Dubai Introduces New Benefits for Free Zone Companies
Posted on 21 Mar 2025
Dubai has once again reinforced its position as a global business hub with the issuance of a new resolution aimed at enhancing the operational flexibility of free zone companies. The Executive Council Resolution No. (11) of 2025, issued by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, now allows free zone companies to expand their operations into mainland Dubai under specific conditions.
Key Highlights of the New Resolution
The new resolution represents a major step forward in Dubai’s business landscape, granting free zone businesses greater opportunities to grow and thrive. Here are the key aspects of the regulation:
- Expansion Beyond Free Zones: Any company licensed by a free zone authority can now operate outside the free zone and within Dubai, provided they obtain the necessary permits from the Dubai Department of Economy and Tourism (DET).
- Licensing & Compliance: Businesses looking to expand outside the free zone must acquire either a branch licence in Dubai or a permit for specific activities. These licences are valid for one year and are renewable.
- Separation of Financial Records: Companies must maintain separate financial records for their operations within and outside the free zone to ensure regulatory compliance.
- DET’s Role in Defining Economic Activities: The DET, in coordination with the relevant licensing authorities, will publish a list of economic activities that companies can conduct in Dubai within six months.
- Regulatory Compliance & Inspection: Companies operating under this new framework are subject to inspection to ensure compliance with federal and local regulations.
Aligning with Dubai’s Vision for Economic Growth
This latest move is in line with Dubai’s ambitious D33 Agenda, which aims to double the size of the emirate’s economy to AED 32 trillion ($8.71 trillion) over the next decade. The agenda also seeks to position Dubai among the top three global cities by supporting business expansion, encouraging innovation, and fostering a world-class digital economy.
Dubai’s pro-business policies continue to make it an attractive destination for investors, entrepreneurs, and multinational corporations. With this resolution, the emirate is demonstrating its commitment to economic diversification and ease of doing business, making it easier for free zone companies to integrate seamlessly into the mainland economy.
Why Set Up a Business in Free Zones?
UAE Free Zones offer one of the most attractive business environments for entrepreneurs and investors worldwide. These zones are regulated by their respective Free Zone Authorities and provide a wide range of benefits, including 100% foreign ownership, tax exemptions, and streamlined setup processes. Whether you are launching a startup or expanding an existing business, TAG ensures a smooth and efficient Free Zone company formation in the UAE. Setting up a business in a UAE Free Zone comes with numerous advantages, making it an ideal choice for investors looking for flexibility and full ownership. Key benefits include:
- 100% Foreign Ownership – No need for a local sponsor; full control over your business.
- Zero Corporate and Personal Tax – Exemption from UAE corporate income tax.
- Easy Business Setup – A straightforward process with minimal paperwork.
- Repatriation of Profits – Full repatriation of capital and profits.
- No Currency Restrictions – Flexible international transactions.
- Access to World-Class Infrastructure – Modern office spaces, logistics hubs, and networking opportunities.
- Fast-Track Visa Process – Obtain UAE residence visas for investors and employees.
- Industry-Specific Free Zones – Tailored zones for various sectors, including tech, media, logistics, and healthcare.
TAG specializes in guiding investors through the entire Free Zone company formation process, ensuring compliance with UAE regulations and maximizing business benefits.
How TAG Can Help Your Business Thrive
At TAG, we understand the complexities involved in expanding your business within Dubai. Our expertise in company setup, compliance, taxation, and advisory services ensures that you can navigate these new regulatory changes with confidence. Our team of highly skilled professionals is ready to assist you with:
- Company Setup & Corporate Services: Streamline your business expansion into mainland Dubai with expert guidance on licensing, location selection, and regulatory requirements.
- Accounting & Tax Compliance: Ensure your financial records meet the regulatory standards and optimize your tax strategy.
- AML & Compliance Services: Stay ahead of evolving regulations by outsourcing your compliance requirements to our experts.
- Advisory & Consulting: Receive strategic advice tailored to your business needs, including company valuations, tax planning, and business restructuring.
This is the perfect time to take advantage of Dubai’s evolving business landscape. Let TAG be your trusted partner in unlocking the full potential of your business expansion.
Contact Us:
📧 info@tagconsultancy.ae
📞 +971 (0) 58 518 4291
🏢 The Meydan Hotel, Dubai, UAE
