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Free Zone companies in the UAE are established within designated free trade zones and operate as limited liability companies under the specific rules and regulations of the respective Free Zone authority. These companies benefit from 100% foreign ownership, have the full freedom to repatriate profits and capital, and are subject to fewer regulations compared to mainland businesses.
Mainland companies in the UAE are incorporated under the jurisdiction of the Department of Economic Development (DED) and can operate across the entire UAE market without any restrictions. These companies enjoy 100% foreign ownership and have the flexibility to engage in direct trade and commercial activities within the local market. While Mainland businesses may face more regulatory compliance requirements than their Free Zone counterparts, they also gain access to a wider customer base and eligibility for government contracts and projects.