6 Benefits of Opening a Mainland Company in the UAE
In the UAE, Mainland Companies are Onshore Companies regulated by the Department of Economic Development (DED). As per the Mainland Company Incorporation Law, a UAE National has to hold at least 51% of the total equity in any company.
100% Foreign Ownership & UAE National acting as Local Service Agent without holding any shares can be possible only for certain business activities.
Opening a Mainland Company in the UAE as an entrepreneur can be an immediate and beneficial solution to your business.
Let’s see why
INVESTMENTS
Having a company in the UAE mainland can act as a catalyst for more investments and it offers more chances to directly trade in the local market across all the seven Emirates i.e. Abu Dhabi, Dubai, Sharjah, Ajman, Umm-Al-Quwain, Ras Al-Khaimah and Fujairah.
ACTIVITY
There is a much wider range of business activities that can be chosen when starting a new business in the UAE mainland. We can identify three main license categories: Commercial, Professional and Industrial.
TAX EXEMPTION
Mainland companies in the UAE are exempted from paying corporate taxes. In addition to this, there is no minimum capital requirement for the formation of a mainland company.
PREMISES
In most mainland companies you can easily get bigger premises, and therefore apply for a higher number of visas. Another plus point is that a mainland company can easily open multiple offices/locations across the emirates. On the contrary, to do so, a Free Zone company takes more time and the costs are higher as the company needs to appoint a local service agent to open a branch office of the free zone company in the mainland.
VISIBILITY
Having a physical presence directly on mainland ground enables companies to build a stronger presence in the UAE market
DIRECT ACCESS TO LOCAL MARKET
If your preference is to trade or offer a service in the UAE local market, a mainland company will allow you to interact directly with your local customers. On the other hand, a free zone company that wishes to enter the local market will be required to operate through a third party, be it a local distributor or a local agent, while also paying for a custom tax on any good traded in the local market.
For more information on how to open a mainland company, contact us at info@profikuo.com; our team will guide you through the entire process.
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