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Locally: “It’s just easier, faster and cheaper,” explained a longtime Indian founder who started in a UAE free zone. But as you expand, you may need a Dubai mainland license to be able to bid for local tenders, sign some onshore contracts, or open a retail outlet -or work more easily with customers based in the UAE.

And the good news is: you do in most cases not “convert” the same license in-place. Rather, you typically establish another entity on the mainland (or a branch) and then shift operations — seamlessly, legally and without losing customers. Better yet, today’s rules say 100% non-Emirati foreign ownership for most mainland activities (ownership in some activities relates to the nationality of the owner).

Why founders shift from Free Zone to Mainland

You may decide to move when you notice one (or more) of these growth signals:

• You want to sign contracts that require a Dubai mainland trade license (common with government/semi-government or certain corporates).
• You need a physical shop, clinic, café, or showroom in a mainland location.
• You want more flexibility with where you can operate and advertise locally.
• You plan to hire more staff and want a wider onshore operational structure.
• You want to open additional branches across Dubai, or even other Emirates.

At the same time, remember that the free zone still has strong benefits for some [models] (exports; international services; holding companies or these types of activities regulated). So, many founders opt for a hybrid model. Get details on Business Setup in Dubai.

Three common pathways (choose what fits your goal)

1) Set up a new Mainland company (fresh license)

This is the most popular path. You set up a new entity under Dubai’s Department of Economy and Tourism (DET) then slowly migrate customers/contracts.

Best when: You’re looking for a fresh start, an updated mix of activities, a new brand or a clear plan for onshore expansion.

2) Open a Mainland branch of your Free Zone company

A branch also leaves the parent company in the free zone, and sees that the branch operates under mainland approvals.

Best when: you desire continuity (same parent) and want to maintain certain free zone benefits for specific revenue lines.

3) Mainland operating permit framework (where applicable)

There are already new forms in Dubai, to allow free zone entities which are eligible to work from the mainland options to do so on a DET related permit.

Best when: you need something as an operational bridge while you wait to become fully established on the mainland (availability and eligibility is subject to your free zone, activity and DET). Looking for a Business Setup in Dubai Mainland?

The step-by-step process (practical checklist)

Step 1: Confirm your “mainland-ready” activity

Mainland licensing depends heavily on the exact business activity (and sometimes external approvals). For example, consultancy differs from trading; food, education, healthcare, and tourism often require extra approvals.

Tip: Don’t assume your free zone activity name matches mainland categories. Instead, align your mainland activity first, then build the legal structure around it.

Step 2: Decide your legal structure

Most Indian owners choose one of these:

• Mainland LLC (popular for trading, services, general business)
• Sole establishment (limited use cases; liability considerations)
• Branch (if you want your free zone company to remain the parent)

Because 100% foreign ownership is permitted for most mainland activities, you usually keep full control (subject to activity rules).

Step 3: Reserve trade name and get initial approval (DET)

This stage confirms that DET accepts your chosen name, activity, and shareholder/manager setup.

You will typically prepare:

• Passport copy and visa/entry status for shareholder(s) and manager
• Proposed business activities
• Contact details and basic company profile

Step 4: Sort your office/tenancy (Ejari)

Most mainland licenses require a physical lease registered through Ejari (or an accepted workspace solution, depending on activity and set-up).

Plan ahead: office size can impact visa eligibility and total cost. Get details on Dubai Free Zone Company Formation.

Step 5: Draft legal documents

Depending on the structure:

• MOA (Memorandum of Association) for LLC
• Branch resolution and parent documents (for a branch route)

If you are in India during parts of the process, you may use a Power of Attorney (POA) so your consultant can sign and submit on your behalf (as allowed by the authorities and your chosen banks).

Step 6: Get the mainland trade license

Once documents and tenancy are ready, DET issues the mainland license.

At this point, you can:

• Open/adjust bank accounts
• Sign mainland contracts
• Register for labour/immigration systems if needed (for staff visas)

Step 7: Transition operations from Free Zone to Mainland (the “real” conversion)

This is where most founders either win or struggle.

A clean transition usually includes:

• Updating customer contracts and invoices
• Migrating payment links and merchant accounts
• Changing website/footer license details (where required)
• Vendor onboarding under the new mainland entity
• Employee visa moves (case-by-case; plan early)

Important: You can keep your free zone company active during a transition window to avoid business disruption. Obtaining an International Business License in Dubai.

Documents you’ll typically need (Free Zone → Mainland)

Here’s a simple planning table:

Category	Common items
Free zone side	Trade license, certificate of incorporation, shareholder/manager details, (often) NOC from free zone for certain changes/closures
Mainland side (DET)	Trade name reservation, initial approval, activity approvals (if regulated), Ejari, MOA/branch documents
People	Passport copies, Emirates ID (if applicable), manager appointment
Banking & operations	KYC files, business profile, invoices/contracts, office photos (sometimes requested by banks)

(Exact requirements vary by free zone, activity, and bank, so treat this as your baseline checklist.)

Corporate Tax: don’t break your tax position during the move

If you currently rely on free zone corporate tax positioning, be extra careful.

Under the UAE corporate tax rules, a Qualifying Free Zone Person can benefit from 0% corporate tax on qualifying income, while non-qualifying income gets taxed at the standard rate (and the rules include substance, audited statements, transfer pricing, and de minimis conditions).

Why this matters for conversion:

• If you open a mainland branch or start earning certain onshore income streams, you may change how your income gets treated.
• Planning your invoicing flows, customer types, and entity roles can protect compliance and reduce surprises.

Smart move: confirm your structure with a tax adviser before you sign the final licensing documents.

Special considerations for Indian owners (practical, real-world points)

Banking and KYC

Banks often ask for a clear story: where clients come from, what contracts look like, and how money flows. So, prepare:

• A one-page company profile
• Sample invoices/contracts
• Website and business activity explanation
• Proof of office/tenancy

Residency and visas

If you want a UAE residence visa under the new mainland entity, plan the timing so you don’t end up with overlapping cancellations and re-issuance issues.

India-side compliance (context)

If you manage funds between India and UAE, keep your accountant in the loop for documentation, remittance purpose codes, and audit trails. (This isn’t legal advice—just a practical reminder.) Get details on Visa Services in Dubai.

Common mistakes to avoid (so the move feels easy)

• Rushing the activity selection and then getting stuck with approvals later
• Closing the free zone license too early (and losing continuity)
• Not planning Ejari early, which delays the mainland license
• Ignoring corporate tax implications until year-end
• Switching bank accounts last minute, which disrupts collections

Related Articles:

» What are the Requirements for Indians to Start a Business in Dubai?

» Benefits of Setting Up a Business in Dubai for Indian Entrepreneurs

» Why Dubai is the Perfect Launchpad for Indian Tech Startups?

» Top Business Opportunities in Dubai for Indian Entrepreneurs

» How to get a Dubai Mainland trade license as an Indian?

Quick timeline expectations 

While timing varies, many mainland set-ups progress faster when you have:

• Clear activity selection
• Ready documents
• Office solution confirmed

Also, Dubai continues to streamline business set-up via government platforms and structured licensing processes.

Making the Move from Free Zone to Mainland

For most makers in India, the solution is not a big flip. Independently, you establish a mainland structure, maintain your free zone operation throughout the handover process and migrate contracts, invoicing, staff and banking step by step.

If you plan your activity, tenancy, documents, and tax positioning upfront, you can expand onshore confidently—without interrupting revenue.

FAQs on “Convert from Free Zone to Mainland Later as an Indian Owner”