Perks of setting up a business in mainland Dubaiby Simna N. Digital Marketer
A mainland license issued by the Department of Economic Development (DED) entitles you to some privileges which a free zone license doesn't offer. When you first start out your business, choosing between a free zone license and a mainland license can be a bit tedious. A mainland company setup in Dubai can offer many advantages that a free zone company setup doesn't offer. Here we will point out 6 benefits of a mainland license which are often overlooked.
1.) Easy mobility
Owner of a mainland business license means there are no restrictions placed on whom or where you can trade your goods. You are given the freedom to operate anywhere in the UAE and internationally.
A mainland business license allows you to choose any activity without any restrictions being placed on any trade permissions required across the UAE.
In terms of the ownership of the company, there are certain requirements to keep a local sponsor or a local service agent for your mainland company setup. It is mandated by law to give 51% of the shareholding to a local sponsor or a set annual fee to an agent.
A company formation specialist can guide you on which type of sponsorship is suitable for your business setup.
2.) Trade beyond borders
With globalisation taking stronghold across the world, it is important that when you start a business you can easily trade your goods across the borders.
If you think your product will have a market internationally you must go for it. If you want to penetrate new markets, only a mainland business license in the UAE can allow you to trade internationally.
The world is connected like never before and growth and expansion are key to the success of any business in this day and age.
Dubai is a smart city where every day the processes, systems, networks keep evolving to enhance the experience of the people. Therefore your business also needs to evolve with time.
If there is a new invention or an innovation you must make sure that your business also takes up the opportunity and adapt to the new environment.
That being said a mainland license in Dubai calls for easy, smooth administration and fewer restrictions compared to its counterpart free zone license. If you want to diversify and increase your scope of business a mainland license can easily accommodate it with little to no hiccups.
4.) Government contract bidding
Another attractive benefit of operating in mainland Dubai is the ability to bid on lucrative government projects. If your business offers any service suitable for government project requirements, you are in a good position.
You never know, you could be the next company that could land a contract worth billions of dollars. Bagging a government contract can benefit you long term locally and internationally.
It adds credibility and trust to your company and that one contract can increase your business reputation manifold.
5.) Unlimited Visa
When starting a business we all want to grow and expand our team. This is made possible by the mainland business license.
A free zone restricts you on the number of visas you can apply for your company, whereas a mainland company gives you unlimited visas subject to your office space.
The area you require is 100 square feet per visa. If you have workers working remotely for your business, you can approach the DED regarding the matter.
If you want to start up branches on different areas of the UAE, a mainland license will allow you to do that.
After all, when a business is liked by the people, you have to open up different branches across the city to cater to everyone in the city.
6.) Easy bank account opening
Created on Mar 2nd 2020 01:48. Viewed 319 times.