Let’s explain the rule and the most common exceptions — with support from your trusted accounting office in Dubai.
When opening a business in a UAE Free Zone, you benefit from full foreign ownership, tax advantages, and simplified licensing. But one important limitation is often misunderstood: you cannot legally sell directly to mainland clients.
⚠️ Direct business with Mainland? Not allowed (usually)
A company registered in a Free Zone can:
- Trade internationally
- Work with other Free Zones
- Operate within its own Free Zone
But you cannot provide goods or services directly to UAE mainland clients, unless you follow one of the approved legal methods.
✅ Legal workarounds
1. Use a local distributor or Agent
You can appoint a licensed mainland distributor to handle sales and delivery within the mainland. This is common for product-based businesses.
2. Open a Mainland branch
Create a mainland branch or subsidiary under the Department of Economic Development (DED) — this gives you full access to the mainland market but comes with extra costs.
3. Offer remote services (with caution)
In limited cases (e.g. IT, consulting), you may offer services remotely — if your work doesn’t involve physical presence in the mainland and your Free Zone license allows it. Always verify with a compliance advisor.
💼 Stay compliant with expert help
Crossing Free Zone–Mainland boundaries incorrectly can lead to fines or license issues. That’s why businesses rely on Qualira Accounting, a professional team specializing in accounting in Emirates, to:
- Structure operations legally
- Stay compliant with VAT and corporate tax rules
- Plan for dual licensing when needed
Your Team
Qualira Accounting Office in Emirates
info@qualira.ae
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