The UAE has changed its business laws to make life easier for free zone companies. The new rules now allow these companies to work in the mainland without closing their businesses. This step removes many old problems and helps companies grow faster across the country.
Earlier, free zone companies faced a tough choice. To work in the mainland, they had to shut down their existing company. They lost their business history, contracts, and records. Many companies avoided expansion because of this risk. The new UAE business law has now fixed this issue.
Under the new law, free zone companies can move their registration to the mainland or open mainland branches. They do not need to liquidate or start again. The company keeps its name, contracts, and legal identity. This change helps old and trusted businesses expand without fear or loss.
The law also allows free zone firms to open branches or representative offices in the mainland. Licensing authorities now approve this directly. This update helps technology firms, consultants, service providers, and holding companies reach more customers inside the UAE. Mainland operations now become simple and clear.
Officials expect these changes to increase company registrations by 10 to 15% in the first year. The UAE plans to reach two million registered companies by the end of the decade. These reforms support that goal and strengthen the country’s business ecosystem.
Another key change introduces corporate citizenship for companies. All businesses registered in the UAE now receive legal recognition as Emirati companies. This status improves trust in global markets and boosts investor confidence. It also helps UAE companies compete better worldwide.
The law also allows businesses to issue different types of shares. This gives companies more freedom in ownership and funding. Startups and investors benefit from this flexibility. It supports modern investment needs and global business standards.
The UAE has also introduced non-profit commercial companies. These companies do not share profits with owners. Instead, they reinvest earnings into their mission. This model supports sectors like education, healthcare, innovation, and social causes. Authorities plan special rules for these firms to keep them flexible.
These legal updates come during strong economic growth in the UAE. Nearly 250,000 new companies registered in 2025. Non-oil sectors now form a large part of the economy. Tourism also continues to grow.
The new Free Zone Mainland rules reduce costs, save time, and remove confusion. Businesses can now expand smoothly across the UAE. The law sends a clear message that the country welcomes growth, innovation, and global investment.
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