The UAE Just Erased the Line Between Free Zone and Mainland.
1. Your Two Pathways to Mainland Access
Mainland Operating Permit (Temporary)
Mainland Branch License (Established Presence)
(i). Unlock the Entire UAE Market, Instantly.
(ii). Protect Your Ownership & Slash Costs.
(iii). Move at the Speed of Opportunity.
(iv). Leverage Your Existing Team & Operations.
3. Where You Can Operate: Emirate-by-Emirate
4. The Step-by-Step Application Process
Introducing the Free Zone-Mainland Operating Permit: Your single license for a unified market.
The compromise is over. The 2025 Free Zone-Mainland Operating Permit allows your existing free zone company to operate onshore. No new entity. No local sponsor. Here are the essential details for your next steps.
1. Your Two Pathways to Mainland Access
The Dubai DET provides two primary options. Your choice depends on your immediate business goals.
Mainland Operating Permit (Temporary)
Duration: 6 months, renewable.
Cost: AED 5,000.
Ideal For: Testing market demand, short-term projects, low-risk market entry.
Office: Can use your existing free zone office.
Mainland Branch License (Established Presence)
Duration: 1 year, renewable.
Cost: AED 10,000.
Ideal For: Bidding on government tenders, long-term growth, requiring a formal mainland presence.
Office: Requires separate mainland premises (virtual office often acceptable).
2. The Critical Benefit:
(i). Unlock the Entire UAE Market, Instantly.
Direct Onshore Access: Legally conduct business with any mainland client, from large government entities to local businesses.
Bid on Government Tenders: Qualify for public sector contracts that were previously off-limits without a mainland presence.
Seamless Client Service: Serve customers across the entire emirate without jurisdictional barriers.
(ii). Protect Your Ownership & Slash Costs.
Keep 100% Ownership: Retain full foreign ownership of your company. No local sponsor required.
Zero Entity Duplication: Operate under your existing free zone entity. No need to form and manage a separate, costly mainland LLC.
Minimal Upfront Investment: For an initial cost of AED 5,000, you can secure a 6-month permit and start generating mainland revenue immediately.
(iii). Move at the Speed of Opportunity.
Digital & Fast Process: Apply 100% online via platforms like Dubai's 'Invest in Dubai' with a typical approval time of 3-5 business days.
Agile Market Testing: Use the 6-month permit to validate demand, pursue short-term projects, and pivot quickly without long-term commitment.
First-Mover Advantage: Establish your presence in the onshore market ahead of competitors still navigating the old system.
(iv). Leverage Your Existing Team & Operations.
Use Current Free Zone Visas: Your existing employees are fully authorized to work on mainland projects. No need for new mainland visas or MOHRE work permits.
Operate from Your Free Zone Office: For most service-based activities, you can run your mainland operations directly from your current free zone office.
Simplified Management: Avoid the administrative burden of running two separate legal entities and teams.
3. Where You Can Operate: Emirate-by-Emirate
Dubai: Live now via the Invest in Dubai platform. Applies to most free zones (DMCC, JAFZA, TECOM) but excludes DIFC.
Abu Dhabi: The Dual License system is active through ADDED and the TAMM portal.
Northern Emirates: Sharjah, RAK, and Ajman have launched similar models through their respective DEDs.
Crucial Note: A permit is valid for operations only within the emirate that issues it. A Dubai permit does not allow work in Abu Dhabi.
4. The Step-by-Step Application Process
The process is digital and typically takes 3-5 business days in Dubai.
Step 1: Obtain a NOC. Secure a No Objection Certificate from your free zone authority. This is the mandatory first step.
Step 2: Gather Documents. Prepare your valid Free Zone Trade Licence, MOA, and passport/ID copies of the manager.
Step 3: Select Activities. Choose the mainland activities (typically mirroring your free zone activities, excluding regulated sectors).
Step 4: Submit & Pay. Apply through the official online portal (e.g., Invest in Dubai) and pay the fee (AED 5,000).
5. Financial & Tax Obligations: A Direct Breakdown
Corporate Tax: You will pay 9% corporate tax only on profits generated from your mainland activities. Your qualifying free zone income remains at 0%.
Separate Accounting: You are legally required to maintain separate financial records for your mainland and free zone operations.
VAT: Mandatory registration is required once your total taxable supplies (including mainland sales) exceed AED 375,000 annually. You charge 5% VAT on taxable mainland supplies.
Your Immediate Next Step
For existing businesses operating onshore without a permit: A grace period is in effect to formalize your status. Act now to avoid penalties.
For new market entrants: This is your opportunity to build a competitive edge by being among the first to operate seamlessly across the UAE.
Book your free, 30-minute strategy session. We will provide a tailored action plan to secure your permit, including:
Eligibility & Activity Check: Confirming your free zone and business activities qualify.
Emirate-Specific Guidance: Mapping out the exact process for your location (Dubai, Abu Dhabi, RAK, etc.).
Documentation & Fast-Track Application: Ensuring a swift and error-free submission.
Integrated Tax & Compliance Advice: Optimizing your corporate tax (9% on mainland profits) and VAT position from day one.
Clarification on Visas & Employees: Confirming the seamless use of your existing free zone team.
Click Here to Book Your Free Strategy Session & Get a Custom Action Plan.
The barrier is removed. It's time to expand.
