Choosing between the mainland and free zone licenses is one of the strategic decisions foreign investors need to make before setting up a business in Dubai, UAE. As per the regulations of business setup in Dubai, companies with a free zone license are not allowed to do business or rent office space in the mainland area under normal circumstances. However, if it is deemed necessary, companies can rent office space in Dubai mainland with a free zone license.
You need to meet certain requirements if you wish to rent a mainland office space with a free zone license in Dubai. Business setup consultants in Dubai can advise investors on how to navigate these requirements. If you want to know how to rent a UAE mainland office space with a free zone license, read ahead:
Why do free zone companies open office space in Dubai mainland?
A free zone license is good for companies engaged in import-re-export business. However, it restricts your business presence to the free zone premises only. If your customers are largely in the mainland area, a free zone license will restrict you from being close to them. Moreover, office space rents in the UAE free zones are highly expensive.
This can be a critical disadvantage if you want to increase the number of your employees. Renting an office in the UAE mainland may help free zone companies break away from some of these restrictions. Free zone companies try to rent office space in Dubai mainland for the following reasons:
- To have a representation for the business in the mainland
- Provide more workspace for the employees
- To expand the company’s presence into the mainland territory
- To establish proximity with customers
- Leverage the cost-effective rental structure in the mainland area
How can Free Zone Company rent office space on the mainland?
Free zone companies in the UAE can rent office space in the mainland area by meeting a key requirement. Obtaining a NOC (No Objection Certificate) from the relevant UAE free zone authority is the key requirement free zone companies must meet to rent an office in the mainland. The process of obtaining a NOC from a free zone depends on the rules and regulations of the respective free zone authorities in the UAE. Company formation experts in the UAE can guide you through this process.
Advantages of renting an office space in UAE mainland
A free zone company can have the following advantages by renting an office space in Dubai mainland:
- Be physically close to your customers
- Hire more employees as office rent can be cheaper
- Avoid the hassle of obtaining a mainland trade license
- Employees can work in the mainland office with a free zone visa
Disadvantages of renting a mainland office with free zone license
We have detailed the benefits of renting an office space in the UAE mainland with a free zone license. However, it comes with certain restrictions as well. For example, investors are not allowed to trade physical goods with customers in the Dubai mainland area. Moreover, they cannot offer certain services or engage in some kinds of business activities. To learn more about what you can and cannot do in your mainland office with a free zone license, speak to business setup consultants in Dubai.
Get in touch with the best business setup consultants in Dubai, UAE
Free zone company owners wishing to rent an office in mainland Dubai need to know the free zone authorities that offer such a benefit. If you have a mainland expansion plan, it is better to select a free zone in the UAE that permits the renting an office space in the mainland area. Highly qualified business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can advise you in this regard. Only an experienced consultant like JBC can help you navigate the complexities of business setup in Dubai.
We can support you by walking you through the steps involved in registering a company in Dubai’s free zone and obtaining a free zone NOC for the mainland office. JBC has a team of highly qualified consultants who can assist you in making decisions such as choosing between the free zone & mainland, selecting business activities, advising on the legal structure and licensing costs etc. We also provide PRO services for residence visas, investor visas, Golden Visa and Green Visa. Book a consultation with us today to take your business idea to the next level.