Why Mainland Setup in Dubai Works for Service Firms?

When it comes to launching a business in Dubai, free zones often cover the limelight.  They offer
100% foreign ownership and exemptions from taxes, making them a seemingly easy route for
international investors. However, for a service-based firm that wants to really capitalize on the local
market, a mainland setup can often be a much better strategy and more profitable option.

While free zones work well for companies that operate globally or regionally without needing to
touch the UAE market, a mainland license allows companies to have the freedom, flexibility, and
access to the market, which is vital for service-based companies.

1. Unrestricted Access to the Local Market

This benefit can be considered the most significant benefit of a mainland setup. A free zone
company is classified as a foreign entity in the UAE and cannot conduct business directly in the
mainland. To sell goods or services to mainland clients, a free zone company must go through a local
distributor or a commercial agent, both of which may be costly and time-consuming.

Alternatively, a mainland licensed service firm can:

Engage Directly with Clients: Bid on and obtain contracts from government departments, local
companies, and individuals across the UAE.
Open Multiple Branches: Expansion could not be easier; by establishing new branches across Dubai
and the other Emirates, no restrictions apply.
Establish a Local Presence: Establish itself within the local economy, develop relationships with local
clients directly, and compete for a larger portion of the local market share.

For service firms, such as consultancies, marketing agencies, IT consultants, and the like, unrestricted
access to a market is not a benefit; it is a prerequisite for growth.

2. Flexibility in Office Location

A free zone company must rent office space somewhere in the free zone it has jurisdiction over. This
can limit a company to a specific area and, in turn, force a company to work out of an area that is
not necessarily convenient for its clients or its own employees.
A mainland company can locate its office anywhere in Dubai, enabling outstanding flexibility to:

•  Choose a Suitable Location: Locate a centrally positioned office space that is easy access for
  clients;
• Save Money: Choose cheaper or larger office spaces that are well away from the prime but
  often costly free zones;
• Make it Convenient for the Team: Set up a hub that is accessible for your team so it is a
  shorter commute, improving their daily life and team morale.

Utilization of this freedom enables a service firm to tailor its physical presence to its operational
needs and clients, rather than being by the borders of a free zone.

3. Expanded Range of Commercial Activities

The authorities on the mainland have a full list of commercial activities that, in most cases, cover a
wider range to license than most free zones. This is more appealing to service firms because they
tend to provide a number of interconnected services.

For example, a business consultancy may want to provide training or HR services. With a mainland
license, you can normally list a larger and more comprehensive combination of activities on the
same license, providing you with more operational flexibility and less need for multiple licenses or
complicated corporate structures.

In addition, recently amended UAE law has meant that the longstanding requisite for a local Emirati
sponsor has been mostly removed. Most mainland commercial activities now permit 100% foreign
ownership, which had been one of the greatest roadblocks that was sending foreign investors to free
zones.

4. Easier Visa and Sponsorship Process

For growing service companies, the process of hiring and onboarding a group of people is important.
Usually, a mainland license will assist with the visa application process. Generally, there are fewer
restrictions on the number of visas that a company can apply for, allowing you to scale your team as
your business grows.

Conclusion

Free zones have their place, but for service firms looking to be part of Dubais dynamic economy, a
mainland setup is a powerful strategic tool. The advantages of a mainland structure allow you to
have unlimited freedom to operate anywhere in the UAE, choose a great location, carry out a wider
range of activities, and provide confidence that you have 100% foreign ownership; all of these must
translate into a good future.

A service firm with a mainland license is not merely establishing a branch in Dubai but is embedding
itself in the market with the opportunity for unlimited growth potential.

Why choose CDA for your Business set up needs?

CDA has been providing the best business set up services to its clients in custom-tailored manner as
per the requirement. The businesses planning to set up the businesses in Dubai mainland can
approach the experts from CDA to get the businesses floating in the most progressive market around
the world. The professionals will assist you to select the apt location, apt business licenses and assist
in simplifying application process in the mainland. To know more about the services, connect to our
experts now.