Can a free zone company do business in Dubai mainland?

With regards to company formation, the free zones are the best option for each investor because of the different advantages like tax-free zone, 100% foreign ownership and the ease of setting up a business. However, as your business grows there will be a stage where you would need to grow your business out of the free zones. A company set up in free zone can do business in mainland subject to the limitations forced by the law of the UAE. There are few alternatives for the free zone companies to extend their business operations to the mainland, let’s have a look what are the accessible solutions for that.

Opening of a branch of the free zone company with DED: A free zone organization can start its business in the mainland by registering their branch with the Ministry of Economy and the DED. The DMCC business setup must lead a similar business action as the parent company and must be a similar name as the parent company. The branch can be entirely claimed by the free zone element and it will have a similar trademark as the parent company. There is additionally a necessity of delegating a local service agent. If the free zone company is possessed 51% or more by UAE nationals, there is no requirement of selecting a local service agent. It is to be noticed that local service agent doesn’t have any role in the business activity of the branch. The role of a local service agent is to ensure the branch can proceed with its business in Dubai.

Forming a civil work company: Civil work company is set up to carry on expert activities. It tends to be possessed by an outsider or unfamiliar corporate element (100% Ownership) registered in free zones gave that the activities of the corporate body coordinate with the activities of the civil work company. A UAE local service agent (LSA) must be delegated in the civil work company. LSAs don’t hold any stake in your company, similar to the local sponsors.  The role of LSAs is to liaise with the public authority office for your sake and help you with all lawful systems like license approval, work permit handling, and visa applications etc.

Form a LLC company: Each of the investors is obligated to the extent of their offer in the capital of the company. A company setup in Ajman free zone can be one of the partners of the mainland LLC and operate a business in the mainland of Dubai.