Are all types of businesses allowed to expand into mainland Dubai under this resolution?

No, the resolution does not apply to financial institutions licensed within the Dubai International Financial Centre (DIFC). These entities will continue to follow their existing regulatory framework. Additionally, companies already operating in mainland Dubai or based outside of Dubai are not covered under this resolution.

What licenses or permits do free zone companies need to obtain to expand into mainland Dubai?

Free zone companies must obtain licenses from the Dubai Department of Economy and Tourism (DET) before conducting any business activities outside their designated zones. These include a Mainland Branch Licence, Headquarters Branch Licence, or an Activity-Specific Permit, depending on the nature of their expansion.

How long are the licenses issued by DET valid for?

All licenses issued by DET for free zone companies to operate in mainland Dubai are valid for one year. Businesses must renew their licenses annually to continue their mainland operations.

What are the benefits of this new resolution for free zone businesses in Dubai?

The key benefits include easier expansion opportunities, the ability to reach a broader market, simplified licensing processes, increased attractiveness for foreign investment, and alignment with Dubai's D33 Economic Agenda to double the size of the economy by 2033.

Do free zone companies need to lease physical office space in mainland Dubai to expand?

Some business activities may require free zone companies to lease office space or commercial premises in mainland Dubai. In such cases, the lease agreements must be registered with Ejari, Dubai's rental contract system.

Are there any additional approvals required for certain industries?

Yes, some industries like healthcare, education, and financial services may require additional approvals from relevant regulatory bodies before free zone companies can expand their operations into mainland Dubai.

Do free zone companies need to register for VAT if they expand to mainland Dubai?

If the company meets the UAE's VAT threshold based on its combined operations (including the mainland expansion), it must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA).

How long do free zone companies have to comply with the new resolution's requirements?

Free zone companies have one year to comply with the new resolution's requirements after obtaining a license from DET to operate in mainland Dubai. DET may grant a one-year extension upon request if needed.

Dubai’s New Resolution: freezone Businesses Can Now Expand into Mainland

Q: What is the new resolution allowing free zone businesses in Dubai to do?

The new resolution, Executive Council Resolution No. (11) of 2025, allows free zone businesses in Dubai to expand their operations into mainland Dubai by establishing branches or obtaining activity permits. This removes previous restrictions and enables these companies to reach a broader market beyond their designated free zones.

Q: What are the key compliance requirements for free zone companies expanding to mainland Dubai?

Free zone companies must maintain separate financial records for their mainland operations, comply with all UAE laws, labour regulations, and tax policies, undergo regular inspections by DET and other authorities, and meet compliance deadlines within one year of obtaining a license (with a possible one-year extension).

Did you know that freezone businesses can now establish branches outside their designated zones? Yes, Dubai’s new 2025 resolution removes previous restrictions, allowing freezone companies to expand into the mainland. However, businesses must obtain the necessary licences from the Dubai Department of Economy and Tourism (DET) and comply with local laws. In this article, we’ll cover all the essential details you need to know.

Dubai’s New Resolution for freezone Business Expansion

Dubai has taken a major step in enhancing its business environment with Executive Council Resolution No. (11) of 2025, allowing freezone businesses to expand their operations into mainland Dubai. This decision, issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, aims to boost investment, strengthen the economy, and align with the emirate’s D33 Economic Agenda.

Applicability of the Resolution

This resolution allows freezone businesses to expand into mainland Dubai by establishing branches or obtaining activity permits.

However, the resolution does not apply to:

Financial institutions under DIFC – Businesses licensed within the Dubai International Financial Centre (DIFC) are exempt from this resolution and will continue to follow their existing regulatory framework.
Existing mainland businesses – Companies that are already operating in mainland Dubai are not affected, as they are already regulated under DET guidelines.
Businesses outside Dubai – Companies based in other emirates or outside the UAE are not covered under this resolution. They must follow standard procedures for setting up operations in Dubai mainland.

Licences and Permits for freezone Companies Expanding to Mainland

freezone companies must obtain licences from the Dubai Department of Economy and Tourism (DET) before conducting any business activities outside their designated zones.

Types of Licences Issued by DET:

Mainland Branch Licence – Allows a freezone company to establish a branch in mainland Dubai.
Headquarters Branch Licence – For companies that wish to maintain their headquarters in the freezone while operating a branch in the mainland.
Activity-Specific Permit – Grants permission for specific business activities in mainland Dubai without opening a full branch.

