For years, free zone entities in Dubai enjoyed significant advantages yet faced operational constraints when expanding into the mainland. For example, Trading licenses need to partner with local distributors in mainland or an agent if they want to access mainland market. Because of this limitation, freezone companies are looking for other ways such as establishing branches in the mainland or engaging with a local sponsor, to help access the mainland operations.
With that, Dubai Business Registration and Licensing Corporation (DBLC), part of the Dubai Department of Economy and Tourism (DET), in partnership with the Dubai Freezone Council, Has brought to market the Freezone Mainland Operating Permit.
Here’s what you need to know about the Free Zone Mainland Operating Permit:
Under Dubai Executive Council Decision No. 11 of 2025, eligible free zone companies can apply for a Free Zone Mainland Operating Permit, allowing them to operate in the Dubai Mainland without setting up a separate entity.
Essential Details of Freezone Mainland Operating Permit:
Eligible License Activities
It covers non-regulated license activities such as technology, consultancy, design, professional services, and trading. There are plans to extend this permit to regulated activities in the future.
Permit Fee and Validity
The permit is valid for six months with a fee of AED 5,000 and is renewable every six months at the same cost.
Corporate Tax Requirements
Free zone companies engaging in mainland activities will be subject to 9% corporate tax on mainland-derived income and are required to maintain separate financial records, in line with Federal Tax Authority (FTA) regulations. This promotes regulatory harmony and transparency.
Workforce Efficiency Management
Business owners availing of this permit may use their existing staff for mainland operations without the need to recruit new employees.
Benefits of this New Framework
- It unifies licenses under one platform through the Dubai Unified License (DUL), allowing eligible free zone companies to apply digitally.
- It eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading, secure government contracts, and foster growth for small enterprises and multinational companies alike.
- As stated by Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), the initiative supports Dubai’s vision of becoming the most seamless, business-ready city in the world.
- It reflects the collaborative efforts of government authorities and free zone stakeholders in simplifying the path for Dubai investors.
- This move supports the development of a world-class business ecosystem aligned with Dubai’s long-term economic vision.
Why this Shift Matters in 2026?
As per Dr. Juma Al Matrooshi, Assistant Secretary General at Dubai Free Zone Council, The launch of the Free Zone Mainland Operating Permit for companies licensed in freezones, supports a world class business ecosystem, that Dubai Offers to the world.
Because of the intensifying competition for foreign direct investments, jurisdictions are increasingly leaning on integrated , digital first regulatory systems .
Who should Consider This Permit?
- Innovation-led tech firms seeking mainland clients
- Advisory firms targeting government clients/contracts
- Cross-border trading enterprises exploring domestic distribution Channels
- Creative design and consulting firms expanding their customer Base
More about DUL (Dubai Unified License)
WHAT IS DUL?
The Dubai Unified License (DUL) is a government-backed digital initiative that provides a single, unified source of company information across Dubai’s licensing authorities.
In practical terms, it creates one verified digital identity for businesses operating in Dubai accessible to relevant government entities, financial institutions, suppliers, and service providers. The system was introduced to streamline regulatory processes and reduce duplication of documentation across different jurisdictions.
Benefits:
- Centralized digital data exchange that makes it easier for companies and service providers to share information, reducing paperwork and speeding up transactions.
- Companies can obtain Non-Objection Certificates (NOCs) and permits more efficiently.
- It facilitates smoother bank account opening processes, as DUL provides access to unified, audited, and standardized company data trusted by government authorities.
Conclusion
The Freezone Mainland Operating Permit makes it easier for free zone companies to expand into the Dubai mainland without setting up a new company. It reduces costs, simplifies processes, and helps businesses grow faster. Overall, it supports Dubai’s goal of becoming a more business-friendly and flexible market.
FAQs
What is the Freezone Mainland Operating permit?
A freezone operating permit allows companies to operate in the Dubai Mainland without setting up a separate entity.
What are the Eligible License Activities that could have a Freezone Mainland Operating permit?
It covers non-regulated license activities such as technology, consultancy, design, professional services, and trading. There are plans to extend this permit to regulated activities in the future.
How much is the Permit Fee and Renewal costs?
The permit fee is AED 5,000 and the renewal costs is also AED 5,000
What is the validity period of the permit?
The permit is valid for six months and is renewable every six months at the same cost.
What are the Corporate Tax Requirements for companies engaging in mainland activities?
Free zone companies engaging in mainland activities will be subject to 9% corporate tax on mainland-derived income
Do the companies need to maintain separate financial records?
Yes, it is required to maintain separate financial records, in line with Federal Tax Authority (FTA) regulations.
