Who can apply for the Free Zone Mainland Operating Permit?

The Free Zone Mainland Operating Permit is available to all active Free Zone companies holding a Dubai Unified License (DUL) and operating in non-regulated sectors such as technology, consultancy, design & creative services, professional services, and trading. Businesses must be registered in a Dubai Free Zone, including DMCC, DAFZA, JAFZA, DSO, or other Free Zones under the TECOM Group and Meydan.

What are the benefits of the Free Zone Mainland Operating Permit?

The key benefits of the Free Zone Mainland Operating Permit include no need for a local sponsor, low-cost entry (AED 5,000 for six months), eligibility for government contracts, and simplified expansion into the mainland through a single online application process without additional licenses or restructuring.

How do I apply for the Free Zone Mainland Operating Permit?

Applying for the Free Zone Mainland Operating Permit is a simple online process. Visit the Invest in Dubai (IID) platform, log in using your Dubai Unified License (DUL) credentials, provide your business information, pay the AED 5,000 fee, and receive the digital permit once processed.

Is there a validity period for the Free Zone Mainland Operating Permit?

Yes, the Free Zone Mainland Operating Permit is valid for six months from the date of issuance. However, businesses have the option to renew the permit for additional six-month terms by paying the same AED 5,000 fee.

Why was the Free Zone Mainland Operating Permit introduced?

The Free Zone Mainland Operating Permit aims to enhance market access for Free Zone companies, increase cross-jurisdictional business activity, provide opportunities for small businesses and startups to explore the mainland market, and allow Free Zone companies to bid for government contracts. It is part of the UAE's efforts to support business growth and attract investment.

How is the Free Zone Mainland Operating Permit different from the previous system?

Previously, Free Zone companies were required to set up a separate legal entity or engage a local partner/sponsor to operate in the mainland, which involved high setup and operational costs, restructuring, and additional licenses. The new permit simplifies this process and makes expansion more affordable and accessible.

How can Filings.ae assist with the Free Zone Mainland Operating Permit?

Filings.ae specializes in helping businesses navigate the complexities of setting up and expanding operations in Dubai. They offer services such as Free Zone Mainland Operating Permit registration, business setup consulting and legal advisory, tax and compliance support, annual permit renewal management, and strategic expansion guidance tailored to individual business needs.

Free Zone Mainland Operating Permit in UAE

Q: Can Free Zone companies use their existing workforce for mainland operations under this permit?

Yes, the new permit allows companies to use their existing workforce for mainland operations without the need to hire additional staff or go through complex visa procedures. This streamlines the expansion process and reduces costs for businesses.

Dubai continues to lead the charge in creating innovative business environments with the introduction of the Free Zone Mainland Operating Permit. This newly launched permit, under Executive Council Resolution No. 11 of 2025, allows Free Zone companies to legally operate in Dubai’s mainland without needing to set up a separate mainland company or hire a local sponsor. This groundbreaking policy change, which comes into effect in October 2025, is set to significantly expand the possibilities for Free Zone businesses, offering them the flexibility to operate and grow within the mainland market.

In this article, we’ll explore everything you need to know about the Free Zone Mainland Operating Permit - its key features, how to apply, and the benefits for businesses operating in Dubai’s Free Zones.

What is the Free Zone Mainland Operating Permit?

The Free Zone Mainland Operating Permit is a new regulation introduced by the Dubai Department of Economy and Tourism (DET) that allows Free Zone companies to operate in the mainland without the need to establish a new mainland entity or engage in complex legal processes. Under this permit, businesses can expand their operations into mainland Dubai while still benefiting from the tax and operational advantages of their Free Zone setup.

The permit applies to businesses in non-regulated sectors, such as:

Technology
Consultancy
Design & Creative Services
Professional Services
Trading

Regulated sectors will be incorporated in future phases of the initiative.

Key Features of the Free Zone Mainland Operating Permit

This new operating permit is designed to offer greater flexibility and cost-efficiency for companies operating within Dubai’s Free Zones. Some of the key benefits of this permit include:

No need for a local sponsor: Free Zone companies can now operate in the mainland without the requirement of a local partner or service agent.
Low-cost entry: The permit costs AED 5,000, with six-month validity and the option to renew at the same fee. This affordable model is ideal for businesses of all sizes, especially SMEs and startups.
Government contract eligibility: Previously, Free Zone companies were unable to bid for government tenders. With this permit, businesses can now legally compete for government contracts, unlocking new opportunities.
Simplified expansion: Companies can expand their business into the mainland through a single online application, eliminating the need for additional licenses or restructuring.

The introduction of this permit is expected to have a significant impact on Dubai’s economy, driving increased cross-jurisdiction business activity and attracting further investment.

