Step-by-Step Process to Convert a Free Zone to Mainland License Dubai Without Losing Your Bank Account

Moving from a free zone company to a mainland company is a big step for many business owners in the UAE. This move can open doors to more clients, government contracts, and steady growth. But there is one fear that stops many entrepreneurs from taking this step. That fear is losing the company bank account.

The good news is this. A free zone to mainland license Dubai conversion can be done safely if you follow the proper legal structure and banking steps. Many businesses switch every year without any account freeze or disruption.

This guide explains everything in simple language. Understand the specifics of converting your Dubai license from Free Zone to Mainland, including your banking choices, required paperwork, fees, and measures to protect your account during the transition. 

What is Free Zone vs Mainland Business Dubai

Before initiating the conversion, it is necessary to understand the operational differences between Free Zone and Mainland companies in Dubai.

A free zone business is registered inside a specific zone. It is easy to set up and offers 100% foreign ownership. However, free zone companies have limits. They cannot trade directly with the UAE market without a distributor or special permit.

A mainland business is registered with Dubai’s Department of Economy and Tourism, also called DET. A mainland license allows you to work anywhere in the UAE. You can serve local clients, bid for government projects, and open more branches.

This difference between free zone vs mainland business Dubai is the main reason companies decide to move.

Why Businesses Switch From Free Zone to Mainland License Dubai

Many companies start in a free zone because it is fast and low-cost. But as the business grows, free zone limits start to slow progress.

Businesses usually switch from a free zone to a mainland license in Dubai for these reasons:

• They want to sell directly to UAE customers.
• They want to work with government entities.
• They want better trust with banks and large clients.
• They want to expand operations inside Dubai and other emirates.

A mainland license supports long-term growth and stability. This is why mainland companies setting up Dubai’s free zone have become very common.

Can You Convert a Free Zone Company to Mainland Dubai Without Losing the Bank Account?

Yes, you can.

Banks in the UAE do not freeze accounts because of a license change alone. Banks freeze accounts when they see risk, missing information, or sudden, unexplained changes.

If your free zone to mainland company conversion Dubai is done correctly, your bank account can stay active.

Banks mainly care about these points:

• The company owners stay the same.
• The business activity remains clear and legal.
• The bank is informed early.
• All KYC details are correctly updated.

This is called bank account continuity UAE business, and it is possible with the right approach.

What are the Legal Ways to Convert Free Zone Company to Mainland Dubai Company

There is more than one way to move from the free zone to the mainland. Choosing the correct method is the key to protecting your bank account.

Opening a Mainland Branch (Safest Option)

This is the most bank-friendly method.

In this option, you keep your free zone company active. You then open a mainland branch under the same company name.

The benefits are substantial:

• The bank account stays under the same legal entity.
• No ownership changes are required.
• Banks see this as expansion, not replacement.
• Many banks prefer this method because it shows stability.

Getting a DET Permit for Free Zone Companies

Some business activities allow a DET permit for free zone companies. This permit allows a free zone company to operate on the mainland without fully converting.

Service-based companies find this option to be most effective. It enables mainland operations while still being able to keep the free zone license.

However, not all activities qualify, so a professional review is needed.

Complete Conversion From Free Zone to Mainland Company

This option entails closing or transferring the free zone company and establishing a new entity on the mainland.

This method possesses the highest risk from a banking perspective. If done poorly, the bank can request a new account.

This option should only be utilised when there is a legal obligation to do so, and always with banking advice.

Step-by-Step Process of Obtaining a Mainland License in Dubai from a Free Zone

The following is a simplified mainland license Dubai process.

Step 1: Assess Your Bank Account Situation

Before applying, review the activities on your bank account. Ensure all the transactions are for business purposes and are uncomplicated.

Notify the bank of your intention of UAE free zone to mainland transition. Prior notice creates reliability.

Step 2: Obtain the Free Zone NOC for Mainland License

A NOC from the free zone is required for a mainland license, and this is the case for most free zones. This document confirms that the free zone has no objection to your expansion.

The NOC usually takes a few working days.

Step 3: Choose Mainland Business Activity

Your mainland activity must match or align with your free zone activity. Sudden changes raise bank questions.

This step is critical for compliance and smooth approval.

Step 4: Apply With DET

Submit your application to the Department of Economy and Tourism. Trade name approval, activity approval, and initial approval are issued at this stage.

This is the official start of your conversion to a free zone company in mainland Dubai.

Step 5: Securing Office Space and Ejari

Companies operating in the mainland require a registered office address. This can either be a flexi desk or a physical office, depending on the company’s activities.

Ejari registration must be done.

Step 6: Notify Bank and Update KYC

Once you receive the mainland license, provide it to the bank. They will require a KYC update for the UAE bank account.

Submit the updated license, Ejari, and the approvals. This is to safeguard your account.

Documents Required for Company Conversion from Free Zone to Mainland Dubai

To avoid unnecessary delays, ensure you have all the paperwork in order.

Standard documentation includes: 

• Trade license for the free zone.
• NOC from the free zone.
• Copies of passports of all shareholders.
• Copy of the Emirate’s IDs.
• Board resolution for the conversion.
• Trade license for the mainland.
• Ejari certificate.

Depending on your business activity, banks may require further documents.

Free Zone to Mainland License Cost Dubai Explained

Mainland Trade License Fees

The mainland license issued by DET usually costs between AED 10,000 and AED 15,000. This includes trade name registration and initial approvals.

Office Rent and Ejari

A mainland license requires a physical address.

• Flexi-desk or shared office: AED 5,000 to AED 10,000 per year
• Private office: AED 15,000+ per year
• Ejari registration is mandatory and usually included in rent.

