Can Freezone Companies Sell in Dubai Mainland? – Understanding the DET Permit

Introduction

Can freezone companies sell in Dubai mainland?
Until recently, they could only do so indirectly through local distributors or mainland agents, since free zone entities were not allowed to trade or offer services directly within Dubai’s mainland.

Now, that restriction has changed. The Dubai Department of Economy and Tourism (DET) introduced a Dubai Mainland Permit, which allows eligible free zone companies to conduct specific activities directly in the mainland for up to six months, without establishing a separate onshore company.

This initiative connects Dubai’s free zones with the mainland economy, helping businesses reach new customers, participate in government projects, and sell directly to consumers. In this article, WellTax explains how the DET Permit works, which activities qualify, and how to apply effectively.

Step 1 – Understanding the DET Permit

The DET Permit authorizes free zone companies to operate temporarily in Dubai mainland under defined conditions. Rather than forming a new mainland entity, companies can obtain this six-month permit to trade, sign contracts, and deliver services directly to mainland clients.

However, it only applies to specific business activities approved by the Department of Economy and Tourism — commonly consulting, technology, design, and professional services. Each case must be reviewed for eligibility before proceeding.

This measure supports Dubai’s vision to integrate free zone and mainland operations, enabling smoother collaboration between businesses. It’s particularly valuable for firms wanting to test the mainland market before committing to a permanent setup.

For a detailed comparison of UAE business structures, WellTax’s Guide on Company Formation outlines the differences between LLCs, free zone entities, and sole establishments.

Step 2 – Applying for the DET Permit

Can freezone companies sell in Dubai mainland easily?
Yes — provided they follow a clear three-step process involving both the free zone authority and the Department of Economy and Tourism (DET).

1. Free Zone Approval
   Obtain written consent from the free zone authority confirming that your company can operate in the mainland under the DET Permit.
2. DET Application
   Submit the application to the Department of Economy and Tourism, specifying your approved activities and attaching supporting documents.
3. Payment and Issuance
   After fees and documentation are completed, the DET issues the six-month permit, allowing the company to legally operate in Dubai mainland.

WellTax assists clients throughout the process — from preparing documents to ensuring regulatory compliance with both the free zone and the DET.

Step 3 – Benefits of Selling in Dubai Mainland

The DET Permit offers a number of benefits for companies looking to expand:

• Direct Sales to Consumers
  Free zone companies can now sell directly to B2C clients instead of relying on distributors.
• Access to Government Tenders
  The permit allows participation in public contracts and government projects, previously limited to mainland companies.
• Wider Market Reach
  Businesses can connect with mainland customers and suppliers, expanding their operational footprint.
• Office Flexibility
  Companies can rent or share offices in mainland areas, improving visibility and client access.
• Market Testing and Feasibility
  The six-month duration gives firms the flexibility to test operations and measure demand before opening a permanent mainland entity.

These advantages answer a recurring question — Can freezone companies sell in Dubai mainland? — and show how the new permit creates real, measurable business opportunities.

Step 4 – Compliance, Tax, and Strategic Considerations

While the DET Permit makes mainland access easier, businesses must still manage corporate tax and compliance carefully.

Once a free zone company earns income from mainland clients, it must evaluate how UAE Corporate Tax applies, especially if it wishes to maintain Qualifying Free Zone Person (QFZP) status. Companies must clearly distinguish qualifying and non-qualifying income and keep separate accounting records. For more details, we recommend reading our analysis on Qualifying Free Zone Person changes, which explains how to remain compliant under the new regime.

WellTax supports clients in structuring compliant and tax-efficient frameworks to ensure alignment with UAE regulations.

For some firms, the DET Permit is an ideal short-term solution; for others, establishing a mainland subsidiary may be a better long-term strategy.

So, can freezone companies sell in Dubai mainland permanently?
Only by registering a mainland entity. The DET Permit remains a temporary authorization meant for market testing or short projects.

Conclusion

In summary — can freezone companies sell in Dubai mainland?
Yes, they can. The DET Permit gives eligible free zone companies a six-month window to trade, provide services, and collaborate directly with mainland clients without creating a new entity.

By understanding the permit’s scope, completing the application properly, and maintaining tax compliance, businesses can take full advantage of this opportunity to grow in one of the region’s most dynamic markets.

With WellTax’s guidance, companies can navigate every stage of the DET Permit process efficiently, expanding their reach across Dubai’s thriving mainland economy.