New Initiative by DED Permits Freezone Companies to Operate in the Mainland

by Zaara 21, May 2019

New Initiative by DED Permits Freezone Companies to Operate in the Mainland

As it is already known, there are two main jurisdictions through which one can start a business in the United Arab Emirates (UAE) - free zone and the mainland. Both jurisdictions have their own advantages and disadvantages depending upon the activity and business type. Whilst Mainland Company registered with DED is permitted to carry on business anywhere in the world including the United Arab Emirates (UAE), the Free Zone business entity operation has been restricted in respective Free Zone. But looks like the things are changing slowly.

Things You Must Know About the Initiative

Earlier, as the business grew, a free zone company had an option to expand its business to the mainland. But, they had to consider the option of either wholly restructuring to the mainland or to have a branch in the mainland. And as per the law, a free zone company had to obtain necessary approval from the Department of Economic Development (DED) to expand its business operations to the mainland by applying for setting up a suitable business structure.

Now, there has been a new development under this law. A new initiative has been taken by the Department of Economic Development according to which, all the free zone companies that are operating inside Dubai can apply for a permit to be able to operate their business in Dubai mainland without restructuring or opening a branch. This permit is issued only to the companies operating in Dubai free zone. It must also be noted that the permit is available only for the activities that have been mentioned below. Other activities cannot apply for such a permit.

Permissible Activities for Obtaining the Permit

  • Accounting and Bookkeeping
  • Accounting and Office Machinery Rental
  • Aircraft Cleaning Services
  • Aircraft Upholstery Services
  • Boat Upholstery Services
  • Business Events Management
  • Cargo Loading and Unloading Services
  • Cost Control and Risk Management Services
  • Cyber Security Consultancy
  • Data Entry Services
  • Documents Destroying Storage
  • Electronic Chips Programming
  • Exhibition Organization Management
  • Facilities Management Services
  • Facilities Resource Management Consultancy
  • Feasibilities Study Consultancy
  • Festival Organization Management
  • Financial Instruments Quotation Services
  • Fine Arts Consultancies
  • Health Consultancies
  • Health Food Consultant
  • Health Planning Consultancies
  • Information Technology Consultants
  • Internet Consultancy
  • Logistics Consultancy
  • Management Consultancies
  • Marketing Research and Consultancies
  • Media Studies and Consultancies
  • Network Consultancies
  • Noise Control, Vibration, and Acoustics Consultancy
  • Occupational Safety Training
  • Parliamentary Consultancy
  • Pharmaceutical Consultancies
  • Product Design Services
  • Project Management Services
  • Public Networking Services
  • Quality and Standardization Consultants
  • Radiology Centers Consultancy
  • Science and Technology Consultancy
  • Sourcing and Procurement Consultant
  • Spa and Fitness Clubs Consultant
  • Technical Installation Consultancies

Documents Required for Obtaining the Permit

  • License copy
  • NOC from the owner of the property/building

This new development can be much beneficial to the companies operating in the free zone, who want to expand their business in Dubai mainland without opening a branch, as a branch office in the mainland will increase the annual maintenance cost of the whole structure. So, what are you waiting for? Contact us today- we’d be glad to help you in obtaining the permit.

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