Mainland Company Registration in Dubai, The Next Step for Your Free Zone Business

The business landscape in the UAE, particularly Dubai, is constantly in motion and driven by a vision to nurture a connected and thriving economy. As an economic giant and launchpad for acceleration, the emirate has been actively accommodating a variety of entrepreneurial structures — including the mainland, free zone, and offshore models — with utmost effort for decades.

Today, mainland company registration in Dubai is gaining more relevance than ever before. With the Dubai Executive Council Resolution No. (11) of 2025 released in early March, free zones bustling with entrepreneurialism and opportunity can now integrate more easily into the mainland economy.

If you’re operating a free zone business in the UAE, here’s what you need to know about expanding into Dubai’s mainland.

DET and Mainland Company Registration in Dubai

A mainland company in Dubai is an onshore business that receives its license from the Department of Economy & Tourism (DET) and has the ability to trade anywhere across the UAE and internationally. A free zone, by contrast, is a designated area offering benefits like 100% foreign ownership, one-hour business setup, and 0% taxes on income.

Mainland registration through the Department of Economy and Tourism (DET) offers significant advantages for businesses in Dubai. It allows unrestricted access to the entire UAE market, enabling companies to operate without geographical limitations. Businesses can also engage directly with both local and international clients, with the flexibility to expand across diverse activities. Thanks to recent reforms, most sectors now permit 100% foreign ownership, boosting investor confidence. Additionally, companies can sponsor residency visas for employees and their families, and are eligible to bid for high-value government contracts, making mainland registration a strategic move for long-term growth.

DET’s Role in Dubai’s Business Growth

From pioneering major sectors like technology and tourism to fostering entrepreneurship, the Dubai DET Business Initiatives have always aimed to create an ideal ecosystem for business success. DET’s strategic leadership, policy innovation, and integrated approach to economic and tourism development have been instrumental in Dubai’s rapid growth. By driving diversification, supporting SMEs, attracting FDI and talent, and positioning Dubai as a global destination, DET continues to play a vital role in shaping the emirate’s future as a leading business and tourism powerhouse.

The DET is the central authority entrusted with planning, supervising, and expanding Dubai’s commercial and tourism sectors — critical to delivering on the Dubai Economic Agenda (D33), where the goal is to double GDP by 2033.

Given the city’s potential, especially with over 18 million international overnight visitors in 2024, expanding into Dubai’s mainland is a crucial strategic move for companies looking to maximise growth.

Considering how there’s massive market potential to tap into in Dubai mainland, with over a whopping 18 million international overnight visitors in 2024, this seems to be the way forward. So, expanding into the mainland is crucial for long-term growth.

Opportunities for Businesses in Dubai

• Larger market access:
  With mainland company registration Dubai, free zone businesses can now remove previous geographical restrictions and access the wider UAE market of over 11.2 million residents, while retaining their free zone benefits.

• Diversification of operations:
  Companies that once operated narrowly within free zones can now expand into new sectors and industries. For instance, a free zone-based e-commerce company could now branch into opening a law firm or freelance without heavy restrictions.
  

• Ability to participate in government projects:
  Mainland companies are often prioritised for national and state-funded projects. By expanding, free zone businesses will enjoy greater visibility and opportunities to contribute to Dubai’s economic growth initiatives.

‍What to Consider Now When Operating in Dubai Mainland

• Corporate taxation:

The UAE has flexible tax policies, and a business located in Dubai free zones would incur lesser costs because the country offers some of the lowest corporate and personal tax policies. For instance, if a company sets up in a Qualified Free Zone like Meydan Free Zone, it will benefit from exemptions on import and export duties, along with 0% corporate and personal taxes.

But with this new policy, a free zone company that does business with the mainland would be subjected to 9% corporate tax on their income. This means, if you are a free zone company hoping to expand to the mainland, it would be important to weigh the gains from accessing larger markets against newer tax obligations that would impact your business.

• Regulatory requirements:

Once on the mainland, all UAE regulations and laws covering employment, consumer protection, environmental rights would apply to your free zone business. Maintaining separate financial records for both zones, inspections by the regulatory bodies, and adherence to VAT regulations will be a part of operating on the mainland.  

How Meydan Free Zone Simplifies Mainland Access

Dubai’s business landscape is always in a state of constant flux. This new stance towards a more integrated economy has created a smoother pathway for free zone businesses to elevate opportunities for growth. Whether you are a startup seeking better market penetration, or a seasoned business wanting to diversify your activities, an environment like Dubai’s would be your ideal pick.  

Ready to explore the potential of mainland company registration Dubai for your free zone business in Dubai?

Contact us at Meydan Free Zone to learn more about licensing options and unlock solutions catered to your specific business needs.  

FAQs

1. Will corporate taxation apply if a free zone company expands to the mainland?

Yes. Income generated from mainland operations will be subject to a 9% corporate tax. However, income earned from within a Qualified Free Zone remains tax-exempt at 0%. Companies must maintain separate financial records to clearly distinguish between free zone and mainland revenues.

2. What are the primary costs involved in mainland company registration for free zone businesses?

The Dubai mainland company formation cost depends on factors such as your business activity, legal structure, and licensing needs. Partnering with free zones like Meydan Free Zone can help you navigate costs efficiently and ensure a compliant, cost-effective expansion.

3. What is the difference between a free zone license and a mainland license in Dubai?

A free zone license permits operations within designated zones and international markets, while a mainland license issued by the DET allows businesses to trade freely across the UAE. Expanding to the mainland usually requires meeting additional compliance, tax, and regulatory obligations.

4. Are there additional regulatory requirements for free zone companies expanding to the mainland?

Yes. Once operating in the mainland, businesses must comply with UAE labour laws, VAT regulations, and consumer protection standards. Separate accounting records for free zone and mainland activities are also mandatory.