Why Mainland Companies are Highly Recommended?
Mainland companies are establishments licensed to run in mainland zones in the UAE. Company formation in the UAE has been a popular choice in the past few decades. This preference arises from the versatile market and great exposure that the UAE market has at its disposal.
Mainland companies have an upper hand as compared to others, such as the free zone or offshore zone. One of the biggest advantages of being flexible. The ease of flexibility allows companies to set forth with their ventures without having to worry about much. Here are a few reasons why mainland companies are recommended for most business settings.
Trading options with local and international investors
Trading is an important part of any business. You want your company to be able to expand and connect with traders and consumers across the world. The UAE business setup is known for its exposure and setting base here has been fruitful for many companies.
Mainland companies enjoy restriction-free business as they can conduct business with local and international investors without any prohibition. Being readily adaptable to trading options gives your company an edge. It remains to be one of the most compelling options for companies.
Getting government contracts
Mainland companies get the benefit of taking up government contracts. Government projects are profitable and provide a great portfolio for your company. Taking up government tender bids can only be done by companies who have a mainland license. Thus, proving mainland business advantageous over other business licenses.
Free Zones in the UAE cannot take up government tenders and projects due to jurisdiction which puts them at a disadvantage fairly. Government projects are lucrative and have millions of dollars invested in them every year.
If your company matches the criteria required for such projects, it will be highly beneficial and profitable for your business. Working on government contracts and gaining a good reputation for your effort gives you a long term blueprint for future networking and expansion.
Choosing a mainland business helps you get a footing in the local and international market. Mainland license allows companies to conduct trade with local and international investors without any objection. This allows companies to directly come in touch with their business partners and thus gain a personal connection with clients.
This further affects the company’s market presence. If you wish to build your presence through the Emirates, market presence will play a huge part. In the case of the UAE free zones, a distributor or an establishment of a third party might be required to conduct business with local investors.
This might affect in the long term as the third party might end up cutting off your profits through service charges. So, to opt-out of such intermediaries mainland business is preferred.
Free zones are known for their low tax and duty rates. But that doesn’t mean mainland doesn’t come with equally attractive stimulus. Mainland companies enjoy zero corporate tax and are exempt from minimum capital requirements. This makes the UAE company formation in mainland zone affordable and cost-effective. Also, unlike a few free zones, mainland companies are not subject to yearly auditing.
Scope of business
Having a mainland license for your company means you can easily expand your business far-and-wide throughout the UAE. Unlike the mainland, free zone companies cannot expand to other areas for trading activities.
It is a given that mainland license holders also a smoother, faster, and efficient administrative process. This always easy expansion and a larger scope for your business.
Office space and visas
Every mainland company is mandated to have an office. Here is the good news, you can set up your office anywhere in the UAE. Having a mainland license makes your company eligible for renting an office space. The rent can be negotiable with the DED. A rule of thumb – the larger your team is the more visas you can avail for.
There is no limit to the number of visas you can apply for under mainland zone. Not only that, foreign investors can choose to apply for an investment visa which allows them and their families to work and live in the UAE for up to three years. You can get your mainland trade license in the UAE issued by the DED.
These are some of the reasons why you should set up a mainland company. Identify your company needs and business activity and apply for a license.
Want to set up your mainland company in the UAE? Radiantbiz is at your service. We help clients with business setup in the UAE for the mainland, free zone, and offshore zones. We help you in every step of the way. Have questions? You can contact our team and we’ll get in touch with you.