On 22 July 2025, the Dubai Free Zones Council (DFZC) launched the One Freezone Passport initiative. This reform allows a company licensed in one Dubai free zone to operate in other participating free zones under the same licence, without the need for multiple incorporations. It is one of the most significant regulatory changes in years, introduced as part of Dubai’s Economic Agenda D33, which aims to double the city’s GDP by 2033.
What The One Freezone Passport Offers In Practice
The One Freezone Passport creates a streamlined path for businesses that need facilities in more than one zone. Companies apply through their primary free zone to obtain a Non-Objection Certificate (NOC), which is valid for 60 days, and then submit this alongside a tenancy contract in the secondary free zone. The business remains a single legal entity, with its existing trade licence recognised across multiple zones.
Expansion can take the form of either a branch, where the company sets up a secondary office, warehouse or plot, or a more limited permit, often used for storage or warehousing. Crucially, activities in the secondary zone must be identical to those listed on the primary licence, and only physical premises are accepted. Flexi-desks and virtual offices are not eligible.
Who Is Excluded And What To Watch Out For
Not every sector qualifies. Retail trading, regulated financial institutions and Designated Non-Financial Businesses and Professions such as real estate brokers and precious metals traders are currently excluded.
Ownership and governance must remain consistent across zones. If the shareholders, directors or managers differ from the original licence, the company cannot expand under the Passport. Likewise, any attempt to add new activities in the secondary zone will be rejected. The scheme is designed to make geographical expansion easier, not to broaden a company’s business scope.
Legal, Tax And Operational Implications
Corporate Tax And VAT
The One Freezone Passport simplifies licensing but does not alter federal tax law. Free zone companies remain subject to the UAE’s 9 percent corporate tax, with 0 percent applying to qualifying income where the company meets the conditions set out in the law. Expanding into more free zones does not create a new taxpayer. Instead, the company continues to file a single corporate tax return and VAT registration, which can reduce administrative burden.
However, businesses must still test whether income qualifies for the free zone tax incentive. For example, revenue from mainland customers beyond the permitted threshold would still be taxable at the standard rate. VAT and customs obligations also remain, particularly if goods move between zones.
Compliance And Governance
All federal requirements continue unchanged. Companies must comply with the Economic Substance Regulations, Ultimate Beneficial Owner reporting, AML/CFT obligations, and annual audit rules. Free zones now share information more actively, so a change to directors or shareholders in the primary zone will be communicated to secondary zones to maintain consistency.
HR, Visas And Premises
Visa sponsorship remains anchored in the primary free zone. If a company needs to increase headcount, this must be done through the primary zone, even if the employees work at the secondary site. In some cases, a branch licence in the secondary zone may allow for a visa quota, but permits generally do not.
Secondary premises must always be a proper office, warehouse or land plot. Virtual offices, co-working packages and flexi desks are not accepted under the Passport. This ensures that companies expanding across zones maintain real physical substance.
Early Results And Case Example
Luxury brand Louis Vuitton was the first corporate member under the One Freezone Passport; it expanded from its warehouse in JAFZA to its office at One Za’abeel (DWTC Free Zone) in just five days using the new framework. Media reports also estimate that over 30 free zones may be eligible under the scheme, though DFZC’s official list of participating or eligible zones is still being finalised.
DUQE Free Zone: Why It Is A Strong Launch-Pad
DUQE Free Zone is based on the historic Queen Elizabeth 2 ship at Port Rashid, offering a central, prestigious address with direct access to Dubai’s business districts. For startups and SMEs, DUQE provides founder-friendly licensing, access to flexible facilities, and a supportive ecosystem.
As a DFZC member, DUQE acts as a primary licensing authority under the Passport. This means that a company incorporated at DUQE can keep its main base there and then expand into other free zones when needed. For example, a tech startup could set up at DUQE and later lease a warehouse in Jebel Ali Free Zone for fulfilment, all under the same licence.
DUQE simplifies the process by issuing the NOC, guiding founders on activity alignment, and ensuring documentation meets both primary and secondary zone requirements. For entrepreneurs, this makes DUQE a strategic starting point, combining credibility with scalability.
Application Process, Costs And Timelines
The process is straightforward:
- Apply through your primary free zone, submitting your current licence, governance details, and an outline of the secondary facility. The primary zone issues a standardised NOC valid for 60 days.
- Apply to the secondary free zone with the NOC, tenancy contract, and supporting documents. Activities must match your primary licence.
- On approval, finalise the lease and complete any fit-out or access permits required.
Processing can be fast. Well-prepared cases have been completed in under a week. More typically, businesses should expect one to two weeks depending on facility readiness and compliance checks. Costs vary depending on the facility size and secondary zone, but the consolidation of licences reduces duplicate renewal fees.
Mainland Access And How It Overlaps
The One Freezone Passport only applies between Dubai free zones. It does not grant the right to trade in mainland Dubai. For that, companies must obtain a branch licence or permit from the Dubai Department of Economy and Tourism under Executive Council Resolution No. 11 of 2025. Mainland activity must always be accounted for separately, with its own tax and regulatory obligations.
Who Benefits Most
E-commerce companies gain the ability to split logistics and corporate functions under one entity, reducing costs and streamlining supply chains. Holding and investment firms benefit from simplified governance when acquiring assets across zones. Consultancies and professional services can maintain small offices in multiple client hubs without fragmenting their business into separate licences.
Where companies need visa quotas in the secondary zone, or where activities fall into excluded sectors such as retail or regulated finance, a traditional branch or separate licence may still be more appropriate.
Risks And Limitations
The scheme is not a shortcut to new business activities or an alternative to mainland licensing. Applications will be rejected if activities do not align or if premises requirements are not met. Relying on a secondary zone as a visa source is another common pitfall. Businesses should plan carefully, making sure their growth strategy aligns with the actual scope of the Passport.
Start With DUQE, Scale Across Dubai
The One Freezone Passport represents a major step forward in making Dubai’s free zones function as a connected ecosystem. It reduces costs, shortens timelines, and lets companies scale across multiple hubs without creating new entities each time.
For founders, the choice of primary free zone matters. DUQE offers a central location, startup-friendly environment, and the ability to expand outward under the Passport as your business grows. Start at DUQE and you can build a multi-zone presence across Dubai while keeping one clean, consolidated licence. Contact us today for further information.
FAQs
Can I Hire New Staff Under The Secondary Free Zone Licence?
Not usually. Visa sponsorship remains with the primary free zone. In some cases a branch may allow additional visas, but permits generally do not.
Is A Flexi-Desk Acceptable In The Secondary Zone?
No. Only physical premises such as offices, warehouses or land leases qualify under the Passport.
Does The Passport Grant Me Tax Exemptions?
No. Corporate tax rules remain the same. You must meet the qualifying free zone criteria to access the 0 percent rate.
How Long Does Expansion Take?
Well-prepared cases can be completed in five business days. Allow one to two weeks if facilities require additional approvals or fit-out.
What If My Activities Are Not Eligible?
Excluded sectors like retail, regulated finance or DNFBPs cannot use the Passport. In those cases a separate licence or traditional branch is required.