Question: Can a UAE Freezone company legally operate in other freezones or the mainland in 2026?

Answer:
The short answer is: Yes, but the "how" has changed completely in the last 12 months.
If you asked this in 2023, the answer was a hard "No" without a separate license. In 2026, the UAE has moved toward a "Unified Economic Space." Here is the current regulatory framework you need to navigate to avoid fines and maximize your tax benefits.
1. The "Dual Licensing" Revolution
Most major freezones (DMCC, DIFC, ADGM, and JAFZA) now have reciprocal agreements. Under the Dubai Unified License (DUL) initiative, a company registered in one zone can often obtain a "Permit to Operate" in another without the 100% setup cost of a new entity.
2. Working in the Mainland (The "Branch" Model)
The biggest shift in 2026 is Dubai Executive Council Resolution No. (11) of 2025.
• No Physical Office Required: You can now open a "Mainland Branch" of your Freezone company.
• The Cost: It costs roughly AED 10,000 annually.
• The Benefit: You keep your Freezone HQ and residency, but you gain a legal "Mainland" status to sign contracts with government entities or local Dubai mainland businesses.
3. The Corporate Tax Trap (Warning)
This is where most entrepreneurs get it wrong in 2026. While you can legally work across zones, your Tax Status changes depending on who you invoice:
• Freezone to Freezone (Qualifying): You likely still enjoy the 0% Corporate Tax rate.
• Freezone to Mainland: This income is generally subject to the 9% Corporate Tax (if above the AED 375,000 threshold).
Pro-Tip: You must maintain segmented accounting. If you mix your "Qualifying" and "Non-Qualifying" income without a clear audit trail, you risk the FTA (Federal Tax Authority) taxing your entire global revenue at 9%.
4. Physical Goods vs. Services
• Services: (Consultancy, IT, Marketing) have the most flexibility. You can work across zones with a simple permit.
• Trading/Logistics: If you move physical goods from one freezone to another, you still need to deal with Customs. Unless you are in a bonded "logistics corridor" (like the one between JAFZA and DWC), you may still face the 5% import duty when goods enter the "Mainland" between two zones.
Summary Checklist for 2026:

1. Check the DUL: Does your freezone offer the Dubai Unified License?
2. Calculate the Revenue Split: Will your mainland work exceed 5% of your total revenue? (The De Minimis rule).
3. Apply for the Permit: Don't just "show up" at a client's office. Get the AED 5,000 temporary permit or the AED 10,000 branch license first. The UAE is now one of the most flexible places to scale a business, but the compliance burden has shifted from "Can I do it?" to "Am I documenting it correctly?"