The UAE is always making its economy better for businesses. In 2026, there are big updates coming for how companies work in Free Zones and on the Mainland. These changes help entrepreneurs and startups follow the new rules and find new ways to grow.
Smart Zone knows all about these updates and can guide you through them step by step so your business stays safe and strong.
Big Updates for Free Zone Companies in 2026
Dubai’s new rule, Executive Council Resolution No. 11 of 2025, changes how Free Zone companies can work. From 2026, these companies can do business on the Mainland without starting a whole new onshore company. This makes things easier if you want to sell to local customers while keeping Free Zone perks like full ownership from other countries and no tax on most income.
Now, Free Zone companies have choices like getting a branch license, a linked Mainland license, or a short-term permit for quick projects. These options cut down on extra work and let businesses grow faster. But you must keep separate books for Free Zone and Mainland money to follow the new clear rules on taxes and reports.
This helps everyone see where your income comes from. Companies that already trade on the Mainland have until March 2026 to get the right papers or face fines.
Mainland Business Rules for 2026
Mainland companies will see changes too. They may pay the normal 9% company tax on profits over AED 375,000, but small ones under that can pay zero. Free Zone companies moving to the Mainland must follow the Department of Economy and Tourism (DET) rules and send in financial papers that split out income clearly.
Not every type of work can get a branch or permit. The DET will share a list of okayed activities soon, so check that before you apply.
These updates make the Mainland more open but add checks to keep things fair. Businesses need to plan ahead to avoid surprises with taxes or licenses.
Dual Licenses and Growing from Free Zone to Mainland
The new rules push for dual licenses, so Free Zone companies can open Mainland branches and keep their home benefits. Abu Dhabi and other places are adding more dual options too, like easier office rules in the first year on the Mainland.
You can now pick smart paths: stay all in the Free Zone, shift part to the Mainland, or mix both to reach more customers with less hassle.
This flexibility helps small startups test ideas and big firms grab more market share. Costs are low too, about AED 10,000 a year for a branch or AED 5,000 for a permit, and no local partner is needed.
Staying on Track with Rules in 2026
Besides licenses, new must-do rules are coming. ESG reports under Federal Decree-Law No. 11 of 2024 are required for all businesses. This means tracking gas emissions that warm the planet, keeping records for years, and sharing plans to fight climate change. It covers Free Zone and Mainland alike, showing the UAE’s push for green growth.
You also need good accounting, tax filings, and license renewals to skip penalties. Economic Substance rules tie in now – Free Zone companies must show real work in the UAE to get zero tax on good income. If not, you pay 9% on some parts. Get help from pros to handle all this right.
How to Get Ready for UAE Business Setup in 2026
Start planning now to make the changes work for you. Here are easy steps:
- Check the DET’s list of allowed activities for branches or permits.
- Look at your best setup (full Free Zone, full Mainland, or a mix).
- Fix your books and rules to match the new tax and ESG needs.
- Talk to business setup experts for help with licenses, banks, and visas.
With good prep, you can use these 2026 rules to grow your business big and safe in the UAE. The country still offers zero personal tax, full ownership in most spots, and a huge market to sell in.
Ready to Set Up or Update Your UAE Business for 2026?
Don’t wait for the rules to hit, team up with Smart Zone today. We make Free Zone and Mainland setups simple, fast, and worry-free. From picking the right license to handling taxes and ESG reports, our experts guide you every step. Thousands of happy clients trust us to turn ideas into success.
Get your free quote now:
Call or WhatsApp: +971 58 541 7444
Email: info@smartzone.ae
Visit: www.smartzone.ae
Your 2026 business boom starts here with Smart Zone.
