What are the Benefits of Forming a Mainland Company in Dubai

Let us talk about the mainland company in the UAE and its importance. A mainland company in Dubai is a licensed company under the Department of Economic Development in the relevant Emirate of the United Arab Emirates. In this article, we will detail some of the benefits of Business registration in the mainland of UAE Emirates. It can serve as a guide to business setups on the mainland.

Benefits of Mainland Company Formation in Dubai

Dubai Authority offers tons of benefits for company registration on its mainland. The business setup of a Company on the mainland ensures a prosperous future in its commercial activities as well as professional ventures. Mainland registration offers a broad scope of trade to Businesses. Some benefits include complete ownership of the business and location flexibility of operations. Here we list the reasons entrepreneurs look for before establishing a mainland company in the UAE.

Dubai offers Location Flexibility & Zero Restrictions on Businesses

The UAE Authority puts no restrictions on the registered mainland company for trade with other businesses. Also, there are no limits on choosing the business location. Mainland Companies in Dubai can also offer services to the Authority. You can also trade directly with consumers from anywhere in the gulf country. Setting up a Mainland Company also allows businesses to open multiple regional branches, thereby building a strong presence throughout the country.

Mainland Companies can cater to a wide array of Services

Mainland businesses can cater to a wide variety of work. If you seek to diversify your offering within the Dubai mainland, you can re-register the new business activity with the Economic Department. You will be ready to trade freely in the mainland jurisdiction.

UAE Government aid for Mainland Corporations

The UAE government incentivize businesses for mainland setup in Dubai. They offer big government tenders to set up big businesses in the UAE. Recently, Abu Dhabi Executive Council, or the ADEC, approved 17.5 billion dirhams (USD 4.76 billion) for spending on government projects. They spent over 4 billion dirhams on Infrastructure alone. In addition, approximately 2 billion dirhams were allocated for education. Lastly, a combined 1.2 billion dirhams were spent on upgrading government as well as social facilities. Therefore, as an established mainland company, your Business will be in an advantageous position to partake in such lucrative government contracts.

Complete Ownership of Mainland Businesses in Dubai

Earlier, the UAE authority guaranteed complete foreign ownership of a business entity only under the following circumstances:

·      Company setup in a Free Zone

·      Setting up a Professional Services Company in the Dubai Mainland, such as:

o   Sole Establishment

o   Civil Company

But recently, Sheikh Al Maktoum permitted complete Foreign Ownership to Mainland Companies in the Gulf City. Many have welcomed the change as Prospective Overseas Investors are looking to kickstart their business operations in the Emirates.

Mainland Companies are good news for the International Investors

It is also great news for International Investors fairly new to the Emirates style of Business. In UAE, complete Foreign Ownership means Businesspersons can straightaway kickstart their business operations without canvassing for any of the following Entities in Dubai:

·      Emirati Company

·      Individuals acting as a Business Partner

This complete ownership of UAE business in the mainland provides the required push for the growth-machine economy to willing Foreign Investors. The exception to this rule is the strategic sectors of Oil and Gas. In such Departments, Dubai Authority still mandates a Local Partner.

Why must you make a switch from a Free Zone to a Mainland Company in Dubai?

If a Business is currently set up as a Free Zone Company in Dubai and wants to take a leap in forming a Mainland Company in the UAE, such a switch is possible as per the Dubai Corporate Laws. In UAE, over 25k companies trade from three of the biggest free zones in the Emirates. Many Entrepreneurs have set up their Businesses in the Free Zones. They also enjoy the conveniences of pre-packed inclusions for running businesses in the designated free zones. But there are limitations to this free zone model as well. Free Zone companies are ideal for starting businesses in UAE. But switching to the mainland will be a wise decision if you wish to expand your Business. This switching is a crucial decision for business growth and prosperity.

If you manage to get the right UAE sponsor or a Business Registration specialist, then transitioning from the free zone to the Mainland model will be a clever move. To make such a transition, connect with the Incorporation Experts at Registrationwala. Our experts can detail every aspect of the Mainland Business Setup process in Dubai. We are one of the leading Business Incorporation specialists in the Gulf Region.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.