How to Convert UAE Free Zone Company to Mainland — Guide 2026
Converting a free zone company to a mainland entity (or adding a mainland branch) is sometimes necessary as businesses scale. Here is the 2026 guide.
In this guide:
Why Convert to Mainland
- UAE market access: You want to directly serve UAE retail customers or win government contracts
- Physical locations: You need UAE mainland office or shop fronts
- Activity restriction: Your activity is restricted or not available in free zones
Three Paths from Free Zone to Mainland
- Option 1 — Close free zone company, open new mainland company: Full transition; clean slate
- Option 2 — Keep free zone company, add mainland branch: Dual structure; free zone for international business; mainland for UAE market
- Option 3 — Mainland commercial agency: Appoint a UAE national as commercial agent to distribute in UAE; free zone company sells to agent
Mainland Company Setup Process
- Choose DED licence or emirate authority (DED for Dubai mainland)
- Select business structure (LLC 100% foreign ownership now allowed in most sectors)
- Submit documents: Passport, NOC from free zone if applicable, lease for physical office
- Pay DED fees: AED 15,000-50,000 depending on activity
- Receive DED licence: 1-3 weeks
Dual Structure: Free Zone + Mainland
- Many businesses: Operate both entities simultaneously
- Free zone: Holds international business; benefits from QFZP tax status
- Mainland: Serves UAE consumers; holds UAE-specific contracts
- Inter-company: Must be arm-length transactions between the two entities (transfer pricing)