Today, we will discuss UAE mainland business, some aspects, and details related to Mainland Company and Free Zone company. After you are done with the legal part, you become the owner of a company subject to only the Laws of this country. In contrast, you and your company’s employees are exempt from paying taxes. This short guide will be helpful for those who are just planning to start their own business in Dubai.
Advantages of Establishing a Business on the Dubai Mainland
First of all, you should understand that the idea of setting up a company on the Mainland already guarantees you opportunities you would not be able to get in other countries. Most who have already implemented this idea are successful entrepreneurs of large companies. If you want to keep the entire company under your control and monitor transparent graphs from the finance department, you need this. Now, let’s look at a few crucial aspects in this area.
Locate your business anywhere, with no limitations
The government imposes no limitations on mainland-based units regarding trading with foreign partners.
- Select the most suitable place to start your business
- Enter into contracts directly with the government and its representative branches.
- Additionally, you can discuss personal business with clients from the Gulf region.
- Open multiple departments/offices that belong to your enterprise.
Mainland enterprises will implement a full range of service offerings.
You will have a full range of business solutions and other financial transactions. The DED will guarantee some additional registration options. Once you have finished preparing all the necessary documents, you can efficiently conduct business on the Mainland.
UAE Government aid for Mainland Corporations
The UAE government is always open to cooperating with new partners on the Mainland. The state offers tenders for a jump start for clients who plan to open a large business. The local council recently granted the green light to invest almost 18 billion dirhams in state projects. In addition, more than one billion dollars was put into infrastructure. In contrast, more than two billion were assigned to educational projects— last but not least, social and state infrastructure renovations – 1.2 billion dirhams. Therefore, if you plan to participate in state grants, be sure that the government will always work with your company.
Absolute Control Over Mainland Companies
Originally, new candidates were confirmed according to these cases:
- Free Zone Company
- Establishing a competent organization in Dubai’s Mainland, like:
- Single-owner business
- Private company
Lately, Sheikh Al Maktoum granted total Foreign Ownership to Mainland Enterprises in the Gulf region. Numerous people hail these changes as foreign shareholder groups are eager to cooperate with UAE partners.
Promising conditions for foreign investors
Companies abroad will most likely cooperate with such companies because of the tax-free Zone. Based on the above mentioned rules, partners in the UAE eliminate the necessity to receive any permits from the following entities:
- Emirates Company
- Entities that are business associates
Total ownership of the Mainland company offers potential foreign shareholders the necessary boost for the financial system’s dynamic engine. Oil and gas industries remain untouched. Dubai Authority maintains a standard policy for these Departments – you must be certified as a Local Partner.
Essential reasons for switching
According to Dubai Corporate Laws, any company can shift from being established as a Free Zone Company to a Mainland. Some of the largest free zones in the country are places of arrangement for nearly 25,000 organizations. Free Zone has become a profitable option for all types of entrepreneurs.
They also appreciate the advantages of prepared features as they operate their enterprises in the authorized free zones. Consider that such an approach does, however, have some drawbacks. The best way may be a free zone company. Moving to the Mainland, however, will be a sensible choice if you want to grow your business locally.
Consider transition for the company’s success.
It is important to mention that you can always change your company’s legal status.
Still, it is advisable to check the entire legal part before doing so. Currently, 25 thousand companies are actively developing in the largest zones of Dubai. The first option is popular among entrepreneurs because it offers ready-made business opportunities, an advantage for newly established enterprises. But it would be best to consider both options. First, determine whether you begin in a free zone or on the Mainland. Of course, you may prefer the first option for a head start. Still, if you plan to expand any company within the country, it is advisable to select the last one. Switching will be a viable option for entrepreneurs with a transparent expansion plan considering geographical aspects.
Switching to the Mainland may sound like a good alternative if you can locate a suitable sponsorship or a company registration expert. Contact GFLO Сonsultancy to accomplish this transition. Our professionals will explain every step of Dubai’s switching procedure.