How to Add a UAE Mainland Branch to Your Free Zone Company 2026
UAE free zone companies can sometimes open a mainland branch to sell directly to UAE mainland customers. Here is the step-by-step 2026 guide.
In this guide:
Why Would a Free Zone Company Open a Mainland Branch?
- Mainland sales: Free zone companies cannot directly sell to UAE mainland customers; they must sell via a mainland entity
- Government contracts: Many UAE government contracts require mainland licence
- Retail presence: Opening a physical shop or service centre in a UAE mall requires mainland licence
Branch vs New Mainland Company
- Branch: Extension of existing free zone company; same legal entity; branch manager required
- New mainland LLC: Separate legal entity; more flexibility; 100% foreign ownership now allowed in most activities post-2021 amendments
Step 1: Choose Your Emirate
- DED (Dubai): For Dubai mainland branch; Dubai Economy and Tourism
- ADDED (Abu Dhabi): Abu Dhabi Department of Economic Development
- SEDD (Sharjah): Sharjah Economic Development Department
Step 2: Apply for Branch Registration
- Documents: Free zone trade licence; MoA; parent company audited accounts; branch manager passport
- Local service agent: For some branch structures, a UAE national LSA may be required (advisory role; not ownership)
- DED process: Submit application; pay fees; receive branch trade licence
Step 3: Compliance for Branch
- Separate accounting: Branch must maintain separate accounting from free zone parent
- UAE CT: Branch income is UAE-source income; subject to UAE CT
- VAT: Branch must comply with UAE VAT if VAT-registered