Free Zone NOC Charges

Some free zones charge for issuing a free zone NOC for a mainland license. This fee can range from AED 1,000 to AED 5,000, depending on the authority.

Government and Approval Fees

Certain activities need extra approvals from DET or other departments. These fees may add AED 2,000 to AED 5,000.

Professional Service Fees (Optional but Recommended)

Engaging a professional may be worthwhile as it eliminates potential delays and complications with your banking. Their service charge is typically between AED 3,000 and AED 7,000.

Estimated Costs

For most companies, the cost of the free zone to mainland license Dubai is between AED 15,000 and AED 30,000

The final amount is subject to your:

• Business activities
• Type of office
• Free zone authority

• Required approvals

Cost-Saving Tip

To keep the costs manageable and your banking aggravation to a minimum, many companies opt to close the free zone company and open a mainland branch. This approach is often more cost-effective, and banking is less complicated.

Timeline for Dubai Company Setup in a Free Zone

Planning Phase

• Confirm eligibility for the business activity and the mainland.
• Apply for a Free Zone NOC for mainland license.
• 5 business days.

First stage approval from DET

• Trade Name and Ownership Submission.
• Approval from DET for Free Zone Companies.
• 2-4 business days.

Office/Flexi-desk Arrangement

• Pick a location for the mainland office.
• Ejari Registration.
• 5 business days.

Issuance of the mainland license

• Complete the Dubai mainland license.
• Submission of all approvals and Ejari.
• 5 business days.

KYC Submission for Bank Account

• Keep the account active for a business in the UAE.
• 10 business days.

Total Timeframe

• Unproblematic cases: 15-25 days
• Problematic cases: 4-6 weeks

Tip

• During the transition period, ensure the Free Zone Company remains operational.
• This is important for maintaining active business banking, contracts, and payments.

How Banks See Free Zone to Mainland Transitions

• The banks consider the objective and the business model.
• They appreciate companies that develop gradually.
• A mainland company setup Dubai from free zone is a step towards proper business maturity, especially if done correctly.
• The same business owners and free zone licences are not closed too early – this gives banks more assurance.
• There are no changes to business activity.
• KYC updates are submitted promptly
• This methodical approach fosters trust with the banks
• It also preserves strong, sustainable, and long-lasting relationships with the banks.

Common Mistakes That Cause Bank Account Problems

Many account issues come from simple mistakes.

• Closing the free zone license before informing the bank.
• Changing shareholders during conversion.
• Operating mainland activity without approval.
• Ignoring KYC update for UAE bank account requests.

Avoiding these mistakes keeps your account safe.

Free Zones vs Mainland Businesses in Dubai: What Is Better for Development?   

Free zones offer 100% foreign ownership, quick business registration, and cater to international commerce, but restrict access to the UAE market. On the other hand, mainland businesses can trade throughout Dubai and the UAE, engage with local customers, and obtain government-related business. 

However, some of these opportunities are only available with a local sponsor. For quick operational expansions internationally, free zones are a better option. However, for comprehensive growth in the UAE, the mainland is better. Many businesses start with free zones and eventually have to transition to the mainland to grow.  

Who Benefits from the Conversion of a Free Zone Company to the Mainland in Dubai?  

This transformation is beneficial for businesses which;  

• Have a consistent clientele in the UAE.
• Anticipate scaling within the UAE. 
• Require enhanced corporate banking services. 
• Seek government contracting opportunities.  
• If the growth of your business is beyond the initial expectations, then this transformation is the most appropriate.

Is the Free Zone to Mainland License in Dubai Right for You?

Converting your free zone company to a mainland license in Dubai is a smart move if you want to grow locally and access the entire UAE market. It works well for businesses needing government contracts, local clients, or broader trading rights. Your activities might be mostly international, and you might not need access to the UAE as a whole, so remaining in a free zone could be adequate. 

However, you should evaluate your future objectives, business activities, and plans for growth before making any switches. This will help you ensure that your decisions align with the demands of growth and the potential for ongoing success.

Our Business setup experts in Dubai with over 12+ years of experience can handle the process for you. They are licensed Business setup consultants in Dubai, helping thousands of individuals in Business Setup in Dubai. 

FAQs

Q1: If I convert to the mainland, will I still be able to keep my bank account in the UAE?

Yes, most banks will keep your account active, even after you perform a KYC update, as long as the KYC owner remains the same.

Q2: Is it necessary to get a new trade license when going to the mainland?

Yes. Converting means you have to obtain a new mainland license with the Department of Economy and Tourism (DET) of the UAE, but you will usually be allowed to retain the same business name and activity.

Q3: How long will it take to move from a Free zone to the mainland?

Depending on the complexity of your situation, it may take 2 to 6 weeks, assuming all of the necessary documents have been completed and the required approvals have been obtained.

Q4: Is a Free Zone NOC necessary for conversion?

Yes, as part of moving your company to the mainland, you will have to get a No Objection Certificate (NOC) from your Free Zone Authority.

Q5: Upon switching to the mainland, will I need to alter the nature of my business activities?

Not usually. You can keep the same business activity, but it must be in compliance with mainland regulations, and you would need to obtain the necessary approvals from DHA or DET, if applicable.

Conclusion  

Converting a free zone to a mainland license in Dubai is not a big concern if done the right way, which is a sensible business development strategy for companies that wish to grow in the UAE. The focus should be on planning, clarity and compliance.

If you manage to provide the proper structure, receive the necessary approvals and keep the banks updated, you will be able to make the free zone to mainland license Dubai shift without losing your business account.

This shift will provide you with better access to customers, enhanced trust from the banks and sustainable prosperity in the ever-growing Dubai economy.

If the number of customers is your focus, then the mainland will likely be your next destination.

Contact Business setup experts in Dubai for more help!