Quick Answer: A free zone company can rent an office in mainland Dubai, but renting a desk is not the same as being allowed to trade there. Since 2025, Dubai has a legal route: Executive Council Resolution No. 11 of 2025 lets free zone companies operate in the emirate through a branch licence or a temporary permit issued by the Department of Economy and Tourism, with the free zone’s prior approval. The permit costs AED 5,000 for up to six months; a branch run from the free zone costs AED 10,000 a year.
Many companies start in a free zone and later find their clients are on the mainland. The question then is whether you can take an office in Business Bay, or work for mainland customers, without setting up a new company. Until recently the answer was mostly "not without a mainland licence". In 2025 that changed.
The rules: NOC, branch licences and the 2025 resolution
Executive Council Resolution No. (11) of 2025 regulates free zone establishments working in Dubai outside their zone. It sets out three routes:
- A branch within the emirate. A branch located in Dubai, outside any free zone, licensed by DET.
- A branch operating out of the free zone. The branch stays at the free zone address but is licensed to carry out activities in the wider emirate. The fee is AED 10,000 a year, to issue or renew.
- A temporary permit. Permission for specific activities for up to six months. The fee is AED 5,000, to issue or renew.
In each case, the free zone authority must approve first; this is the "NOC" people talk about. You will also need your memorandum of association and free zone licence, and approvals from any sector regulator. Branches have no separate legal personality, so the parent company stays responsible. Financial companies licensed in DIFC are excluded.
In October 2025, Dubai launched the Free Zone Mainland Operating Permit under the same resolution (Dubai Media Office). It is for free zone companies holding a Dubai Unified Licence, costs AED 5,000 for six months, renewable, and is applied for online through Invest in Dubai. The first phase covers non-regulated activities such as technology, consultancy, design, professional services and trading. Permit holders keep separate financial records, and mainland revenue is subject to 9% corporate tax.
When you need a mainland branch or a new company
Which route fits depends on how much mainland work you do and for how long:
- Testing the market or a single project: the six-month permit is the lightest option.
- Steady mainland clients, team still in the zone: a branch operating out of the free zone.
- A team and an office in the city: a branch within the emirate, or a separate mainland company if you also need a local visa allowance and full independence.
A separate mainland company is still the cleanest answer for some businesses, especially those hiring locally or bidding for government work. Our guide to mainland vs free zone explains the trade-offs, and our company formation team can compare the routes for your activities.
What it costs
As of 2026, the government fees set by the resolution are:
- Temporary permit: AED 5,000 for up to six months.
- Branch licence operating out of the free zone: AED 10,000 a year.
- Branch within the emirate: fees are set under the applicable legislation, so ask DET or your adviser for the current amount.
Add your free zone’s own fees for the approval, any sector approvals, and the office itself. If you take a physical office in the city, budget for the tenancy as well. On our own indicative figures, a conventional 500 sq ft unit in Business Bay costs around AED 213,000 a year once staff and utilities are included, before fit-out; a serviced private office starts at AED 50,000 a year.
Ejari for free zone companies
Our Ejari works for mainland (DET) and free zone companies. Free zones normally register their companies at addresses inside the zone and issue their own lease documents, so a mainland Ejari does not replace those.
If you set up a branch within the emirate or a separate mainland company, the mainland entity will need its own registered address with Ejari. You can read more about the documents involved in our Ejari documents guide.
Business Bay options for a free zone company
Business Bay is mainland Dubai, a short drive from several free zones and on the Red Line metro. At Prime Tower you can choose:
- A private office in Business Bay, furnished and serviced, from AED 50,000 a year for teams of up to six, with adjoining suites for larger teams.
- A virtual office with Ejari, for a mainland or free zone company that needs an address but not a desk (ask for the current rate).
- Coworking desks from AED 1,800 a month, and meeting rooms from AED 200 an hour for client meetings in the city.
Before you sign anything, confirm which licence or permit the office will sit under. The office should match the route, not the other way round.
Steps to take
- Check that your activities are covered by the permit or branch route. The list is set by DET.
- Ask your free zone authority for its approval.
- Apply to DET, through Invest in Dubai, with your MOA, free zone licence and any sector approvals.
- Choose the office or address that the chosen route requires.
- Set up separate accounts for your mainland activity.
- Diary the renewal: six months for a permit, one year for a branch licence.
Our PRO services team can handle the applications and keep the renewal dates for you.
Common mistakes to avoid
- Treating an office lease as permission to trade. A desk or office in the city does not, by itself, let a free zone company serve mainland clients. The permit or branch licence does.
- Assuming the free zone licence covers everything. The UAE government portal notes that free zone companies are generally set up to operate within their zone (u.ae, running a business in a free zone). Work outside it needs the right approval.
- Mixing the accounts. The resolution requires separate financial records for activity outside the free zone, and mainland revenue is taxed at 9%. Set up the books before the first invoice.
- Missing the renewal. A six-month permit comes round quickly. Put the date in the same calendar as your free zone licence.
- Skipping the activity check. Not every activity is covered in the first phase. Confirm yours before you sign for an office.
Frequently Asked Questions
(1) Can a free zone company work with mainland clients?
Yes, with the right permission. Since 2025, a free zone company can apply to DET for a temporary permit or a branch licence to operate in Dubai, with its free zone’s prior approval.
(2) How much does the free zone mainland permit cost?
Under Executive Council Resolution No. 11 of 2025, a temporary permit costs AED 5,000 for up to six months and a branch licence operating out of the free zone costs AED 10,000 a year, as of 2026.
(3) Can my free zone company use a mainland Ejari?
Yes. Our Ejari works for mainland (DET) and free zone companies. A mainland branch or company will need its own Ejari.
(4) Do I need a new mainland company instead?
Not always. A permit or branch may be enough. A separate mainland company makes more sense if you are hiring locally, need your own visa allowance, or plan to bid for government work.
