Dubai Launches New Mainland Operating Permit for Free Zone Companies

What the Free Zone Mainland Operating Permit does

Dubai Business Registration and Licensing Corporation, part of the Department of Economy and Tourism, launched the permit with the Dubai Free Zone Council under Dubai Executive Council Decision No. 11 of 2025. It creates a structured route for eligible Dubai free-zone companies to carry out approved mainland activities without immediately establishing a separate mainland company.

The initial framework covers specified non-regulated activities such as technology, consultancy, design, professional services and trading. Eligibility and activity approval must be confirmed for the company’s own licence; the announcement does not give every free-zone company an unrestricted right to conduct every mainland activity.

Eligibility, application and cost

• Hold a valid Dubai free-zone licence and a Dubai Unified Licence.
• Confirm that the intended mainland activity falls within the current permit scope and any sector approval.
• Apply digitally through the Invest in Dubai platform using the required company and activity information.
• The announced permit period is six months at AED 5,000, renewable for the same period and fee; verify the live portal before applying.
• Keep the permit, invoices, contracts and operational records consistent with the activity actually approved.

Corporate tax and separate accounting records

The official launch announcement states that revenue from mainland activity under the permit is subject to 9% Corporate tax and that separate financial records must be maintained. The company should therefore create reliable ledger dimensions, cost-centre or branch reporting that identifies mainland revenue, direct costs, shared expenses, assets, receivables and liabilities.

That statement should be applied together with the UAE Corporate tax Law and the current Free Zone rules. A permit does not by itself determine the treatment of every receipt, preserve Qualifying Free Zone Person status or resolve transfer pricing between business segments. The effect depends on the company, activity, customer, transaction and applicable tax period.

Operational checks before applying

Review contracts, invoicing, customer location, customs, VAT, employee deployment, insurance, banking and sector approvals. Existing staff may be used under the announced framework, but employment arrangements and any regulated-profession requirements should still be checked for the actual activity.

A simple implementation plan

• Map the proposed mainland activity and expected customers.
• Confirm permit eligibility and obtain written approval through the official platform.
• Configure separate accounting and tax-reporting dimensions before the first invoice.
• Update contracts, invoice wording, internal approvals and document retention.
• Review the results before renewal and reassess whether a permanent structure is more suitable.

How SAIF Chartered Accountants can help

SAIF Chartered Accountants can assess the accounting, Corporate tax, VAT, transfer pricing and control implications of proposed mainland activity, then help configure records that support both management decisions and future filings.