Dubai, UAE

Requirements for a free zone company to conduct business on mainland

Hello,

I read the law 2011 Article 14 & Article 23 that says a branch of a free zone company in the UAE is allowed to conduct business on the mainland if I get a license and open a branch.

I just want to confirm, I have a Free Zone company in the UAE and I sell to other countries right now. I want to begin selling in Dubai.

If I get a license from DED and open a branch on the mainland, will I be allowed to sell the clients directly or I will be allowed to sell just distributors in Dubai?

And do I need a local sponsor for this case or a Local Service agent is enough?

Regards

Elias Aoun

Maha Bin Hendi Law Firm

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10 Nov 2019, 06:03

Hello.

The branch will be wholly owned by the free zone entity. In the UAE, a local service agent will need to be appointed.

However, the branch will be exempted by the Ministry of Economy from appointing a local service agent if the free zone entity is owned 51% or more by UAE nationals.

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