New rules for Dubai Free Zone companies

In 2025, Resolution No. (11) was passed regulating the activities of free zone companies outside the free zone in Dubai Mainland. According to this resolution, companies and institutions licensed by the relevant free zone authority can operate in Dubai Mainland, subject to obtaining the necessary licenses or permits from the Dubai Department of Economy and Tourism (DET).

Companies operating outside the free zone are required to comply with all federal and local regulations and maintain separate records of transactions inside and outside the free zone. This requirement is also linked to the provisions of Federal Law No. 47 of 2022 on Corporate Income Tax.

In case of expanding operations outside the Emirate of Dubai, companies will need to obtain additional licenses and permits from the local authorities in accordance with the established rules.

Licensing of Operations

DET has the authority to issue permits for operations in Dubai Mainland and to license branches of companies. Specifically, two types of licenses are envisaged:

• A license for establishing a branch in Dubai mainland.
• A license for a branch with its headquarters in a free zone.

Both licenses are valid for one year and can be renewed. Permits for certain activities in the emirate can also be issued.

The resolution also sets out the requirements for licensing branches and details the procedures for obtaining permits, as well as the conditions for hiring workers.

Economic activities and regulation

Within six months of the resolution coming into force, the DET, in cooperation with the licensing authorities, is obliged to publish a list of economic activities that companies can carry out, depending on the type of license.

Companies licensed under the new resolution are subject to inspection in accordance with federal and local laws, as well as procedures agreed between the DET and the licensing authorities.

All companies already operating outside the free zones at the time the resolution comes into force are required to bring their activities into compliance with its provisions within one year. The Director General of DET has the right to extend this period for another year if necessary.

Resolution No. (11) cancels all regulations that contradict it and comes into force from the moment of its publication in the Official Gazette.

IT-OFFSHORE will help you understand all the nuances of the new resolution and obtain the necessary permits to work in mainland Dubai.