If you want to maximize your presence in the UAE market, the dual license offers a strategic advantage. This framework enables a single entity to operate in both a Free Zone and the Mainland, providing broad market access and combining regulatory benefits with commercial reach.
In the current economic environment, the dual license supports integrated growth by simplifying operations, reducing overhead, and positioning your business for both local and international opportunities.
What is a Dual License in Dubai?
A Dual License in Dubai allows a single legal entity registered in a participating free zone to conduct business both within the free zone and directly in the UAE mainland market. This structure eliminates the need for a separate mainland company or local sponsor, providing unified access to both economic jurisdictions under a single license.
Types of Dual Licenses in UAE
When it comes to dual licenses in Dubai, there isn’t a single type, but rather different options depending on the specific needs of your business and the chosen free zone.
Here’s a breakdown of some common types:
- General Trade License: This allows you to trade in a wide range of goods and services, both within the free zone and on the mainland. It’s the most flexible option, but specific activities might still be restricted.
- Professional License: This caters to professionals like consultants, lawyers, or doctors, allowing them to offer services in both markets.
- E-commerce License: Ideal for businesses primarily operating online, enabling you to sell products and services through e-commerce platforms to both local and international customers.
- Specific Industry Licenses: Some free zones offer specialized licenses for specific industries like media, technology, or healthcare, granting access to relevant markets within the free zone and mainland.
Remember, the availability of specific types and their exact details may vary depending on your chosen free zone and business activity.
Key Free Zones Offering Dual License Capabilities (UAE)
- Dubai Airport Freezone (DAFZA): Known for offering dual licenses to expand reach into the local market.
- Dubai World Trade Centre (DWTC) (DWTC Free Zone): Also provides dual licensing for broader operations.
- Dubai Multi Commodities Centre (DMCC): While a popular free zone, it offers options for onshore access through partnerships or specific license types, though its primary focus is trading.
- Meydan Free Zone: Offers flexibility, including potential dual license benefits for mainland access.
- Jebel Ali Free Zone (JAFZA): A massive zone with various clusters (like DUCAMZ, DWSC) that provides comprehensive facilities and integration options for mainland reach.
- Dubai International Financial Centre (DIFC): A major financial hub with its own regulatory framework.
- Sharjah Media City (Shams) & Creative City Fujairah: Popular for media, creative, and freelance activities, often with lower costs.
- Dubai Silicon Oasis (DSO): Technology and innovation focused.
- Abu Dhabi Zones: Such as Khalifa Industrial Zone Abu Dhabi (KIZAD).
How to Get a Dual License in Dubai
To obtain a dual license in Dubai, you must meet specific legal, administrative, and operational requirements:
Step 1: Select an Eligible Free Zone
Not all free zones offer dual licensing. First, confirm that your selected zone participates in the program. Key providers include:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Airport Free Zone (DAFZA)
- Dubai Silicon Oasis (DSO)
- Dubai World Trade Centre (DWTC)
- Dubai International Financial Centre (DIFC) (primarily for financial services firms)
Action: Review each zone’s industry focus, fee structure, and support services to ensure they align with your business model.
Step 2: Establish Your Free Zone Company
The dual license extends your primary free zone entity. Complete the standard setup first:
- Determine your legal structure (e.g., FZCO, FZE, Branch).
- Secure initial approval and register a unique trade name.
- Submit all required documents (passports, business plan, etc.) to the free zone authority.
- Lease office space within the free zone.
- Obtain your initial Free Zone License.
Step 3: Prepare & Submit the Dual License Application
Once your free zone company is active, apply for the mainland extension through your free zone’s business services department.
- The free zone authority will coordinate with the Department of Economic Development (DET) on your behalf.
- Submit the dual license application form with the required documents, which typically include:
- Copy of your Free Zone Trade License.
- Board resolution approving the mainland expansion.
- Passport copies of the company manager/owner.
- A Tenancy Contract for a physical office space on the mainland (mandatory requirement).
- Any relevant sector-specific approvals (e.g., from the Dubai Health Authority for medical activities).
Step 4: Pay Fees & Await DET Approval
- Pay all associated fees, including DET license issuance charges and any free zone service fees.
- The free zone will coordinate with the DET for review. Processing times vary depending on your business activity and the completeness of your documentation.
- Once approved, you will receive your official DET Mainland License, linked to your free zone company.
