Dubai has launched a new free zone mainland operating permit. It is a new initiative allowing companies that are registered in free zones to legally operate even in Dubai’s mainland. Let’s understand all about this new mainland free zone operating permit through this article.
What’s changing as per New Mainland Free Zone Operating Permit?
Earlier, as you might already know, the Free Zone companies were limited to operating internationally or inter-free zone activities. In addition, they were required to get additional licenses to enter the mainland and do business operations there.
Now, using the new mainland free zone operating permit removes this restriction. As a result, it provides a structured and compliant way for free zone companies to enter the domestic market of UAE.
Impact of the new mainland-free zone operating permit
According to the Department of Economy and Tourism (DET), this move will make it much simpler for businesses to function across both jurisdictions free zones and the mainland. It creates cost-effective and low-risk opportunities for companies to participate in local trading and government contracts. This reform supports both small and large enterprises and fosters a good business environment for UAE Company Registration.
Who is eligible for a new mainland free zone operating permit?
Initially, the permit will apply to non-regulated industries such as technology, consulting, design, trading, and other professional services. These sectors typically do not require special regulatory approvals, which allows the system to start smoothly. The DET has also indicated plans to extend the permit to regulated industries in future phases, expanding its benefits further.
What is the validity and cost of a new mainland free zone operating permit?
The Free Zone Mainland Operating Permit will be valid for six months and will cost AED 5,000. Companies will have an option to renew for the same amount every six months. This short renewal cycle offers flexibility to businesses, allowing them to test the mainland market before committing to a long-term license.
What would be the taxation and record-keeping requirements under mainland free zone operating permit?
As per the taxation and record-keeping requirements under mainland free zone operating permit will make mainland operations fall under 9% corporate tax. Furthermore, it is important to maintain separate financial records for mainland operations to meet federal tax authority standards. However, companies can use their existing staff for mainland work and they won’t need to hire new employees or relocate offices, reducing additional costs and administrative work.
How to apply for a New Mainland Free Zone Operating Permit?
Eligible free zone companies holding a Dubai Unified License (DUL) can easily apply for the permit online through the Invest in Dubai (IID) platform. The process is fully online and E-Startup experts can assist you in getting it fast and Company registration in UAE also.
If you need further assistance or have any doubts, our experts are here to help you. Call us: 8881-069-069.
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