In a move set to revolutionize the business landscape, Dubai has announced the launch of the Free Zone Mainland Operating Permit. This new system creates a streamlined, structured pathway for companies registered in a Free Zone to conduct business directly within Dubai’s Mainland.
This initiative is a game-changer for businesses seeking growth, offering a cost-effective and low-risk way to expand their operations across jurisdictions.
Bridging the Mainland and Free Zones
Announced by the Dubai Department of Economy and Tourism (DET), the new permit is designed to ease cross-jurisdiction operations. It is expected to:
- Open new avenues for domestic trading.
- Allow access to government contracts and tenders.
- Foster growth for both small enterprises and multinational corporations.
“This move eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading and secure government contracts…” — Dubai’s Department of Economy and Tourism (DET)
Key Details and Benefits
What Activities are Covered? In its initial phase, the permit covers non-regulated activities, including:
- Technology
- Consultancy
- Design
- Professional Services
- Trading (Plans are in place to extend this to regulated sectors in the future.)
Permit Validity and Cost:
- The permit is valid for six months.
- The cost is Dh5,000, renewable for the same fee every six months.
Tax and Compliance:
- Free zone companies engaging in mainland activities will be subject to the 9% corporate tax on related revenues.
- Companies must maintain separate financial records in line with Federal Tax Authority (FTA) requirements.
- Existing staff can be utilized for mainland operations, eliminating the need for new recruitment.
Projected Impact: 10,000 Firms to Benefit
The DET projects that this initiative will boost cross-jurisdictional activity in Dubai by 15–20 per cent in the first year, directly benefiting over 10,000 active free zone firms. Companies will now be able to integrate with domestic supply chains and bid on government contracts worth billions annually—opportunities previously reserved for mainland-licensed entities.
This move solidifies Dubai’s position as a hub for regulatory innovation and reinforces its commitment to progressive, business-friendly policies that attract global investors.
Publish
Source: https://www.khaleejtimes.com/business/dubai-launches-free-zone-mainland-operating-permit
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