Validity, Cost, and Compliance

Validity

The Free Zone Mainland Operating Permit is valid for six months from the date of issuance, with the option to renew for additional six-month terms. This flexible timeframe allows companies to test the mainland market, scale their operations, and make adjustments as needed, without committing to long-term obligations.

Cost

The cost of the permit is AED 5,000 per six-month term, which makes it an accessible option for startups and small businesses. Given the affordability and simplicity of the process, it provides a low-risk opportunity for businesses to test their mainland operations before making larger investments.

Corporate Taxation

Companies using this permit will pay 9% corporate tax on mainland-generated income only. Income derived from Free Zone activities will continue to be subject to the existing tax exemptions enjoyed by Free Zone companies.

To maintain compliance, businesses must maintain separate financial records for their mainland and Free Zone operations, as required by the Federal Tax Authority (FTA).

Staffing Requirements

The new permit allows companies to use their existing workforce for mainland operations. No need to hire additional staff or go through complex visa procedures. This is a major advantage for businesses looking to expand efficiently without incurring unnecessary costs.

Who Can Apply for the Permit?

The Free Zone Mainland Operating Permit is available to all active Free Zone companies holding a Dubai Unified License (DUL). It is available to companies across a range of sectors, including IT, consultancy, trading, design, and professional services.

Businesses must be registered in a Dubai Free Zone such as DMCC, DAFZA, JAFZA, DSO, or other Free Zones under the TECOM Group and Meydan.

How to Apply for the Free Zone Mainland Operating Permit

Applying for the Free Zone Mainland Operating Permit is a simple and straightforward process, entirely managed online. Here’s how to apply:

Visit the Invest in Dubai (IID) platform: Go to the official portal Invest in Dubai (IID).
Login using your Dubai Unified License (DUL) credentials.
Submit your application: Provide your business information, including details about your Free Zone license and the business activity you wish to expand.
Pay the permit fee: AED 5,000 for the six-month term.
Get your permit: Once processed, you will receive the digital permit, allowing you to operate in mainland Dubai.

This online process eliminates the need for manual paperwork, making it quick, transparent, and accessible for businesses of all sizes.

Why Was the Permit Introduced?

The UAE is renowned for its investor-friendly policies, which have been key drivers of the nation’s economic success. The introduction of the Free Zone Mainland Operating Permit is part of the Department of Economy and Tourism's (DET) ongoing effort to support business growth and attract investment.

The key objectives of the new policy include:

Enhancing market access for Free Zone companies: Free Zone companies can now easily access the mainland market, expanding their client base and boosting their growth potential.
Increasing cross-jurisdictional business activity: The government expects to see a 15-20% increase in business activities between Free Zone and Mainland companies in the first year of the permit’s launch.
Providing more opportunities for small businesses and startups to explore the mainland market without the heavy costs and complexity of setting up a new mainland entity.
Bidding for government contracts: Free Zone companies can now compete for government tenders and projects, which were previously reserved for mainland-registered businesses.

The policy shift is expected to benefit over 10,000 active Free Zone companies, creating a more integrated business ecosystem within Dubai.

Old System vs. New Free Zone Mainland Operating Permit

Old System	New System (Free Zone Mainland Operating Permit)
Mainland Access	Limited — required a separate legal entity or local partner
Local Sponsor	Mandatory local sponsor or agent required
Company Setup	Required setting up a new mainland company
Cost of Expansion	High setup and operational costs
Corporate Tax	Separate taxation structure for mainland operations
Eligibility for Government Contracts	Free Zone companies could not bid
Expansion Process	Required restructuring and additional licenses

This new system streamlines the process for businesses, making expansion into the mainland affordable, efficient, and transparent.

Why This Reform is a Game-Changer for Dubai

The introduction of the Free Zone Mainland Operating Permit marks a transformative shift in Dubai’s business landscape. By offering Free Zone companies the freedom to access mainland markets, the UAE is fostering business growth, economic diversification, and job creation in both established and emerging sectors.

This reform is expected to:

Drive investment and attract international businesses to Dubai.
Strengthen Dubai’s global competitiveness as a business hub.
Unlock billions of dollars in government contracts and domestic trade opportunities.

How Filings.ae Can Help Your Business Expand

At Filings.ae, we specialize in helping businesses navigate the complexities of setting up and expanding operations in Dubai. Whether you are looking to apply for the Free Zone Mainland Operating Permit, need compliance assistance, or require strategic business advice, our expert team is here to support your growth in Dubai.

Our Services Include:

Free Zone Mainland Operating Permit registration
Business setup consulting and legal advisory
Tax and compliance support
Annual permit renewal management
Strategic expansion guidance

Take the Next Step with Filings.ae

Ready to take advantage of Dubai’s new Free Zone Mainland Operating Permit? Contact Filings.ae today and expand your business into Dubai’s mainland effortlessly.

We provide tailored solutions for all business types — from startups to multinational corporations. Get in touch with us now and start your Dubai expansion journey with confidence!