What Makes the Mainland Different from Dubai's Free Zone?

The Mainland has the edge over the Sharjah freezone SPC because of the 100% foreign ownership rule when it comes to company formation. Previously, UAE businesses were only allowed to have 49% foreign ownership, with 50% belonging to an Emirati sponsor. However, the foreign investor enjoys 100% of the ownership, and there is no need to assign shares to a local UAE sponsor. This means that the role of the sponsor is largely irrelevant.

It can operate throughout the UAE:

Another major advantage of operating a business in a mainland company is operating throughout the UAE. Unlike the free zone, mainland corporations can operate in any part of the UAE. They can cater to the entire UAE economy rather than just a specific segment. A business registered in the free zone can access the local market, but it can’t expand outside of the free zone.

Allows foreign ownership of mainland companies:

The UAE government has created a new law that allows foreign ownership of mainland companies. Before, foreign companies were only permitted to register in the free zones, but this law has been changed to allow 100% foreign ownership of all businesses. This is great for foreign businesses looking to expand their operations in the UAE, but a company that wishes to operate exclusively in the free zone is better suited for this jurisdiction. The government also provides a range of incentives to help businesses establish their businesses in the UAE.

A mainland company can do business in the free zone:

They can operate in any region of the UAE. While a free zone company is restricted to doing business only in the area where the company is registered, a mainland corporation is much more flexible and can cater to the entire economy of the UAE. It is also important to note that both companies have their own set of advantages and disadvantages. The advantages of the free zone over the Mainland are often greater.

You can open branches in various cities:

A mainland corporation can do business in any region of the UAE. It can open branches in various cities, such as Dubai, Abu Dhabi, and Oman. And unlike a free zone company, a mainland company can conduct business on government contracts and private commercial projects. Moreover, a mainland corporation can operate in any country, unlike a free zone company restricted to one region of the UAE.

By admin