Mainland / Freezone

Mainland and Freezone in Dubai simply explained

A peculiarity is that there are mainland and freezone companies in the UAE. While mainland companies are “classic” companies based in the country itself, as we know them from Europe, freezone companies are part of designated zones, in which it is possible to set up specific companies (FZCO). These companies are then subject to the special laws of the respective free zone.

Mainland

Regulation:

Mainland zone regulated by the state Department of Economic Development (DED). The mainland zone is subject to the state legal system, which protects you and your company. In return, companies abide by the terms and conditions set forth in the law.

Ownership:

LLC: 100%, but for specific activities, 51% Local ownership required
Civil Company: 100%

Trade zone:

No territorial restrictions, Mainland companies can do business anywhere within the UAE as well as outside the country.

Freezone

Regulation:

A free zone has specific corporate laws that vary from the mainland regulations. It is run by private legal entities that can change the respective rules.

Ownership

100% ownership

Trade Zone

Companies in the Free Zone are only allowed to trade within the respective Free Zone or outside the UAE.

Do you have further questions?

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