Can I Use a Sharjah Licence in Dubai? Office, Staff and Branch Rules

Mainland economic licences are issued by each emirate's economic department: SEDD in Sharjah, the Department of Economic Development in Ajman and RAK, and the Department of Economy and Tourism (DET) in Dubai. In Dubai, Law No. 13 of 2011 requires anyone carrying on an economic activity in the emirate to hold a licence. A Dubai licence must be tied to premises with a registered tenancy. Under Article 29(a), a licensing violation carries a fine of AED 100 to AED 100,000, doubled on repetition within a year and capped at AED 100,000.

A Sharjah, Ajman or RAK licence does not list Dubai premises. If your company's real office, staff base or shop is in Dubai, Dubai can treat that as unlicensed activity. Free zone licences are narrower still, because they cover activity inside the zone and, under each zone's rules, business outside the UAE or with other free zone companies.

The line between visiting Dubai clients and operating in Dubai is not set by one published test. Meetings, deliveries under a contract or occasional site work are different from a permanent desk and team. If you are unsure which side you are on, put the question to DET in writing.

The usual fix is a DET branch licence for your Sharjah, Ajman or RAK mainland company. The branch is not a separate company. It trades under the parent's name and the parent is liable for it. Expect DET to ask for:

1. the parent licence and constitutional documents
2. a shareholder or board resolution to open the branch
3. appointment of a branch manager
4. Dubai premises with a registered tenancy (Ejari)
5. activities that DET will licence in Dubai

Fees depend on the activities and premises. DET prices per activity and does not publish one branch fee, so ask for a quote. The alternative is a new Dubai company, which costs more to run but separates liability.

Other emirates set their own rules. Abu Dhabi, for example, announced in February 2025 that firms licensed in other emirates can open an Abu Dhabi branch through TAMM without their own premises for the first year, for 1,200 listed activities. We found no equivalent Dubai-wide exemption for mainland companies from other emirates; check with DET. Each emirate's economic department sets its own branch process.

Many people asking this question hold a low-cost free zone licence from SPC, SHAMS, Ajman Free Zone or RAKEZ. Dubai's Executive Council Resolution No. 11 of 2025 created three routes into mainland Dubai: a branch licence within Dubai, a branch licence operating out of the free zone (AED 10,000 a year) and a temporary permit for up to six months (AED 5,000). Its scope is establishments in free zones established in Dubai, and DIFC financial firms are excluded.

On the published text, a SHAMS or RAKEZ company cannot use those Dubai routes. Its options are a licensed presence in Dubai, usually a separate mainland company or a branch structure DET will accept, or keeping the team inside its own zone. Ask DET and your free zone authority before committing, because both must approve.

A free zone company that sets up a mainland presence also changes its corporate tax position, as explained below.

Unlicensed Dubai operations are rarely found through the licence itself. They tend to show up through people and paperwork:

• Visas and work permits are sponsored by the licensed entity and recorded against its establishment card in the issuing emirate. Staff who work every day at an unlicensed Dubai address are working somewhere their records do not show.
• WPS payroll runs through the licensed company, so salary files tie employees to that entity. That is fine for compliance, but it shows clearly which company employs the Dubai team.
• Inspections by economic and labour authorities can lead to fines and service blocks. A block can stop visa renewals until it is resolved.
• Banks and landlords ask for a licence matching the premises. A Dubai lease in the name of a Sharjah company without a Dubai branch is a red flag at KYC reviews.

If the Dubai office is genuine and permanent, the cost of a branch licence is usually small next to the cost of a block on the company's visa file.

For a mainland company, a Dubai branch changes very little for tax. The FTA states that branches are not registered separately for VAT: all branches sit under the company's single TRN and file one return. For corporate tax, the branch is part of the same taxable person, so there is one registration, one return and one AED 375,000 band, with 9% above it.

For a free zone company the effect can be large. A mainland branch is a domestic permanent establishment, and income attributable to it is carved out of Qualifying Income and taxed under the standard regime. See mainland branch of a free zone company. Running Dubai operations without a licence does not avoid this. If the activity happens on the mainland, the risk to the company's Qualifying Free Zone Person status remains.

If the business already runs from Dubai on a Sharjah, Ajman or RAK licence, regularise it in order:

1. List what happens in Dubai: who works there, how often, from what address, and which contracts are performed there.
2. Ask DET which licence covers that activity: a branch of the existing company, a new company, or, for Dubai free zone companies only, a Resolution 11 permit.
3. Sign or convert the Dubai lease in the name the licence will carry and register it on Ejari.
4. Move work permits and establishment card records so that staff are attached to the licence covering their real workplace.
5. Update the FTA registration details in EmaraTax, along with bank KYC and contract templates.

Keep evidence of each step. If an inspection happens during the transition, a dated application file shows good faith.