Introduction to the Free Zone Mainland Operating Permit
Dubai has introduced the Free Zone Mainland Operating Permit to enable free zone companies to operate in mainland Dubai through a structured permit system. This move facilitates cross-border operations, opens up low-cost and low-risk opportunities for companies to participate in domestic trade and secure government contracts, and promotes the growth of both small businesses and multinational corporations.
Benefits of the Permit
The new authorization will cover unregulated activities including technology, consulting, design, professional services, and trading, with plans to expand it to regulated sectors. The mainland free zone operating permit is valid for six months and costs Dh5,000. It can be renewed every six months for the same fee. Free zone companies operating on the mainland are subject to a corporate income tax of 9% on related revenues and are required to maintain separate financial records in accordance with Federal Tax Authority (FTA) requirements to promote transparency and regulatory harmony.
Expected Outcomes
By linking free zone and mainland operations, the initiative is expected to increase cross-border activity (in Dubai) by 15 to 20 percent in the first year, benefiting over 10,000 active free zone firms and enabling companies to expand into local trade, integrate into domestic supply chains, and gain access to government tenders and contracts worth billions per year – opportunities previously reserved for mainland licensed companies. This initiative is making it easier to do business while opening up new growth opportunities, from domestic trade to government tenders.
Application Process
Eligible free zone companies with a Dubai Unified License (DUL) can apply digitally via the Invest in Dubai (IID) platform. The process is entirely online, ensuring efficiency for SMEs, start-ups, and incorporation agents seeking access to the mainland. Companies availing of this authorization can utilize their existing staff in mainland operations without the need to hire new employees. Further details can be found on the Invest in Dubai website.
