Hi, I'm Oliver from New Zealand. I started my business in a UAE Free Zone a few years ago, but now most of my customers are on the mainland. Can I convert my Free Zone company into a mainland company, or do I have to start all over again?
Hi Oliver,
I'm Nurain Sheikh, and this is a common question from business owners whose companies have grown beyond the Free Zone market.
The short answer is no, a UAE Free Zone company cannot be directly converted into a mainland company under UAE law. Since both structures are governed by different authorities, there isn't a simple conversion process.
If your goal is to move completely to the mainland, the usual approach is to:
- Cancel your existing Free Zone licence after clearing all outstanding obligations and obtaining the necessary No Objection Certificate (NOC).
- Apply for a new mainland licence through the relevant Department of Economy and Tourism (DET) or Department of Economic Development (DED).
- Lease a mainland office with a registered Ejari.
- Transfer or reissue investor and employee visas under the new mainland company.
However, a full migration isn't always necessary.
Recent regulations, including Dubai Executive Council Decision No. 11 of 2025, have introduced more flexibility. Depending on your business activity, you may be able to continue operating your Free Zone company while obtaining:
- A mainland branch licence,
- A permit to conduct specific mainland activities, or
- A headquarters branch arrangement that allows certain mainland operations without closing the Free Zone entity.
These options can save both time and cost, especially if you want to keep the benefits of your existing Free Zone business while expanding into the UAE mainland.
Before making a decision, it's worth comparing the tax implications, licensing costs, visa requirements, and long-term business plans. In many cases, opening a mainland branch is a more practical solution than shutting down an established Free Zone company.