Step 5: Finalize Setup & Commence Operations
With your dual license, complete the final administrative steps:
- Complete your mainland office setup in accordance with the submitted tenancy contract.
- Process employee visas for staff working on mainland activities, often facilitated through your free zone.
- Open corporate bank accounts for mainland operations, if required.
- Begin trading in both jurisdictions under your unified legal entity.
Important Consideration: While the process is integrated, ongoing compliance is required. Ensure you meet the separate renewal requirements, audit obligations, and activity scopes for both your free zone and mainland licenses.
Partnering with a corporate services provider such as Shuraa Business Setup can streamline the process, from selecting the appropriate free zone to securing your mainland office and ensuring compliance.
Key Benefits of a Dual License in Dubai
Securing a Dual License is a strategic decision that offers businesses a competitive advantage in Dubai’s dynamic market. The key benefits include:
- Unified Market Access: Eliminate barriers between free zones and the mainland. Operate as a single legal entity, serving clients in the free zone, internationally, and throughout the UAE, including government and corporate tenders.
- Operational Efficiency and Cost Reduction: Avoid establishing and maintaining two separate companies. Consolidation reduces setup costs, administrative overhead, licensing renewals, and compliance requirements.
- Strategic Flexibility: Benefit from both regulatory frameworks. Retain key free zone advantages, such as 100% foreign ownership, full profit repatriation, and import/export tax exemptions, while gaining the ability to conduct business on the mainland without a local service agent.
- Enhanced Credibility and Visibility: A Dual License demonstrates an integrated market presence. It strengthens your brand’s credibility with local partners, banks, and clients who value mainland market access.
- Streamlined Logistics and Operations: A mainland commercial license allows your company to manage local logistics, establish onshore offices or warehouses, and invoice clients for mainland activities without intermediaries.
- Access to Government Contracts: Many government and large corporate tenders in the UAE require a mainland commercial license. A Dual License makes your business eligible to bid for these opportunities directly.
In summary, a Dual License enables a free zone company to operate as an integrated business in the UAE, expanding access to new opportunities and supporting growth.
What are the Restrictions on Dual Licenses?
Here are the key restrictions on Dual Licenses in Dubai:
1. Free Zone Dependency & Eligibility
- Dual licenses are available only in select free zones, such as Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSOA), and Dubai World Trade Centre (DWTC). Your company must be established in a participating free zone.
- The free zone company remains the primary legal entity. Mainland access is an extension of its activities, not a separate entity. You must maintain your free zone presence to retain the dual license.
2. Geographical & Premises Stipulations
- To activate mainland trading, you must secure a physical office or operational warehouse on the mainland. Virtual offices or flexi-desks are generally not accepted for this license.
- Mainland activities are typically permitted only within the emirate that issued the license. Expanding to other emirates may require additional approvals or trade licenses.
3. Regulatory and Compliance Limits
- You may conduct only those mainland activities approved and listed on your dual license. Activities outside this scope are not permitted.
- Although the entity is unified, businesses often maintain separate bank accounts for free zone and mainland transactions. Annual financial audits are required, and all mainland revenue and activities must be fully reported and comply with all applicable laws and regulations.
- The license removes the requirement for a UAE National Local Service Agent but does not affect the free zone entity’s 100% foreign ownership structure.
4. Cost Structure
- You are responsible for both the free zone license fees and the dual license or mainland authorization fees, in addition to rent for the required mainland office.
Conquer the Full Dubai Market with a Single, Strategic Move
Securing a Dual License is essential for businesses seeking to operate across the UAE. However, the process requires careful attention to regulations, eligibility, and setup procedures.
Expert guidance simplifies this complex process.
Shuraa is your partner throughout this expansion, supporting you from initial consultation to your first mainland transaction:
- Strategic Planning: Identifying the ideal free zone and license structure for your goals.
- Streamlined Processing: Handling all documentation, approvals, and government liaison with precision.
- Full-Spectrum Setup: Assisting with mainland office procurement, visa processing, and banking facilitation.
- Ongoing Compliance Support: Ensuring your dual operations remain seamless and compliant.
Expand your business beyond a single market and establish a strong presence in both the free zone and mainland.
Start your Dual License process with a consultation. Contact Shuraa to gain full market access.
- Call: +971 4 4081900
- WhatsApp: +971 50 7775554
- Email: info@shuraa.com
Let’s work together to achieve your business goals.
