A Free zone is a geographical region or jurisdiction which is allowed to conduct a predefined trading activity or set of activities in the UAE. The Dubai Freezone Licenses are issued based on the particular business activity of the company. Certain new free zone regions are under construction and therefore the total number of the free zone would rise in the coming years.

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Free Zone Authority (FZA) is the governing body in charge of the activities related to a Free Zone company like license issuance and operation. The Commercial laws governing the UAE mainland companies are not applicable to the Free zone companies. One of the greatest benefits of business set up in Dubai Freezone is that foreign investors can enjoy 100% ownership. Apart from complete ownership benefits, monetary benefits like complete tax exemptions, 100% repatriation benefits, absence of foreign exchange restrictions are the added benefits of Dubai freezone company formation.

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The fundamental difference between mainland and free zone is that Free Zone Company cannot conduct its operation in non-free zone without the support of a local agent whereas a mainland company freely operates its business activities anywhere in UAE. There are numerous free zones in Dubai. The basic reason that foreign investors opt for free zone venture is to get complete ownership benefits, apart from utilizing the world class infrastructure, assure their assets and relish tax exemptions.