Setting up a business in a Free Zone in Dubai is often the first step for many entrepreneurs. It’s cost-effective, fast, and offers 100% ownership. But as the business grows, many companies consider moving to the Mainland to expand operations and reach a broader local market. This guide explains how to convert from a Free Zone company to Mainland Dubai, step by step.
Why Convert to Mainland Dubai?
Free Zones come with some limitations. You can’t directly trade in the UAE local market without a distributor or agent. There are also restrictions on office locations and certain business activities. Shifting to the Mainland removes these barriers and offers benefits like:
Wider Market Access
You can do business directly with UAE customers and companies.
Government Contracts
Mainland companies are eligible to bid for government tenders.
Office Flexibility
Freedom to open offices or branches anywhere in Dubai or the UAE.
Key Differences: Free Zone vs Mainland
Free Zone companies offer 100% foreign ownership and simplified setup, but limit trading within the UAE. Mainland companies can operate across the UAE and deal directly with local markets but often require local partnerships. Choosing between them depends on your business goals, target market, and operational flexibility needs.
Free Zone Companies
- 100% foreign ownership
- Operate within limited jurisdiction
- Cannot directly trade in the local market
Mainland Companies
- Can trade anywhere in the UAE
- Can hire unlimited employees
- Can participate in large projects and tenders
Step-by-Step Process to Convert from Free Zone to Mainland Dubai
To convert from a Free Zone company to a Mainland company in Dubai, you must first cancel your Free Zone license, settle all dues, and obtain a No Objection Certificate (NOC). Then, apply for a Mainland license through the Department of Economic Development (DED) and meet all legal requirements.
Choose the Right Legal Structure
Before the transfer, choose your preferred legal entity—LLC, Sole Establishment, or Civil Company—based on your activity and partner structure.
De-register the Free Zone License
Apply to terminate your Free Zone company license. You’ll need to:
- Settle all dues
- Cancel visas
- Return your office keys
- Submit company closure forms
Obtain Approvals from Relevant Authorities
You’ll need:
- DLD approval (for real estate businesses)
- DED approval (Dubai Economic Department)
- NOCs from the Free Zone authority and other governing bodies
Reserve a Trade Name
Apply for a new trade name reservation with the Dubai Department of Economy and Tourism (DET).
Prepare a New MOA (Memorandum of Association)
If forming an LLC, draft a new MOA reflecting your business structure and partners. Notarize it with the Dubai notary public.
Choose Your Business Location
Select and register a physical office in a permitted mainland zone. A Ejari (tenancy contract) is mandatory.
Apply for Mainland License
Submit your documents to DED, including:
- MOA
- Tenancy contract
- Initial approvals
- Passport copies
Pay the required fees and collect your new Mainland License.
Documents Required for Conversion
- Free Zone license copy
- Company closure certificate
- Passport copies of shareholders
- New office tenancy contract (Ejari)
- Trade name certificate
- MOA for mainland entity
Estimated Timeframe and Cost
- Time: Typically 2 to 4 weeks
- Cost: Varies depending on legal type, business activity, and office size. Estimate AED 15,000 to AED 30,000+
Common Challenges During the Conversion
Common challenges during the conversion include delays in obtaining the NOC, navigating legal and documentation requirements, transferring assets and visas, and ensuring compliance with Mainland regulations. Business owners may also face difficulties in restructuring ownership, updating contracts, and managing downtime during the transition process. Professional help can ease these hurdles.
Visa Cancellation
You must cancel all existing Free Zone visas and reapply under the new mainland license.
NOC Delays
Some Free Zones may take longer to issue the No Objection Certificate, which delays the process.
Bank Account Update
After conversion, you’ll need to update your banking details and submit the new mainland documents.
Benefits of Converting to Mainland Dubai
- Full UAE market access
- No limit on employee visas
- Wider office location options
- Eligibility for government contracts
- Easier expansion in the GCC and internationally
Who Should Consider Converting?
- Retailers who want a storefront
- E-commerce businesses expanding to physical sales
- Consulting firms looking for corporate contracts
- Contractors and suppliers targeting government projects
Tips Before You Convert
- Consult a business setup advisor to ensure a smooth transition
- Close all liabilities in the Free Zone
- Get legal advice when drafting a new MOA
- Choose the right office to avoid Ejari delays
Conclusion
Converting from a Free Zone company to Mainland Dubai opens doors to new opportunities, from local trade to government contracts. It requires proper planning, paperwork, and approvals—but the long-term growth potential is worth it. If you’re ready to grow beyond Free Zone limits, Mainland Dubai is the next smart step.
Looking to convert your Free Zone company? Talk to our experts in Business Setup in Dubai, UAE for complete guidance.
FAQs
Can I keep my Free Zone company and open a new Mainland one?
Yes, many businesses operate both simultaneously. You must maintain separate licenses.
Do I need a local sponsor in Mainland Dubai?
For some licenses, yes. But certain professional and 100% expat-owned options are available under the new laws.
What happens to my existing visas during conversion?
All Free Zone visas must be cancelled. You’ll need to apply for new visas under the mainland license.
How long does the conversion process take?
Usually 2–4 weeks, depending on approvals and documentation.
Can I use the same trade name in Mainland?
Yes, if it’s still available. You’ll need to reserve it again through DED.
