Why Should I Establish a Mainland Company?

The benefits of establishing a business on the Dubai mainland are undeniable. When it comes to establishing a firm on the Dubai mainland, there are numerous advantages that anyone may take advantage of. Choosing the correct location for your company is a critical issue that will play a role in the long term. It will have a significant impact on your company’s overall performance and success. So, have a look at the several advantages that come with forming a Dubai Mainland Company.

No restrictions

In Dubai, a mainland firm has no limits on who it can trade with or where it can trade. Establishing a mainland firm is required if you want to provide government services or trade directly with consumers. Because free zone enterprises are only authorised to operate within their own jurisdiction, they are not permitted to market their services directly to customers outside of it.

Furthermore, the amount of visas that a mainland corporation can issue is unrestricted. Your visa quota is determined by the size of your business. The more office space you have, the more visas you can issue, up to and including an endless amount.

Flexibility of location 

With a mainland company, you can be located anywhere on Dubai’s mainland, however with a free zone, your commercial space possibilities are limited. If you don’t need a physical location right away, it’s also possible to start a mainland business without one.

Widest range of activities offered

Mainland enterprises also have a wider range of business activities, whereas free zones have a more limited range of activities, which are generally related to the free zone’s subject area.

Future adaptability

A mainland corporation can grow with your business, allowing you to build branches in numerous locations on the mainland and grant extra visas as needed. When you register a business on the Dubai mainland, it becomes considerably easier to deal internationally. It is critical to grow your company to worldwide markets if you want to build a successful and long-lasting corporation. When you obtain a Dubai mainland licence, you have more flexibility in your international commercial endeavours.

100% ownership as an expat

It is a prevalent misperception that all Mainland companies must have a local partner that owns shares in the company, and investors frequently choose a Free Zone company for this reason alone. It is possible to possess 100% Ownership in Dubai Mainland with a professional activity (e.g. project management, accounting, or technical services) in the legal form of a Sole Establishment (one shareholder) or as a Civil Company (more than one shareholder).

Flexible rent or lease of the business center

When establishing a mainland company, it is critical to rent or lease a business centre in case someone does not have the financial means to construct their own office. Companies that are properly registered on Dubai’s mainland are more likely to receive flexible rentals or leases, as well as discounts. As a result, finding an economical workspace becomes a lot easier.

No corporate or personal tax

Companies and businessmen that establish their operations on the Dubai mainland are exempt from corporate and personal taxes. This is because your company’s profits are already generating revenue for both the company and the city’s economy. As a result, investing that money in developing their business on the Dubai mainland is a huge boost for any little or large company.

How can Radiant Biz help?

In matters like business setup in Dubai, people tend to get confused and get in chaos due to several rules, regulations, and multiple requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the initial state of the commencement of the business. Each venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.

Projectfrpjsc has a variety of packages for clients who intend to stay in the area for a long time. Expats and foreigners can get long-term visas and have their visas renewed with the help of the firm.

Pre-investment business advising services on legal structuring, licencing, and regulatory problems are also available. This can involve assistance with obtaining professional, trade, or industrial licences, as well as other services.

Written By Antima – 21^st April’22

Mainland companies are establishments licensed to run in mainland zones in the UAE. Mainland company setup in UAE has been a popular choice in the past few decades. This preference arises from the versatile market and great exposure that the UAE market has at its disposal.

Business setup in Dubai mainland have an upper hand as compared to others, such as the free zone or offshore zone. One of the biggest advantages of being flexible. The ease of flexibility allows companies to set forth with their ventures without having to worry about much. Here are a few reasons why mainland companies are recommended for most business settings.

Trading options with local and international investors

Trading is an important part of any business. You want your company to be able to expand and connect with traders and consumers across the world. Company registration in UAE is known for its exposure and setting base here has been fruitful for many companies.

Dubai mainland business setup companies enjoy restriction-free business as they can conduct business with local and international investors without any prohibition. Being readily adaptable to trading options gives your company an edge. It remains to be one of the most compelling options for companies.

Getting government contracts

Mainland companies get the benefit of taking up government contracts. Government projects are profitable and provide a great portfolio for your company. Taking up government tender bids can only be done by companies who have a mainland license. Thus, proving mainland business advantageous over other business licenses.

New company formation in Dubai cannot take up government tenders and projects due to jurisdiction which puts them at a disadvantage fairly. Government projects are lucrative and have millions of dollars invested in them every year.

If your company matches the criteria required for such projects, it will be highly beneficial and profitable for your business. Working on government contracts and gaining a good reputation for your effort gives you a long term blueprint for future networking and expansion.

Market presence

Choosing a company setup in UAE helps you get a footing in the local and international market. Mainland license allows companies to conduct trade with local and international investors without any objection. This allows companies to directly come in touch with their business partners and thus gain a personal connection with clients.

This further affects the company’s market presence. If you wish to build your presence through the Emirates, market presence will play a huge part. In the case of the UAE free zones, a distributor or an establishment of a third party might be required to conduct business with local investors.

This might affect in the long term as the third party might end up cutting off your profits through service charges. So, to opt-out of such intermediaries mainland business is preferred.

Financial gain

Free zones are known for their low tax and duty rates. But that doesn’t mean mainland doesn’t come with equally attractive stimulus. Mainland companies enjoy zero corporate tax and are exempt from minimum capital requirements. This makes the UAE company formation in mainland zone affordable and cost-effective. Also, unlike a few free zones, mainland companies are not subject to yearly auditing.

Scope of business

Having a mainland license for your company means you can easily expand your business far-and-wide throughout the UAE. Unlike the mainland, Dubai free zone companies cannot expand to other areas for trading activities.

It is a given that mainland license holders also a smoother, faster, and efficient administrative process. This always easy expansion and a larger scope for your business.

Office space and visas

Every mainland company is mandated to have an office. Here is the good news, you can set up your office anywhere in the UAE. Having a mainland license makes your company eligible for renting an office space. The rent can be negotiable with the DED. A rule of thumb – the larger your team is the more visas you can avail for.

There is no limit to the number of visas you can apply for under mainland zone. Not only that, foreign investors can choose to apply for an investment visa which allows them and their families to work and live in the UAE for up to three years. You can get your mainland trade license in the UAE issued by the DED.

These are some of the reasons why you should set up a mainland company. Identify your company needs and business activity and apply for a license.

Want to set up your mainland company in the UAE? Projectfrpjsc is at your service. We help clients with company registration in UAE  for the mainland, free zone, and offshore zones. We help you in every step of the way. Have questions? You can contact our team and we’ll get in touch with you.