Dubai is known world-wide as a premium destination for trade, business, and glamour. The reason behind its elevation to this status is the local government’s consistent efforts to introduce laws encourage foreign investment, and infrastructure that is years ahead of any other nation in the Gulf.
Today, establishing your company in Dubai is considered as a huge achievement for companies all over the world. Dubai offers mainland, offshore, and free zones as the options for business setup.
Let us examine the benefits of obtaining your Dubai trade license in the mainland area:
Benefits of Company Set up in Dubai Mainland
1. Trade Freedom
In Dubai, you are allowed to set up in two different areas: Free Trade Zones and Mainland. Setting up in a free zone allows 100% ownership of your company but will restrict you to operating within that zone. This is where mainland triumphs over FTZ. Obtaining mainland trade license in Dubai will allow you to trade with whoever you please and wherever, including free zones.
2. Business Scope
Mainland trade license allows businesses to carry out a wider range of activities. This is in comparison to the activities that are allowed within free zones. Additionally, you will also be able to trade with international companies and expand your business beyond borders.
3. Diversity and Growth
Following up on the former point, with a mainland trade license in Dubai, you will be able to diversify your business more rapidly and accordingly to current trends. Moreover, you will be able to setup more branches of your business in any location in the Emirates with a mainland license. This in turn will lead to a larger market presence for your business should you plan to expand.
4. Government Contracts
The local government offers contracts for its projects to the most suitable bidder. In the event that you succeed in obtaining a contract, you have the opportunity to display your company’s expertise to a wide range of potential clients. This could prove to be very beneficial when you consider the fact that a good reputation with the authorities could lead to many future contracts and thus, greater long-term revenue.
5. Visa Freedom
Unlike setting up in free zones, mainland setup offers you the freedom of obtaining more visas. The number of allowed employees and thus visas, however, are allotted in proportion to the office space of your business.
Clearly, mainland business setup and trade license acquirement can prove to be very fruitful in the long run. However, the mainland company formation process is not all black and white. There are several tasks to be undertaken for successful mainland business setup, including:
Making an agreement with a local sponsor and giving them 51% of your shares
Getting documentation approval
Understanding the market and competition
Additionally, the paperwork may be arduous if you are new here. Thus, we recommend a business setup consultancy in Dubai. Their knowledge of the regulations as well as trade license fees and trade license renewal process will make your life easier and allow you to focus on other aspects of the business. Speak to us to learn more.
