There are 3 types of jurisdiction in UAE: Free zone, Offshore and Mainland. For any investor to operate their business in the local market require either Free Zone or Mainland company. Both jurisdictions have their own pros and cons depending on the business activity. Whilst Mainland Company registered with DED is permitted to carry on business anywhere in the world including the United Arab Emirates (UAE), Free Zone business entity operation is restricted in respective Free Zone. But looks like things are changing slowly.
Earlier, as per law, a Dubai free zone registered company had only one option to expand its business in mainland i.e. either by restructuring through incorporating a branch or subsidiary company or through mediators.
Now, there is a new development under the law. An initiative has been taken by Department of Economic Development (DED) according to which, all Free Zone companies that are operating inside Dubai can now apply for a permit to DED for doing the business transaction in mainland without opening a branch. This permit is issued only to companies registered in Dubai Free Zones. However, it must be noted that the permit is available to selected activities only.
Documents required for this permit are:
This The new law development can be much beneficial to the companies established in Free Zone and looking to expand their business in mainland with less expense compared to establishing a new company. So, what are you waiting for? Contact us and get your permit issued and commence your business in UAE without restrictions.