Can a Free Zone Company Do Business in the Mainland 2025?
As the UAE business environment continues to evolve, free zone companies are increasingly exploring opportunities to expand into the mainland market. In Dubai, this has been clarified by Executive Council Resolution No. (11) of 2025, which sets out how free-zone companies can conduct certain activities in the mainland under specific approvals. Dubai Land Department
In this article, Trinity Group explains what these developments mean, how free zone and mainland operations differ, and why professional guidance is essential to ensure compliance and success.
Understanding Free Zone and Mainland Companies
Free zones are special economic areas established to attract foreign investment by offering benefits such as 100% foreign ownership, simplified setup, and other incentives. They are designed to facilitate international trade and services.
Mainland companies are licensed to operate anywhere in the UAE and can trade directly with both businesses and consumers, under local commercial laws and regulations. Ministry of Economy+1
Can a Free Zone Company Trade in the Mainland?
Yes, but only under defined conditions. In Dubai, Executive Council Resolution No. (11) of 2025 allows a free-zone establishment to conduct activities in the mainland if it obtains one of the approvals issued by the Department of Economy and Tourism (DET)—either a licence to establish a branch (in the Emirate or operating out of the free zone) or a temporary permit for specific activities. The company must also comply with applicable laws and keep separate financial records for mainland activities. Dubai Land Department
This flexibility opens valuable opportunities, but it also introduces regulatory and tax obligations that must be carefully managed. Mainland activities are subject to Dubai legislation, audits and inspections. Dubai Land Department
Why Structure and Compliance Matter
Expanding into the mainland can increase your market reach, but the structure you choose determines how corporate tax applies, what approvals are needed, and whether you can retain free-zone tax incentives available under UAE law. Many owners assume a free-zone licence automatically allows mainland trading; in reality, permissions are activity-specific, and non-compliance risks penalties or suspension. Dubai Land Department
Why Partner with Trinity Group
At Trinity Group, we help entrepreneurs and established companies navigate these rules with confidence reviewing current structures, identifying compliant paths to expansion, advising on corporate-tax efficiency, and coordinating with authorities to streamline approvals.