 of 2025. Other business-specific costs may apply.
Q3: Can a free zone company use its existing employees for mainland work?
Yes. Article 8 allows an establishment authorised under the resolution to engage its existing workforce registered on the free zone portal, while retaining applicable free zone employment privileges.
Q4: Does the permit allow a company to operate anywhere in the UAE?
No. The permit is a Dubai framework for activities conducted within the Emirate of Dubai. Operations in another emirate require the relevant licence or permit for that jurisdiction.
Q5: Is the temporary permit suitable for permanent mainland operations?
Not necessarily. The temporary permit lasts up to six months. Businesses planning ongoing mainland operations should assess whether a mainland branch, a branch operating from the free zone, or another mainland structure is more appropriate.
Conclusion:
The Free Zone Mainland Operating Permit in UAE gives eligible Dubai free zone businesses a practical route to carry out approved activities in mainland Dubai without immediately replacing their existing free zone structure. The framework is based on Executive Council Resolution No. 11 of 2025 and is administered through Dubai’s licensing system. For the temporary permit route, the authorisation can last for up to six months, with a prescribed fee of AED 5,000 for issuance or renewal.
That does not mean every free zone company can simply start trading across Dubai. Eligibility, activity scope, free zone approval, additional government approvals and the requirements set by DET all matter. A business should also understand that the permit applies to Dubai. It does not create a nationwide UAE mainland permit, and it does not automatically authorise activity in other emirates.
The structure can be useful when a company wants to test mainland demand, serve approved local projects, expand its customer base or take on a defined mainland assignment while keeping its free zone establishment. The ability to use the existing free zone workforce can also reduce the need to create a completely separate staffing arrangement. At the same time, businesses must follow mainland rules for the approved activity and maintain separate financial records for mainland operations.
For companies planning a longer-term mainland presence, a temporary permit may not be enough. A branch licence or a separate mainland setup could make more sense depending on the business model, activity, premises, staffing and growth plans. Comparing these routes before committing money or signing contracts can help avoid an unsuitable structure.
For ongoing government paperwork and document support, you can also review PRO Services in Dubai. If you want to discuss your specific case, you can contact BSE on WhatsApp and share your current free zone, activity and mainland plans.
