Expanding a UK catering-equipment supplier into the UAE
A UK business supplying commercial ovens and catering equipment to hotels. Richard wanted to sell directly to UAE hotels, so we recommended a mainland company and set it up with the bank account, an office address and the family's visas.
Speak to us about your situationThe situation
Richard had built a good business in the UK, but the UK market was largely absorbed — most of the hotels worth selling to were already buying from someone. The UAE was the obvious next move: a lot of hotels, more opening all the time, and a hospitality sector that buys this equipment continuously. He was relocating with his wife and step-son, and the aim was to sell directly to UAE hotels and hospitality groups. So this was a business expanding and a family moving at the same time.
Why they came to us
He was referred by one of his business contacts. He wanted a firm that understood he was selling into the UAE market itself, not just looking for the cheapest licence.
What we recommended
A mainland company. Richard's customers were UAE hotels, and selling directly into the local market is what mainland is for. Our page on setting up a Dubai mainland company explains how that kind of company works.
A free zone company generally can't sell directly to customers on the mainland without a mainland distributor, branch or licence. The UAE Government's own portal says: "Direct sales in the mainland are generally not permitted unless the company obtains the required mainland licences or approvals." To sell goods locally, it adds, a free zone company has to work through a licensed mainland distributor or set up a mainland branch or company. Both points are on the portal's page about running a business in a free zone.
For a business like Richard's, that mattered. Commercial ovens and catering equipment are physical goods, and the hotels he wanted to sell them to are in the UAE's local market. With a free zone company he would have needed a mainland distributor between him and the hotels, or a mainland branch or company as well. A mainland company meant he could sell to the hotels himself, which was the aim from the start.
Mainland fitted how Richard sells, and that is why we recommended it. An online business that isn't trading on the UAE mainland is a different case, and Stevie's online ticket-sales business went into a free zone company. Our guide to free zone and mainland companies in Dubai sets the two side by side.
At Start Business Services, where the customers are physically sitting is the first thing we settle on any Dubai setup, because that is what decides the licence. We set the company up around that, arranged the corporate bank account and an office address, and handled his wife's visa and his step-son's visa.
The outcome
The company was formed, the bank account opened, the family's visas completed, and the business began selling into the UAE. We handle the accounting, tax filing and ongoing compliance.
Thinking about a move like this?
Tell us what the business does and where it is heading, and we will tell you whether we are the right firm.
Talk to us