Difference between UAE Mainland & Free Zone Company Formation

UFree Zone vs Mainland in Dubai – UAE

UAE or Dubai Mainland Companies

Mainland in the UAE is also called an onshore company. It is licensed by the Department of Economic Development (DED) of the related emirate which is allowed to do business in the local market as well as outside the UAE without any restrictions.

UAE or Dubai Free Zone Companies

UAE has about 40 free zones, and the corporation can operate in the same free zone incorporated in a defined emirate jurisdiction. Entrepreneurs seeking tax advantages choose to establish a free zone.

Most Common Questions asked by our Customers

• What are the differences between a mainland and free zone company in UAE?
• Can mainland company do business in freezone?
• What is the difference between Freezone and LLC in UAE?
• What is the difference between free zone company and free zone Establishment?
• What is difference between mainland and Freezone UAE?
• What are the benefits of free zone company in Dubai?
• Does Freezone sell in mainland?
• What is the difference between Dubai and free zone visa?

Mainland vs Free Zone Company in the UAE

Free Zone vs. Mainland Companies: Key differences. Understanding mainland vs Freezone company setup options

Ownership

100 % owned by foreigners.

Office Space

Mainland: Physical office space of a minimum of 200 sq. ft is mandatory for any mainland company in the UAE.
Freezone: No office space required. virtual offices office is optional.

Business Scope

Mainland: A mainland company is free to do business anywhere in the UAE.

Freezone: Business manufacturing and selling) outside free zone not allowed

Audit

Mainland: An audit is prepared at the end of every financial year by the mainland companies.
Freezone: Auditing not required for all FZ companies.

Mainland: Depending on the size of the office or work premises, a residence visa is given.
Freezone: Residence visa granted Depending on the size of the office or work premises.

Capital requirement

Mainland: According to the legal form of business, minimum capital requirements for mainland company formation vary.

Freezone: The Minimum capital requirement depends on the emirate for a free zone company formation .

Government Authorities for Company Setup

Mainland: Required Permission from authorities like DED, The Ministry of Labour (MIL), Dubai Municipality & The Ministry of Interior (MOI).

Freezone: For the approval of any company inside its jurisdiction, free zones have their own rules, and outside the free zone, they don’t require approvals from authorities.