Dubai has introduced a new Free Zone Mainland Operating Permit to enable free zone companies to operate within Dubai’s mainland through a structured permitting system. Initially, the permit covers non-regulated activities such as technology, consultancy, design, professional services, and trading, with plans to extend to regulated sectors in the future.
The permit is valid for six months and costs Dh5,000, with renewals available at the same fee every six months. Companies engaging in mainland activities under this permit will be subject to a 9% corporate tax on related revenues and are required to maintain separate financial records in accordance with Federal Tax Authority (FTA) regulations, promoting transparency and regulatory compliance. Additionally, businesses can utilize their existing staff for mainland operations without needing to hire new personnel, according to Dubai’s Department of Economy and Tourism (DET).
The initiative is expected to benefit over 10,000 firms by bridging free zone and mainland operations. Dubai aims to boost cross-jurisdictional activity by approximately 15-20% in the first year, facilitating companies’ expansion into local trading, integration with domestic supply chains, and access to government tenders and contracts worth billions annually—opportunities previously limited to mainland-licensed entities.
Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), stated, “We are enhancing ease of doing business while opening new avenues for growth, from domestic trading to government tenders. This initiative solidifies Dubai’s position as a leader in regulatory innovation and underscores its commitment to fostering entrepreneurship, job creation, and attracting global investors.”
How to Apply
Eligible free zone companies holding a Dubai Unified Licence (DUL) can apply online via the Invest in Dubai (IID) platform. The entire application process is digital, ensuring a smooth experience for SMEs, startups, and incorporation agents seeking mainland access. Dubai’s DET emphasized that “this move simplifies cross-jurisdiction operations, offering cost-effective, low-risk pathways for businesses to engage in domestic trading, secure government contracts, and promote growth for both small enterprises and multinational companies.”
How NEX CONSULTANTS Can Assist with the New Permit
NEX CONSULTANTS is perfectly positioned to guide Free Zone companies through this new process, ensuring a seamless and compliant expansion into the mainland market. Their assistance would cover:
1. Eligibility Assessment & Strategic Advice
Eligibility Check: They will first confirm if your company holds a Dubai Unified Licence (DUL) and if your business activities (e.g., tech, consultancy, trading) are among the currently approved non-regulated sectors.
Cost-Benefit Analysis: They will help you analyze if the potential for new mainland revenue (from local trading, government tenders, etc.) justifies the permit cost (Dh5,000/6 months) and the associated tax obligations.
2. End-to-End Digital Application Management
Platform Navigation: NEX will manage the entire online application process for you via the Invest in Dubai (IID) platform, ensuring all forms are correctly filled out and submitted.
Documentation Handling: They will gather and prepare all necessary documents from your existing Free Zone company to support a smooth application.
3. Corporate Tax & Financial Compliance Advisory
Tax Registration: If not already done, they will assist with your Corporate Tax registration with the Federal Tax Authority (FTA).
Bookkeeping Guidance: A critical service. NEX will advise you on how to set up and maintain separate financial records for your mainland activities as required by the FTA, ensuring full transparency and avoiding compliance issues.
Clarification on Liabilities: They will clarify which revenues are subject to the 9% corporate tax (only those generated from mainland operations under this permit).
4. Ongoing Support & Renewal
Permit Renewal: They will track the 6-month validity period and manage the renewal process (at the same Dh5,000 fee) well in advance to ensure no interruption in your mainland operations.
Regulatory Updates: As Dubai plans to extend this permit to regulated sectors, NEX will keep you informed of new opportunities and changing requirements.
For a Free Zone company, using NEX CONSULTANTS
You avoid the complexity of navigating the new system yourself.
You ensure compliance from day one, especially regarding the critical tax and record-keeping rules.
You save time and reduce risk, allowing you to focus on seizing the new mainland business opportunities (like bidding for government contracts) instead of getting bogged down in paperwork.
This new permit is a game-changer, and NEX CONSULTANTS acts as your expert guide to play and win by these new rules.
