Mainland vs Free zone business setup in UAE: key difference

• Ownership
  While mainland companies may only have a maximum foreign ownership of 49%, Free Zones offer complete foreign ownership from the start.
   
• Business scope
  Free zone companies are restricted to conducting business only within the Free Zone, while mainland companies can operate throughout the UAE.
   
• Workspace
  Mainland companies must have a physical office of at least 200 sqft, while virtual workplaces are allowed for some Free Zone companies.
   
• Visas
  The number of visas a mainland company can obtain depends on the size of its workspace, while the number of visas available to Free Zone companies is determined by specific regulations of the relevant authority.
   
• Business setup approvals
  The establishment of a mainland company requires clearance from various government agencies, while each Free Zone has its own laws and regulations for its registered businesses.
   
• Company audit
  Financial audits are mandatory for mainland companies at the end of each fiscal year, while only some Free Zones require them.
   

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