Why Should You Set Up a Mainland Company in Dubai

25 May 2021


Being an entrepreneur looking to start a business in Dubai, one of the most crucial choices you’ll have to make is where your company will be headquartered. Is it possible to start a business in a free zone or on Dubai’s mainland? At this point, you must make the best decision possible, one that gives your organization enough independence, while still maintaining its long-term survival.  

A Mainland Company Setup in Dubai would be an onshore company that will do business in Dubai’s local market as well as other areas of the UAE and internationally. In the case of industrial and technical licenses, there are no restrictions on the nature of its business. However, the formation of a Mainland Company in Dubai requires a local sponsor who is UAE national. 

That means if you’re a foreign investor willing to invest in Dubai’s Mainland Zone, you’ll need a local sponsor who will own 51% of your company while you hold the other 49%.

But, if you want full independence and versatility for your sector, forming a Dubai mainland company under the Dubai Department of Economic Development (DED) offers significant advantages which are as follows. 

1. Limitless Trade Across UAE

You have no limits on who you can trade with or where you can trade in Dubai if you register as a Dubai mainland firm. Setting up a business on the mainland allows you to prepare for any kind of trade without having to think about violating your trade permit in Dubai or anywhere in the UAE. When it comes to forming a mainland corporation in Dubai, there are certain legal requirements, including the requirement that it be backed by a Dubai national. You will keep managerial and financial oversight over the company by getting expert advice from a reliable business setup company. 

2. International Trading 

The company’s registration on Dubai’s mainland gives it the right to sell internationally, which is essential for many brands in today’s interconnected world. As a result, it’s a smart thing to think about the company’s future. If you intend to develop globally, what do you do? Do you want to be able to access main foreign markets without restrictions? Businesses with the ability to change in today’s quickly developing world are favored. Assume you have a product or service that has been popular in a specific region. In such a situation, you must organize the logistics to easily penetrate it. 

3. Freedom to Expand the Business

Any company wants to expand and prosper, and a Dubai mainland registration allows you to do just that. If you choose the mainland route, you will be able to apply for an infinite number of visas. It’s worth recalling that if you apply for more permits, you’ll need more warehouse or office space. On a mainland license, there are no restrictions on the number of visas that can be obtained. However, the ability to procure visas is contingent on the availability of office accommodation. The more office space you have, the more visas you will be able to get.

4. Diversify Your Business

Dubai’s emerging smart city technology is already propelling industries in new ways, and the ability to diversify will become more valuable as the nation approaches and beyond. Choosing a mainland Dubai location gives the company considerably more room to develop. Plus, it benefits you in terms of monetary like,

  • No currency restrictions for mainland companies
  • No minimum capital requirement for the formation of Mainland Company

5. Take UAE or GCC Governmental Work

Another advantage of registering on the mainland in Dubai is that you will be able to compete for lucrative government contracts. If your startup is likely to have services that are in line with government schemes, you might be in a strong spot. Government contract job in the UAE is worth billions of dollars per year. If your company earns the trust of Dubai’s authorities, you’ll be able to lay the groundwork for long-term business networking and development. 

Eventually, forming a mainland company in Dubai is much less difficult, if you choose the right partner. So your next move should be to examine your three-year business strategy and decide if Dubai mainland registration is the best choice for you. 

Need Helping Hand?

Our specialists in UAE mainland company formation will assist you with all facets of company formation in Dubai. With the right business setup partner, establishing a business in Dubai can be completely painless. You won’t have to think about the mainland company setup phase in Dubai with QuickBiz Business setup services. You may reach out to us at +971 56 406 6546 or [email protected] and our qualified experts will get in touch with you soon! 

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