Licence Validity & Renewal

All licences are valid for one year.
Businesses must renew their licences annually to continue operations in mainland Dubai.

Compliance Requirements for freezone Companies Expanding to Mainland

To operate legally in mainland Dubai, freezone businesses must meet strict compliance requirements set by the Dubai Department of Economy and Tourism (DET).

Key Compliance Obligations:

Maintain Separate Financial Records – Businesses must keep independent financial statements for their mainland operations.
Follow Federal & Local Regulations – Companies must comply with all UAE laws, labour regulations, and tax policies.
Undergo Regular Inspections – DET and other licensing authorities will inspect businesses to ensure adherence to regulations.
Meet Compliance Deadlines – Companies must comply within one year of obtaining a licence. A one-year extension may be granted if required.

Key Benefits for Dubai freezone Business

The new resolution significantly enhances business opportunities in Dubai, making it easier for freezone companies to expand into the mainland. The key benefits include:

Easier Expansion: freezone businesses can now establish branches in mainland Dubai, removing previous restrictions.
More Business Opportunities: Companies can apply for permits to conduct specific activities outside their freezones, enabling them to reach a broader market.
Simplified Licensing: Businesses only need to obtain a licence from the Dubai Department of Economy and Tourism (DET) and renew it annually.
Boosting Foreign Investment: The new regulation makes Dubai more attractive for international investors by offering seamless integration between freezones and the mainland.
Supporting Dubai’s D33 Agenda: This resolution aligns with Dubai’s D33 Economic Agenda, which aims to double the size of the economy by 2033 and position Dubai among the top three global economic cities.

Procedure for freezone Companies to Expand to Mainland Dubai

As per the new regulation of Dubai, if a freezone company in Dubai wants to expand its operations into the mainland, it must follow these key steps:

Determine Business Eligibility

Check if your business activity is allowed under the new resolution.
DET, in coordination with other authorities, will release a list of approved economic activities within six months.

Apply for Mainland Business Licence

Submit an application to the Dubai Department of Economy and Tourism (DET) for a mainland branch licence.

Choose the type of licence:

Mainland branch of a freezone company
Branch with headquarters in the freezone
Permit for specific business activities

Secure Approvals from Relevant Authorities

Some industries require additional approvals from regulatory bodies (e.g., healthcare, education, financial services).
The company must comply with federal and local laws governing its operations.

Maintain Separate Financial Records

Businesses expanding to the mainland must keep separate financial records for operations outside the freezone.
Financial statements must be in compliance with UAE regulations and may be subject to audits.

Lease a Physical Office (if required)

Some business activities may require office space or commercial premises in mainland Dubai.
Lease agreements must be registered with Ejari (Dubai’s rental contract system).

Register for VAT (if applicable)

If the company meets the UAE’s VAT threshold, it must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA).

Apply for Employee Visas & Labour Permits

freezone companies expanding to the mainland must comply with UAE labour laws for hiring employees.
Apply for employee visas and work permits through the Ministry of Human Resources and Emiratisation (MOHRE).

Undergo Compliance Inspections

Businesses must undergo regular inspections by DET and other licensing authorities to ensure compliance.

Renew Licence Annually

The mainland licence is valid for one year and must be renewed annually to continue operations.

Meet the Compliance Deadline

Companies have one year to comply with the new resolution.
If needed, DET may grant a one-year extension upon request.

By following these steps, freezone companies can successfully expand into mainland Dubai while ensuring compliance with all regulatory requirements.

Key Takeaways for Dubai freezone Companies

Dubai’s new resolution presents a game-changing opportunity for freezone businesses to expand into the mainland, unlocking new markets and growth potential. Companies must secure the necessary licences from DET, maintain regulatory compliance, and ensure separate financial records for mainland operations. With simplified processes and enhanced business opportunities, now is the perfect time for companies to leverage this expansion.

Take the Next Step with Filings.ae!

Expand your freezone business into mainland Dubai with ease! Filings.ae provides expert assistance in securing licences, ensuring compliance, and navigating the expansion process seamlessly. Get started today—contact us now to simplify your business expansion!

Get Started!