In one of Dubai’s boldest and most innovative decisions, the emirate has introduced a new regulation granting free zone companies a long-awaited opportunity: the ability to obtain a permit that allows them to operate within the mainland.
This strategic shift not only opens new doors for business but also creates a more flexible and prosperous economic landscape, allowing companies to expand without complex restrictions or high costs.
Today, moving from a free zone to the mainland market is no longer a distant dream or a complicated step.
It has become a clear and accessible pathway, enabling entrepreneurs and investors to enter wider markets, achieve faster growth, and benefit from a vibrant economic environment globally known for fostering success.
This promising decision reflects Dubai’s vision of enhancing fluidity between various business sectors and marks the beginning of a new era filled with opportunities worth exploring and understanding in depth.
What is the new Mainland Business Activity Permit in Dubai?
The Mainland Business Activity Permit is a newly introduced authorization that allows free zone companies to operate within the mainland without the need to establish a branch or a new legal entity.
It enables companies to offer their services or conduct legally permitted unregulated activities in the local market, provided they adhere to specific conditions such as maintaining separate financial records and following operational guidelines.
This permit was launched as a strategic initiative to simplify expansion and increase business flexibility between free zones and Dubai’s internal market.
Who is eligible for the permit?
Under the new Dubai regulation, any company registered in one of the emirate’s free zones may apply for a permit that allows it to operate in Dubai—provided its activities fall under the category of unregulated activities.
The company must also be active and compliant within its free zone and capable of providing the financial and administrative documents required to prove its readiness to operate outside its original jurisdiction.
What is the difference between mainland and free zone permits?
The main difference is that mainland companies require a permit that allows them to operate directly in Dubai’s local market without geographical restrictions. In contrast, free zone companies are normally restricted to conducting activities within the boundaries of the free zone.
The new decision, however, grants free zone companies the ability to expand into the mainland through a special permit that governs and regulates this expansion.
What types of activities are allowed under this permit?
Under the new permit, companies can engage in a wide range of permitted unregulated activities in Dubai, such as:
- Consulting services
- Technology and IT services
- Design
- Marketing
- Professional services
The purpose of this permit is to empower companies to offer their services directly in the local market without having to establish an additional legal entity.
What is the cost and duration of the permit?
The permit typically costs around AED 5,000 and is initially issued for a period known as the permit duration, which is six months, renewable according to conditions set by Dubai’s relevant authorities.
Can the permit be renewed after it expires?
Yes, the permit can be renewed upon expiry. However, renewal is subject to several conditions reviewed by the responsible authority before approval.
Authorities generally verify that the company has complied with all guidelines during the initial permit period, such as:
- Maintaining separate financial records
- Avoiding activities outside the allowed scope
- Settling all due fees or charges
The company may also be required to submit updates on its activities during the permit period and confirm that its operations still align with the approved activity type. The renewal process itself is relatively simple and is often completed electronically, though final approval depends on full regulatory compliance.
What is the corporate tax rate on revenues generated from mainland activities?
Corporate tax is applied at 9% on the profits a company earns from activities conducted within the mainland.
The company must maintain clear financial separation between mainland operational revenues and free zone revenues. Only the profit associated with mainland activities is subject to tax. This financial separation is essential to ensure accurate tax calculation and regulatory compliance in Dubai.
How can a company apply for the permit and who issues it?
Applications for the permit are submitted through the Invest in Dubai platform, the official portal used to file applications, upload required documents, and track request status entirely online.
The process includes:
- Selecting the activity
- Uploading required documents
- Paying the fees
- Receiving approval
The authority responsible for issuing the permit is the Dubai Department of Economy and Tourism (DET), which reviews the application, verifies compliance, and ensures that the activity and operational structure meet regulatory standards before issuing final approval.
This digital process makes obtaining the permit fast, straightforward, and transparent.
At HFA Firm, we make the permit issuance process faster and simpler than ever.
We deliver license issuance within just a few days—no long waits, no multiple intermediaries—allowing your company to begin its mainland expansion confidently and seamlessly.
Can a free zone company retain its advantages after expanding into the mainland?
When expanding into the mainland through the new permit, the company retains most of the benefits it had within the free zone, including:
- 100% foreign ownership
- Business management flexibility
- Maintaining its original legal structure
However, additional compliance requirements apply, such as:
- Keeping separate financial records for mainland activities
- Meeting local regulatory obligations
- Paying corporate tax on profits derived from mainland operations
In summary, this expansion allows companies to benefit from Dubai’s wider market while keeping their free zone advantages along with new obligations to ensure full compliance.
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