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Why is it beneficial to start a mainland company in Dubai?

One of the most significant advantages of setting up a mainland company in Dubai is that you are allowed to trade with other mainland companies. <br>https://www.shuraa.com/business-setup-in-dubai/

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Why is it beneficial to start a mainland company in Dubai?

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  1. Why Is It Beneficial To Start A Mainland Company In Dubai?

  2. Dubai has become the fast-growing city over the last decade and starting a business in Dubai is easier than ever. The DED (Department of Economic Development) has made the process of setting up businesses in Dubai smooth and time-effective. There are two types of jurisdictions or general trading license in Dubai- the mainland and Free Zones. Each of these jurisdictions has its own advantages and disadvantages. The final decision on the type of trading license you wish to acquire depends upon various factors, including the type of business activities and target customer. In this post, we’ll be discussing the benefits of choosing mainland business setup in Dubai; here are the most significant ones: Trade with Other Mainland Companies One of the most significant advantages of setting up a mainland company in Dubai is that you are allowed to trade with other mainland companies. Whereas with free zone business setup, there is a strict restriction to trade only within the same jurisdiction and in case they wish to trade with a mainland company they need to seek help from local registered distributors and pay customs duty. Mainland companies, however, have access within the UAE and even beyond without any restrictions.

  3. Work Along With Government Bodies Government projects in UAE are considered as huge business propositions. These projects are usually high on investments as well as returns. For these projects, government bodies often look for specialized companies to give contractors. This clearly implies that taking up such projects can be extremely profitable, and the only way to grab such opportunity is by having an acquiring a mainland business trading license in Dubai. This is because free zone companies are not allowed to pitch for such projects; they are allowed to work only with private commercial companies. So, for any business who wish to acquire contracts with the UAE governmental bodies must go ahead with the mainland company formation. Market Presence The biggest and most important benefit of setting up a Dubai mainland company is you are allowed to open an office anywhere in UAE. This is the ideal way to trade in the local market and have an enhanced presence all over the country. Whereas free zone business setups are generally not permitted to operate outside the free zone in which they are registered.

  4. As mentioned above these companies need a distributor to carry out their services in the mainland which eats a substantial amount of their profits. Therefore, for businesses who wish for a strong presence and long-lasting future in the market, a mainland business setup in Dubai is a more suitable option.

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