Dubai has introduced an important rule that finally allows free zone companies to expand into the mainland without needing to fully change their business structure. As a CSPzone consultant, I will explain this new update in the simplest way possible so you understand what has changed, how the process works and what it means for your business.
This article is written for business owners who already operate in a free zone and want to grow into the Dubai mainland market.
Earlier, a company registered in a free zone could only operate inside that free zone or outside the UAE. Now, under the new rule, a free zone business can legally enter the mainland by getting a branch licence or permit from the Department of Economy and Tourism in Dubai, also known as DET.
This means you do not need to close your free zone company or convert it. You can simply open a mainland branch and keep both running at the same time.
Dubai made this decision as part of its long term economic agenda called D33. The goal is to double the size of Dubai’s economy by 2033 and make the city one of the strongest global business hubs.
Allowing free zone companies to enter the mainland helps achieve this goal by
• Increasing investment
• Creating more competition
• Giving businesses more freedom
• Making expansion easier and faster
This change benefits both the government and entrepreneurs.
Almost all free zone companies can expand to the mainland, except those in the financial sector inside DIFC.
If you are licensed under DIFC for banking, insurance or financial services, this rule does not apply.
For all other free zones such as JAFZA, DMCC, IFZA, RAKEZ, SHAMS, SPCFZ, Ajman Free Zone or Meydan Free Zone, the rule is valid.
The DET will issue an official list of activities that free zone companies are allowed to perform in the mainland. This list will be updated over time.
In simple words, you will be able to
• Sell products
• Offer services
• Sign contracts
• Work with mainland clients
• Open offices or warehouses
• Hire mainland-based employees
The specific activities allowed will depend on your business model.
Yes. Dubai requires all companies that expand into the mainland to keep separate financial records for their free zone activities and their mainland branch.
This is important because
• Free zones follow different tax rules
• Mainland operations may have their own compliance steps
• It helps auditing and avoids confusion
CSPzone can connect you with accountants who can manage both sides properly.
Here is the expansion process explained in the simplest way.
Check your activity and confirm whether it is allowed in the mainland under the new rule.
Apply for a branch permit or branch licence with Dubai DET.
Submit your free zone company documents including licence copy, shareholder passport copies and company resolution.
Select a mainland office location if required for your activity. Some activities can run without an office.
Receive your branch licence and begin operating legally in the mainland.
The full process is simple and CSPzone will guide you step by step.
This update opens a huge opportunity for thousands of businesses.
You can now
• Keep your free zone structure
• Operate legally in the mainland
• Reach new customers
• Work with government and private companies
• Grow your business without forming a new entity
Many companies used to hesitate because setting up in the mainland required restructuring. Now you can simply extend your operations.
At CSPzone, we help free zone companies expand into the Dubai mainland by handling every step of the process. Many business owners are confused about documentation, activity selection and cost. We make it simple and clear.
If you want to know whether your free zone company can expand, which activity is allowed, or how much the branch permit will cost, our consultants will guide you completely.
