How to switch from a Free Zone License to a Mainland License Without Losing your Bank Account
Freezone to Mainland License Dubai
Planning to switch one free zone to Mainland license Dubai is very much considered among the population as a risk of losing your UAE bank account.
But why? Well, you are right about this worry — there is a high risk of getting bank accounts frozen if you fail to inform in advance about KYC update, trade license and the activity details which might get missed during transition.
The present blog clearly explains whether the risk is real and why it happens and how properly compliant 2025-2026 can be achieved under UAE regulation while switching from free zone to Mainland.
Let’s explore it.
Legal ways to switch from Free zone to Mainland license Dubai
Let’s keep it straight for you. There are three options that can help you move legally from the free zone to Mainland license Dubai.
- Dual/mainland permit under DET authorization: With DET permit your freezone company can easily operate in the mainland in terms of joint or branch oversight permitted through free zone authority.
- Registration under mainland branch from free zone company: You must get your mainland branch registered under Ministry of Economy or DET under same branch license activities and authorized name.
- Incorporation of new mainland entity: Incorporation must consider transfer of contracts and assets to a new mainland LLC or a professional license for operational migration.
Note: Certain financial entities like DIFC regulated financial firms stay outside the framework and thus, it requires separate approval.
Also read about DIFC business setup in Dubai.
Banking continuity with free zone to Mainland license Dubai transition
Bank accounts are based on corporate KYC and structure. You need to keep these documents updated based on the following checklist:
- Formal notification letter: Formal notification letter can provide migration route, new mainland company, expected dates, permit and branch detail keeping transparency with the branch.
- Updated trade license or mainland permit: Mainland permit and updated trade license are essential.
- Shareholder approval or board resolution: Shareholder approval and board resolution authorize signatory changes.
- Updated company documents: Memorandum & Articles branch registration, mainland office, Ejari and commercial contract copies along with free zone NOC are required.
- Emirates ID, Visa and new signatory: Required for signatory changes.
- Tax or substance evidence: These are necessary for demonstration of economic substance and business activity.
- Transitional letters from free zone authority and DET: Joint authority are accepted by banks under 2025 permit.
Why it works: Many UAE Banks permit continues with completion of KYC update. If the bank insists on a new account having all the mainland license documents ready can shorten the process.
It’s your responsibility to inform the bank before your license is going to expire in order to avoid automatic account freezing. This helps in KYC requirement and account reopening under support of the bank policies and UAE business guidance.
Also read about free zone and mainland business setup in the UAE.
Stepwise guidelines for a safe free zone to mainland license Dubai transition
Moving from free zone to Mainland license Dubai required to follow these steps:
- First, get the confirmation of free zone rule along with NOC from the free zone authority.
- Choose pathway as a new mainland company, branch or DET permit after the legal review.
- Reserve the mainland trade name and apply for DET/invest in Dubai portal or Bashr for approvals.
- Secure mainland office under Ejari for banks and DET address proof approval.
- Notify the bank with submission of checklist documents.
- Get one mainland trade license and branch permit with regulatory clearance.
- Update visa quota application and corporate records.
- Register WPS, customs and VAT for payroll changes.
Also read about the VAT system in the Free Zone.
Cost requirement for free zone to Mainland license Dubai transition 2025 to 2026
Along with proper documentation, the right payment order can also support proper transition without budget failure within 2 to 8 weeks.
Here is a quick breakdown.
| Cost components | Est Cost (AED) |
| Legal and consultant fees | 5,000 to 20,000 |
| Mainland trade license (DET) | 7,000 to 30,000 |
| Office lease or Ejari | 15,000+/ year |
| Physical office | 30,000+/year |
| Bank amendment or KYC fees | Varies by bank |
Conclusion
Converting from free zone to Mainland license Dubai in 2025-2026 appears to be more structured with appropriate legal route selection and early KYC package shared with the bank.
Moreover, early coordination with DET, free zone authority and your bank can generate one best move to preserve business continuity and banking relationship. If you are seeking one fair and secure transition from free zone to Mainland license Dubai, this is your time.
Let’s Connect with Us to achieve it now.
FAQs
Q1. Does switching from the free zone to Mainland automatically close my UAE bank account?
No, accounts are only at risk if the banks are not updated with the KYC for new license transitioning.
Q2. Is it true – Transitioning from free zone to Mainland license Dubai can be done without changing the bank account?
Yes, most of the UAE banks allow banking continuity with board resolution, updated signatory and license amendment.
Q3. Is a free zone NOC mandatory for Mainland conversion?
Yes, most of the free zone authorities need an official NOC prior to issuing branch approval.
Q4. Is it necessary for business activity codes to match exactly?
Yes, mismatch of freezone and DET activity code can cause delay of bank compliance review.
Q5. Is it true that DIFC comes under different entities for transition approval?
Yes, regulated financial entities like DIFC need additional approval and it cannot use standard DET conversion routes.
