Can I serve mainland clients without giving up my free zone company?
Can I serve mainland clients without giving up my free zone company?
A dual licence lets a company already registered in a free zone obtain an additional permit from Dubai's Department of Economy and Tourism (DET) to operate in mainland Dubai as well, without setting up a separate legal entity. The original free zone company stays exactly as it is, and the added permit opens an operational path into the mainland under DET oversight, provided the licensed activity matches what's approved in the free zone — each free zone sets its own eligibility conditions for allowing this dual licence arrangement.
On the tax side, if the company creates a "domestic permanent establishment" in the mainland through the dual licence, that branch's income is taxed at 9% because it isn't qualifying income — but this does not affect the parent company's status as a Qualifying Free Zone Person (QFZP), nor its 0% rate on its original qualifying income in the free zone, as long as profits between the branch and the head office are allocated on an arm's length basis and kept clearly separate in the accounting records. RASEEKH helps clients structure a dual licence arrangement so the two income streams are precisely separated from day one, so nobody loses the 0% benefit by mistake.