UAE Dual Licensing: Free Zone Benefits with Mainland Access
The UAE continues to attract entrepreneurs and investors with its pro-business environment, offering a range of company formation options. One of the most strategic developments in recent years is the emergence of UAE Dual Licensing – a solution that combines the benefits of a free zone company with the operational freedom of a mainland business.
In this article, we explain what UAE Dual Licensing is, how it works in Dubai and other Emirates, its advantages, conditions, costs, and how to apply. If you’re planning to establish your company in the UAE, understanding this hybrid model can significantly influence your business strategy.
What Is UAE Dual Licensing?
UAE Dual licensing is the issuance of a business licence in the name of a UAE free zone company for chosen business activities, and, in addition, the issuance of a second business licence in the name of the same free zone company, which allows the free zone company to conduct business in the UAE mainland.
Two business licences will therefore be issued, the first for business activities in the free trade zone and global business, and the second for business activities in the UAE mainland.
Dual licensing allows a company set up in a UAE free zone to legally operate in the mainland without the need to incorporate a separate mainland entity. In simple terms, it enables your business to benefit from the free zone’s incentives (such as 100% foreign ownership and tax exemptions) while also engaging with clients, projects, and contracts across the UAE mainland.
Only a few free zones offer dual licensing, and procedures can vary depending on the jurisdiction and business activity.
Key Advantages of Dual Licensing
- Wider Market Access
- Serve clients and projects throughout the entire UAE mainland, not just within the free zone.
- Bid for government tenders and mainland contracts previously restricted to DED-licensed companies.
- Cost-Efficiency
- Avoid duplicating costs by not establishing a full-fledged mainland company.
- Maintain the core benefits of a free zone setup – such as no corporate tax (if entitled for corporate tax exemption) and 100% foreign ownership.
- Flexibility in Business Operations
- Ideal for businesses that are digitally based or service-oriented but need physical interaction in the mainland, but also suitable for trade companies.
- Legal Compliance
- Ensures your business remains fully compliant with UAE laws when operating outside your free zone jurisdiction.
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- Ensures your business remains fully compliant with UAE laws when operating outside your free zone jurisdiction.
Can a Free Zone Company Open a Shop or Office in the Mainland?
A free zone company itself is not permitted to directly open a retail shop or office in the mainland without further approvals. However, with a dual licence, limited physical presence in the mainland is possible under the following conditions:
✅ Permitted under Dual Licence:
- Renting a shared desk or office space in the mainland (if allowed by the respective DED)
- Warehousing or distribution hubs (especially for logistics or e-commerce firms)
- Operating pop-up stores, event kiosks, or service desks with proper approvals
❌ Prohibited under UAE Dual Licence:
- Opening a retail shop, clinic, restaurant, or physical showroom in the mainland without setting up a full DED-licensed entity
- Leasing full premises for commercial retail without a mainland trade licence
⚠️ Depends on Business Activity:
- Consultancy, IT, digital services, marketing, and training activities may be permitted with a dual licence.
- Healthcare, F&B, retail, manufacturing usually require a full mainland company.
Always check with the relevant Economic Department and free zone authority, as rules vary.
Does a UAE Dual Licence Allow Business Across All UAE Mainland Areas?
Yes – a dual licence typically allows you to do business with clients across all Emirates. For example, if your company is registered in a Dubai free zone and obtains a dual licence from Dubai DET, you may:
- Operate with clients and partners across the UAE
- Deliver goods, provide services, or sign contracts with businesses and government bodies outside your free zone
📌 However:
Your ability to open physical locations or hire mainland staff may still be limited to the Emirate that issued the dual licence (e.g. Dubai). If you wish to open offices or shops in another Emirate, you may need to:
- Obtain local approval in that Emirate
- Set up a branch or establish a separate entity
How Does a Dual Licence Work in Practice?
Let’s take a typical example:
A company is formed in one of the Dubai Free Zones that provide dual licensing, as a digital consultancy. With a dual licence obtained via Dubai DET, the company legally provides services to Dubai mainland clients and delivers workshops onsite.
In this model:
- The main trade licence remains in the free zone.
- The dual licence serves as an extension – permitting operations on the mainland.
- Some physical presence in the mainland may be possible, subject to local rules and business activity type.
How to Apply for Dual Licensing
Step-by-Step Process (general guideline):
- Set up your company in a dual-licensing-enabled free zone
- Obtain your free zone trade licence
- Apply for a dual licence with the respective Emirate’s Economic Department
- Provide documentation, typically:
- Copy of the free zone licence
- No Objection Certificate (NOC) from the free zone
- Tenancy contract (if required)
- Activity list and business plan (optional)
- Pay relevant government and admin fees
- Receive your dual licence
What Does Dual Licensing Cost?
Costs vary by Emirate, free zone, and activity type. A general cost outline is as follows:
Fee Type | Estimated Range (AED) |
Free Zone Licence | 10,000 – 20,000 |
Dual Licence (e.g. from DED) | 3,000 – 7,000 |
Admin / NOC Fees | 1,500 – 3,000 |
Ejari / Office (if needed) | 5,000 – 30,000+, annually |
Who Should Consider Dual Licensing?
UAE Dual licensing is especially suitable for:
- Service providers who need to meet clients face-to-face in the mainland
- E-commerce companies delivering across the UAE
- Consultants, IT firms, trainers and other remote-friendly businesses
- Entrepreneurs who want low-cost access to mainland markets without setting up a separate entity
How VIICON Consulting Can Help
At VIICON Consulting, we guide clients through every step of the dual licensing process – helping you determine eligibility, complete paperwork, and ensure full compliance. Whether you need access to Dubai’s vibrant economy or wish to expand across all Emirates, we provide expert insight and support.
✅ Free initial consultation
✅ Tailored setup options
✅ DED and free zone coordination
✅ Visa and office support if required
Contact us today to explore how dual licensing can give your business the flexibility and reach it needs in 2025.
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