Benefits of Setting up of Business in Dubai Mainland: The city of
Dubai is growing faster and starting your own company in
Dubai is much easier than you think. Thanks to the
Department of Economic development as it ensures effective and smooth set up of businesses. In Dubai, you can find two kinds of jurisdictions, the
Mainland and the
Free Zone. Both these have their own set of pros and cons. From an outsider's point of view, free zones look more accessible with all their promises and cost effective propositions, but an in-depth analysis would point out that
free zones are not the only option available for offshore entrepreneurs looking to
start a business in the UAE. It is also to be noted that free zones are not the most beneficial business structures to start with.
Free zone companies are allowed to trade only within and not in the mainland, and hence if you want to trade in the mainland or acquire
business contracts in the long run, it is always better to start trade in the
mainland.
Various factors determine the type of
business set up including different business activities and target customers. You can set up a company in the mainland under the following circumstances
Intend to Trade with other Mainland companies
UAE mainland companies have the freedom to trade within the
mainland, whereas
free zone companies are allowed to trade only in free zone areas.
Free zone companies intending to trade with
mainland companies need to undergo processes like paying customs and distributing through a local distributor. Meanwhile,
mainland companies can trade freely within the mainland and beyond without any restrictions.
Comprehensive Business Scope
Free zones have a restriction with the scope of the
business depending on the place. For example companies in
Dubai Healthcare City are allowed healthcare related businesses alone. Similarly in
Dubai knowledge village only education and similar businesses are allowed. Likewise for Maritime businesses RAK maritime businesses is the better option. It should be kept in mind that these companies' activities should not expand beyond the free zone
Working along with Government Bodies
UAE government projects are huge with high investments and returns. These projects are mostly for specialized companies to be their contractors, and taking up these projects is an extremely profitable one. These projects are offered only to
mainland businesses, and
free zone companies are not considered here. Hence, to get a UAE government project, the company should be based on the
mainland.
Market Presence
The major advantage that
mainland companies have is opening offices anywhere in the
UAE. This allows establishing trade in the local market. With offices open anywhere in UAE, chances of enhanced presence all over the country are high.
Meanwhile,
free zone companies are not permitted to operate outside of the
free zones that they are registered with. In order to trade in the mainland, they need a distributor and this burns a hole in their profits. This shows the
mainland to set up is much advantageous over the free zone.
Financially feasible
The positives of
free zone companies like low tax and duty tax is always highlighted but mainland companies do have impressive incentives.
Mainland companies do not need a minimum capital requirement, making them an affordable business option.
Setup your Business Today!