Can Freezone Companies Do Business in Mainland? | IBG

Can Freezone Companies Do Business in Mainland?

January 24, 2019by admin

It is easy to set up business in the UAE when you have an established consultant by your side, especially to start a business in Dubai. Unguided business set-up without seeking consultancy on permits and licenses could lead to UAE commercial or federal law violation, peculiarly, if you ask the question, can Freezone companies do business in Mainland?

Understanding differences among Jurisdictions, types of companies and acquiring the support of expertise will lead you to the right decision in favor of your business.

Mainland Company Perks

Mainland business and mainland companies have fewer restrictions compared to other types of companies and are free to operate anywhere across the UAE and globally. Department of Economic Development (DED) gives licenses to a mainland company also referred to as an onshore company. Presence of a UAE National is mandatory in all mainland licenses either as a Local Partner or a Local Service Agent.

LLC company formation in Dubai is the most common and easy to establish a form of a Mainland company set up. It is a flexible type of enterprise that amalgamates the features of a partnership and corporate structure. A minimum of two and a maximum of fifty people whose liability shall be limited to their shares in the company’s capital can form an LLC company. Furthermore, being a flexible form of company profit-sharing arrangement is also possible in an LLC. The company must have 51% participation from a UAE national while the rest 49% can remain with expatriates.

Freezone Incantation

Free zones in Dubai attract many entrepreneurs and aspiring businessmen because they offer world-class business amenities such as a state of art infrastructure, flexi-desk, flexi-office setups, complete privacy to investors with limited reporting obligations, and 100% ownership to expatriates. Freezone company setup is the most facilitated option out there yet, they are only permitted to operate within the free zone and are restricted to perform activities outlined in the trade license.

How can a Freezone company do business in the mainland?

If a Freezone company wishes to trade or provide service outside the free zone, it must adhere to the requirements of Federal Law No. 2/2015 concerning UAE Companies Law and documentation is required. Free zone companies also have an option to get connected with a distributor who has a DED license and then does business in Dubai Mainland. Apart from this, free zone companies may do business in Dubai Mainland through a civil work company, Limited Liability Company or establish a branch office.

A well- established team of experts guarantees that each step is gained knowledge and success on its own for it will not only save time and energy, but it will also save the effort and worry of law violation or unneeded expenses or time waste.

How IBG Can Help?

IBG Consulting UAE is a premier business setup agency of vetted professionals who have helped countless entrepreneurs innovate, build and grow their corporate presence in UAE with expert consultation and continuous guidance. To learn more about our company formation services contact us on +971 4 383 9324

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