Hi, I'm Thiago from Brazil. My company is registered in a UAE free zone, and we're now receiving enquiries from customers in Dubai. Can a free zone company legally sell goods in the UAE mainland, and what is the correct way to do it?
Hi Thiago,
Yes, a free zone company can sell goods in the UAE mainland, but it generally cannot sell directly without following the approved legal framework. The UAE has established several routes that allow free zone businesses to access the mainland market while complying with customs and commercial regulations.
Approved Ways to Sell Goods in Mainland UAE
|
Method |
How It Works |
|
Licensed Mainland Distributor |
Appoint a registered mainland distributor or commercial agent who imports and sells your products within the UAE. |
|
Business-to-Business (B2B) Sales |
Supply goods directly to a mainland company, with the buyer completing customs clearance and import formalities. |
|
Mainland Branch or Permit |
Establish a mainland branch or obtain the required operational permit through the relevant economic authority, such as Dubai's Department of Economy and Tourism (DET). |
Customs and Tax Considerations
Before planning mainland sales, it's important to understand the applicable charges:
- Goods moving from a free zone into the UAE mainland are generally subject to a 5% customs duty.
- Mainland sales are also subject to the standard 5% UAE VAT, where applicable.
- Businesses must comply with the UAE's corporate tax regulations administered by the Federal Tax Authority (FTA).Many entrepreneurs assume that having a free zone licence automatically allows them to sell directly across the UAE, but that's a common misconception. Before expanding into the mainland market, decide which sales model best suits your business. If you expect regular local sales, establishing a mainland branch or obtaining the appropriate permit may be more efficient than relying solely on a distributor.
