Free zone to mainland · 2026
You cannot convert the licence directly. Since Resolution 11 of 2025 there are four routes onshore.
The direct answer
There is no direct conversion. Either cancel the free zone licence and open a DET company, or keep the entity via a branch or dual licence.
This is the decision. Three of these routes did not exist before Resolution 11 of 2025, and one of them, the dual licence, is what most owners with ongoing mainland revenue should look at first.
| Route | Keep FZ entity? | Cost (2026) | Best when |
|---|---|---|---|
| Full conversion | No | AED 38,000–80,000 y1 | Leaving the zone |
| Branch / subsidiary | Yes | Per DET schedule | Permanent onshore |
| Dual licence | Yes | AED 10,000 / yr | Ongoing revenue |
| Temporary permit | Yes | AED 5,000 / 6 mo | One project |
Why the switch
The reasons owners move onshore come down to a few differences that a free zone licence cannot bridge on its own. Here is the honest side-by-side.
If your customers are in the UAE, you need mainland access. But since 2025 that rarely means abandoning the free zone. A dual licence often gets you onshore while you keep the zone's tax and cost advantages.
The process
The full-conversion path and the dual-licence path diverge early. This is the sequence for adding a mainland route while keeping your free zone entity.
Decide between full conversion, branch, dual licence, or permit based on your mainland revenue.
Confirm your activity is on the DET list and permitted onshore.
Licence, MOA, shareholder papers, and any attestation for foreign documents.
File the branch, dual licence, or new company with the Department of Economy and Tourism.
Meet the office requirement for your route and process any mainland visas.
Register the mainland income correctly with the FTA and review your QFZP status.
Adding a mainland route reuses most of your existing company file. Have these ready and DET registration moves without avoidable delays.
Any parent-company or shareholder document issued abroad must be attested by the UAE embassy in the country of origin and the UAE Ministry of Foreign Affairs before DET will accept it.
Timeline
Adding a route is faster than a full conversion. These are advisory planning estimates, not published SLAs, and your activity sets the real pace.
Full conversion is slowest because it is really two processes: winding down the free zone entity and forming a new mainland company. Keeping the entity and adding a route avoids that.
The cheapest way onshore is rarely a full conversion. The Resolution 11 routes are priced in Article 12, and a full mainland setup carries the government stack below.
AED 39,500
Full conversion · New DET mainland company
Annual renewal
AED 15,000
Liability
Year one
DET trade licence
Commercial / professional activity
Initial approval & trade name
One-time registration
MOA notarisation
For an LLC structure
Municipality market fee
5% of annual office rent
Office / Ejari
Flexi-desk from, per year
Visa, per person
Establishment card & residence visa
Dual licence is AED 10,000/yr
Under Article 12, far below a full conversion's year-one cost for ongoing mainland trade.
Permit is AED 5,000
For up to six months, if you are testing mainland demand on one project.
Fees at cost
Government charges are passed through exactly as billed, with our fee disclosed up front.
The costliest errors when moving onshore are about tax and route choice, not paperwork.
Tax
The 0% QFZP rate is for qualifying free-zone income. Mainland trade is generally taxed at 9% above AED 375,000.
Do this instead: model the tax on mainland income before you commit.
QFZP
Non-qualifying revenue above the lower of AED 5m or 5% of total revenue can cost your QFZP status.
Do this instead: track the 5% limb, which usually binds first.
Consequence
Losing QFZP status applies for the tax period and the following years, not just once.
Do this instead: treat the 0% conditions as ongoing, not a one-off test.
Route
Closing the free zone entity forfeits its advantages when a dual licence would have kept them.
Do this instead: check the dual licence before a full conversion.
Deadline
The regularisation window is one year from 3 March 2025 with a possible one-time extension, not a fixed March 2026 date.
Do this instead: confirm the current deadline with DET.
Substance
QFZP status needs adequate substance, not just a licence, and mainland activity changes the picture.
Do this instead: review substance before and after the move.
Straight answers
The sponsor question is where most outdated advice shows up. Here is the current position.
You need a 51% local sponsor for mainland
Not for most activities. Federal Decree-Law 32 of 2021 allows 100% foreign ownership across most mainland business activities.
A local service agent owns part of the company
No. A service agent, used for some professional structures, holds no equity and no profit share. It is a paid representative role.
The 51% ownership rule is gone entirely
Not entirely. A narrow strategic-impact list still requires local participation under Cabinet Decision 55 of 2021.
Full conversion is the only way onshore
Outdated. Since Resolution 11 of 2025, a branch, dual licence, or permit lets you trade onshore while keeping the free zone entity.
A free zone licence lets me sell to mainland clients
No. Onshore trade needs a mainland route. A free zone licence alone does not permit direct mainland sales.
Government tenders are open to any UAE company.
Bidding for public sector work is one of the things mainland registration unlocks. A free zone licence does not bridge it on its own.
Real results from our clients
Real Google reviews from founders we have set up and kept compliant on the Dubai mainland.
Thank you to the team for supporting us with our company setup. Our case was not straightforward, especially the bank account opening, but they stayed committed and got it done.
I had a great experience opening a corporate bank account. The process was smooth and efficient. The staff were friendly, professional, and explained everything clearly.
The accounting and bookkeeping service has been exceptional. Attention to detail is impressive, and communication is always clear. Tasks are handled promptly.
They confirmed our activity grouping before filing and flagged an issue the bank would have raised. Licensed in under two weeks with no surprises on the invoice.
We came for a mainland LLC and stayed for renewals and PRO work. The same team answers the phone after the license is issued, which is rare here.
FAQ
Tell us your activity and how much of your revenue is mainland, and we will recommend the route, full conversion, dual licence, or permit, with an itemised quote. Often it is not the full conversion.
