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Marie-Agnès Descrozaille - Partner Counselor at Law - Astruc & Co. | UAE Legal News: Free Zone Companies Going Mainland
New Regulations on Freezone Company Operations [Dubai Executive Council Resolution No. (11) of 2025/17 March Pub. 21 March]
I am thrilled to share the latest UAE Free Zone Regulation 🇦🇪 transforming the landscape for foreign businesses looking to expand in the UAE. This marks another significant step dedicated to easing the business implantation for foreign enterprises, furthering the business liberalization trend in 2025! 🚀
Key Points Spotted For You :
Expanded Operational Scope: All Free zone companies in Dubai (except those regulated by DIFC) will be allowed to carry out their activities outside the Free Zone and operate anywhere within the Emirate / on Mainland, provided they obtain a Branch License or an Activity temporary permit,
- Mainland Branch License: Allows companies to maintain their headquarters within the free zone while operating on the mainland.
- License Validity: 1 year (renewable)
- Annual Fee: AED 10,000
- Activity-Temporary Permit: Suitable for short-term operations
- Permit Validity: 6 months (renewable)
- Fee: AED 5,000
Simplified Structure: Eliminates the need for separate entities or third-party. Branches are not treated as independent legal entities separate from the parent establishment.
Dual Financials Records: Companies must maintain dual financial records—one for the Free Zone operations and another for mainland activities—to ensure compliance without establishing a separate legal entity.
Timeline: The Dubai Department of Economy and Tourism (DET) will specify which activities are eligible within the next six months, i.e., by the end of September 2025.
Congratulations UAE: This regulatory shift has cleverly supports Dubai’s ambitious goal to double its economy by 2033 and significantly eases the way for free zone businesses to expand across Dubai, fostering a more integrated and flexible business environment.
