Ad Posted Date
Benefits of mainland company formation in Dubai
There are many benefits to company registration on the mainland. Mainland company setup ensures a prosperous future in your business activities and professional ventures. Mainland companies offer a broad scope of trade, 100% ownership and location flexibility. These are some of the reasons why entrepreneurs look to establish a mainland company in the UAE.
Location flexibility and zero trade restrictions
A Dubai mainland company has no restrictions on trade between other businesses and has no limits on location. Mainland companies can also offer services to the government, or trade directly with consumers from anywhere in the UAE. Mainland company setup also allows businesses to open multiple branches, building a strong presence throughout the Emirates.
Broad working scope
Mainland businesses are also in a position to undertake a wide scope of work. When you’re wanting to diversify your offering within the mainland, simply re-register the new business activity with the DED and you’re ready to trade freely.
Access to lucrative government contracts
Any incentive for mainland business setup in Dubai is that government tenders are big business in the UAE. In recent years, the Abu Dhabi Executive Council approved AED 17.5bn (USD 4.76bn) of spending on government projects, including over AED 4bn on infrastructure. Approximately AED 2bn was allocated for education and a combined AED 1.2bn on upgrades to governmental and social facilities. As an established mainland company in Dubai, you’ll be well positioned to take advantage of such lucrative government contracts.
100% ownership control of mainland business entities
Traditionally, 100% foreign ownership of a UAE business entity was only possible under two circumstances:
· When setting up in a free zone or
· When establishing a professional services company in the mainland (Sole Establishment or Civil Company)
In recent years, HH Sheikh Mohammed bin Rashid Al Maktoum has allowed 100% foreign ownership of mainland companies in the UAE. This has been a welcome change for prospective overseas investors looking to conduct business in the Emirates. This is great news for international investors new to the Emirates. 100% foreign ownership means business owners can get straight down to business, without the need to canvass for an Emirati company or individual to act as a partner. 100% foreign ownership of mainland UAE business provides incredible potential for the UAE’s growth-machine economy to foreign investors. However, certain strategic sectors, such as oil and gas, still require a local partner.