5 reasons why mainland companies are the most lucrative option for investors.

5 Reasons Why Mainland Companies Are The Most Lucrative Option for Investors.

Over the years UAE has become one of the most dynamic and successful economies in the world. It is constantly thriving with commercial activity and new companies are being formed regularly as many people want to take advantage of the business opportunities the country provides. However, before you can begin the company set up process it is necessary to decide which location is the ideal fit for you. UAE offers a range of company formation options for investors including Mainland, offshore and numerous free zones to choose from. Out of all these options, Mainland company formation is by far the most popular and lucrative choice for investors. Mainland companies are onshore business entities whose activities are not geographically limited. They can register for a broad range of business activities and provide investors with the flexibility to adapt and grow as compared to other company set up options in the UAE. Below are 5 reasons why Mainland company set up is the best option for investors.

Diverse business activities

Mainland companies are given their license by the Department of Economic Development (DED) while the respective free zone grants the license for free zone companies. Each free zone specializes in a particular industry and business activity, so the license granted is also for that specific type of business activity. Mainland company formation in Dubai, on the other hand, has far less restrictive licenses. These companies can also diversify their business operations much more easily and expand into new markets and business ventures with ease.

Easy company growth

As companies become more established they wish to grow and expand their operations. Mainland company set up in Dubai gives them the option to grow according to their changing needs. Unlike free zone companies, businesses on the Mainland are allowed to set up their company branch anywhere in the UAE.

Ease of access

Free zone companies are restricted to conducting their business activities within the respective free zone premises. To conduct business operations outside of the free zone, companies must obtain approvals from government authorities and a new license. Mainland companies face no such restrictions. They are free to conduct their business activity anywhere in the UAE and internationally as well. Moreover, Mainland companies can also trade directly with the local UAE market.

No visa restrictions

Mainland company set up in UAE offers the option of unlimited visas to investors. All free zone companies get visas according to the office space they avail. For example, in DMCC companies can rent a Flexi desk for 18,000 AED which gives the option of up to 3 visas. If a company requires more visas they will have to expand their office space.
Mainland companies have no such restrictions. They can opt for as many visas as they want and avail whatever office solution works best for them. This flexibility in the number of employees and the kind of working space that is available makes mainland company formation a more effective option for investors.

Access to government contracts

Mainland companies can also bid on lucrative government contracts. The ability to work for large scale government projects in the UAE and other GCC countries makes it a favourable option for investors. Working on multi-million dirham government contracts can be profitable for businesses in establishing their presence and improving their status.

Mainland company formation in Dubai can have numerous benefits. Many of the restrictions that these companies once faced have now been removed making them the best option for investors looking to establish a business that will allow them to expand in the future, diversify their activities, operate anywhere in the UAE and work with the government. Investors looking towards the future will find that Mainland companies satisfy all their needs so they can grow and expand as they choose.
At LegalWorks, our company formation experts can guide you from the start to the end of the incorporation process. Once you have determined the type of activity you wish to conduct, our team will assist you in determining the type of license required, and the legal structures the business can take. We will ensure that your company tradename is approved, and you are granted initial approval. Our company formation specialists will handle the registration, documents submission and fees payment process for you. Rely on LegalWorks to avail the best the Mainland has to offer.

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