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Free Zone Law (DIFC / ADGM / JAFZA)Answered

Can my free zone company do business with mainland Dubai clients?

Asked by Anonymous·Jun 10, 2026·1 answers
I set up my company in a UAE free zone because it was quicker, but most of my potential customers are mainland businesses. I keep hearing conflicting things about whether I can invoice them directly, need a distributor, or need some extra approval. How does this actually work in practice?

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

AI-generated answer

Jun 11, 2026
A free zone licence does not by itself entitle you to do business onshore. For goods, products moving into the mainland must pass through an entity licensed onshore — typically a mainland distributor or commercial agent — with customs duty applying; alternatively, establish your own mainland branch or company for onshore sales. For services, it turns on where and how the work is performed; several free zones now offer dual-licensing arrangements with the Dubai authorities allowing defined onshore activity — check what your zone provides. Avoid simply invoicing mainland clients as if the restriction did not exist: that risks fines and weakens you in any client dispute. Full step-by-step guide: Mainland vs free zone company setup. A corporate lawyer familiar with your free zone can chart the compliant route.
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