Mainland Registered Company in Dubai remains a stronghold for investors due to its scope of growth and diversification. Foreign Investors are increasingly looking for a Mainland Registered Company in Dubai as part of their growth strategy.
Let’s look at 5 reasons why companies chose to set up their business in the Mainland of UAE. Often businesses are seen to migrate to the Mainland from the Freezones of UAE as part of their expansion plans. Here are a few strong points for the Mainland Registered Companies in the UAE.
1. Better Growth Opportunities for Mainland Registered Companies
Mainland companies have more flexibility in terms of business operations and growth prospects in the local market due to the vast market potential of the UAE.
For Freezone companies, there are certain rules for staffing, office spaces, and interaction with the mainland. Freezone businesses have to get a license from the Department of Economic Development (DED) to operate in the Mainland.
Freezone companies can migrate to the Mainland by setting up a Company’s Branch or set up an LLC Company in the Mainland. It will give rise to new opportunities as there are a lot of public and private projects initiated in the Mainland of Dubai.
2. Easy Diversification of Operation for Mainland Registered Companies
To launch new products, services or sectors, business activity, etc., Mainland Company will be more conducive. Companies in the Freezone would require separate clearance and documentation to execute new business activities that are not registered under its existing trade license.
Thus, Mainland Business Setup helps in diversifying the company’s product offering in a cost-effective and efficient way.
3. More Visa Availability for Mainland Registered Companies
For Mainland Companies there is more room to hire staff, as sponsorship of your employees is vested with the business owner itself. Based on the business goals and office requirements more staff can be added to grow the business faster.
In the case of Freezone companies, depending on the license package and office space, there is a limitation on the Visa quota and office expansion.
4. Access to Government Contracts
UAE government gives out tender contracts worth billions of dirhams every year. There are a handful of live projects to be executed by the Government in various fields such as transportation, construction, real estate, travel & tourism, etc.
Only Mainland firms can bid for government tenders and projects. So this can be a potential business opportunity for business expansion if your business activity is in line with the tender requirements.
5. Better Involvement in the Local Business
To realize your long term growth opportunities and get involved in the local trading and delivering services within UAE, a Mainland LLC Company or Branch of your Freezone Company is the ideal way for business expansion.
Also, for the Freezone Companies by starting a branch in the Mainland can reduce the cost of the local distributor or service provider.
As there are restrictions for Freezones to do business in the Mainland, It is the service provider who currently delivers the products/services on behalf of the Freezone Company in the Mainland.
When is it ideal to migrate to a Mainland Registered Company?
A simple cost-benefit analysis will help you in choosing whether the expansion to the mainland is worth or not. Take stock of the desired location, office space, rent, DED license, other miscellaneous expenses of opening a new office, your existing expenses with your Freezone company, etc.
If your business activity is more conducive to be operated from the mainland, then go ahead. E.g., trading, restaurants, shopping centers, educational institutions, retail stores, etc., is best to be on the mainland to get more footfalls than on Freezone areas.
Freezones are the ideal location to test your business and the market scenario especially when you are an entrepreneur who is new in the UAE.
By choosing a cost-effective business setup package, set up your company and start working with international clients. You can deliver services & products within the Freezone and to the global markets being in the Freezone jurisdiction.
Also, enjoy the tax-free environment, 100% ownership, 100% profit repatriation, world-class infrastructure, easy business setup, etc.
However, as your business pickups growth, you would want to take full advantage of the UAE local market and grab a few government contracts. For that, Mainland Company Registration will help you.
The business potential in the UAE is enormous with bustling business activities year around. So it is always worth the investment for a mainland LLC or Branch as part of future growth plans.
Aurion will assist you in the complete business formation procedures for you to establish your LLC or branch in the Mainland of Dubai.
Feel free to give us a call right away!
Contact: Aurion Business Consultants