United Arab Emirates’ Business environment is favorable for investors around the globe. UAE’s infrastructure is one of a kind that offers onshore & Offshore Company Set Up Options. If you want to open a company within the Jurisdiction of UAE, you can look up two options i.e., setting up a business in Mainland or Free zone. Let’s explore the difference between mainland and Free Zones company setup.

Difference between Free Zone and Mainland Companies?

It is the most frequently asked question by the people who are interested in business setup at UAE.

Mainland company often referred as an onshore company is licensed by Dubai Economic Development (DED) of the concerned Emirate. It is allowed to do business inside local markets and outside of the UAE without any constraints. If a potential investor wants to incorporate a business at UAE mainland, it is mandatory for his business to at least be 51pc in the name of a local sponsor and the rest 49pc can be on his name. however, recently there has been a change of policy by DED- Foreigners could now own 100% of a company with some selected professional activities, as opposed to the previous maximum equity stake of 49% but it should be noted that there are some crucial emirate industries which are exempted from these changes.