Dubai has always been a magnet for global entrepreneurs thanks to its tax advantages, strategic location, and world-class infrastructure. Traditionally, however, businesses set up in free zones faced a major limitation: they could not directly operate in Dubai’s mainland without establishing a separate entity or working through a local distributor.
That barrier has now been removed. With the new Dubai Department of Economy and Tourism (DET) permit, free zone companies can legally expand into mainland Dubai without complex restructuring. In this guide, we’ll break down everything you need to know — benefits, eligibility, steps, costs, compliance, and FAQs — to decide if this is the right move for your business.
Why This Matters: Dubai’s New Rules for Free Zone Companies
In 2025, Dubai introduced Executive Council Resolution No. 11 of 2025, allowing free zone businesses to establish branches or apply for activity permits in mainland Dubai.
This change aligns with the emirate’s ambitious D33 Economic Agenda, which aims to double the size of Dubai’s economy by 2033 and position it among the world’s top three economic hubs. For business owners, it’s a clear signal that Dubai is opening doors for easier expansion, greater flexibility, and broader market access.
Benefits of Mainland Expansion for Free Zone Companies
The DET permit gives free zone entities the chance to test and grow in mainland Dubai without losing their free zone advantages.
- Direct Market Access – Work with mainland clients directly, no distributors required.
- Cost Efficiency – Avoid setting up a full mainland entity while still accessing the market.
- Operational Continuity – Keep your free zone structure intact while adding mainland activities.
- Workforce Flexibility – Deploy existing free zone employees for mainland projects.
- Investor Confidence – A government-backed framework that reduces risk and builds trust.
Who Can Apply? DET Permit Eligibility
Not every business activity qualifies. The DET permit mainly supports service-based and knowledge-driven industries, such as:
- Consultancy (IT, management, marketing, legal)
- Creative and design services
- Technology and software development
- Training, education, and professional development
Excluded: Commercial trading, retail, and financial institutions under DIFC. Companies engaged in these activities must still establish a full mainland company.
DET Permit vs. Free Zone vs. Mainland Company
| Feature | Free Zone Only | DET Permit | Mainland Company |
|---|---|---|---|
| Ownership | 100% foreign | 100% foreign | 100% foreign (since 2021) |
| Market Access | Free zone only | Mainland (specific services) | Full mainland access |
| Costs | Low | Moderate | Higher |
| Taxes | Free zone benefits | Mainland revenue taxed | Corporate tax applies |
| Workforce Deployment | Free zone only | Staff can work on mainland projects | Full flexibility |
This comparison shows the DET permit is a bridge option — ideal for testing the mainland market without the overhead of full incorporation.
Step-by-Step: How to Apply for a DET Mainland Activity Permit
Expanding into Dubai mainland is straightforward if you follow the right steps:
Step 1 – Check Eligibility
Confirm your business activity is included in the DET-approved list.
Step 2 – Apply for the DET Permit or Branch Licence
Submit your application through the Dubai Department of Economy and Tourism.
Step 3 – Secure Additional Approvals
Certain industries (e.g., healthcare, education, fintech) may require regulatory clearance.
Step 4 – Lease Office Space (if required)
Some activities require a physical office registered with Ejari.
Step 5 – Register for Tax
If your mainland revenue exceeds the VAT threshold, register with the Federal Tax Authority.
Step 6 – Employee Visas & Labour Cards
Apply for work permits under the Ministry of Human Resources and Emiratisation (MOHRE).
Step 7 – Permit Renewal
Permits are valid for one year and must be renewed to continue operations.
Costs & Timelines: What to Expect
While exact fees depend on your business activity and approvals required, here’s a general overview:
- Application fee: AED 5,000 – AED 10,000
- Renewal fee: AED 3,000 – AED 7,000 annually
- Processing time: 2–6 weeks on average
By comparison, setting up a full mainland company typically costs significantly more and requires additional sponsor agreements.
Compliance & Tax Considerations
Expanding into the mainland comes with additional responsibilities. Free zone companies must:
- Maintain separate financial records for mainland operations.
- Comply with UAE corporate tax laws for mainland revenue.
- Be prepared for DET audits and inspections.
- Ensure No Objection Certificates (NOCs) for staff deployed on mainland projects.
Tip: Work with a tax consultant to avoid unexpected liabilities and ensure ongoing compliance.
Case Study: How a Tech Firm Expanded Seamlessly
A DMCC-based software company wanted to serve government clients in Dubai. Instead of forming a new mainland company, it applied for a DET permit to extend its services. Within 30 days, the company:
- Obtained its DET permit.
- Assigned three staff members to mainland projects.
- Signed contracts worth AED 1.2M in the first quarter.
This shows how the DET permit provides a low-risk, high-reward path to growth.
FAQs – Dubai Free Zone to Mainland Expansion
Q: Can I sell goods in mainland Dubai with a DET permit?
No. Only service-based activities are allowed. Trading requires a mainland entity.
Q: Do I lose free zone benefits if I expand into mainland?
No, you maintain your free zone structure and advantages.
Q: How long is the DET permit valid?
One year, renewable annually.
Q: Does corporate tax apply?
Yes, income from mainland operations is subject to UAE corporate tax.
Q: Can I use my free zone staff?
Yes, with proper approvals and NOCs.
Final Thoughts – Is the DET Permit Right for You?
The Dubai free zone companies mainland permit is a milestone in Dubai’s business landscape. It allows entrepreneurs to combine the benefits of free zones with direct mainland access, opening new opportunities for growth.
If your business is service-based and ready to scale, this permit may be the fastest, most cost-effective way to expand.
👉 Next Step: Speak with our Dubai business setup consultants today. We’ll assess your eligibility, guide you through the application, and ensure you remain fully compliant while unlocking new growth potential.
Learn More:
Mainland Business Setup in Dubai Made Easy with Business & Beyond
LLC vs Free Zone: Which Dubai Option Suits You Best?
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