An attractive business environment for companies wishing to establish themselves in this region is provided by UAE Free Zones. With many more still being built, there are currently about 50 operational Free Zones. Each Free Zone authority caters to different commercial categories.

One of the main benefits related to the establishment of a free zone is that foreigners face no restrictions in terms of ownership. In a free zone, FZA oversees companies that are fully owned by foreign investors thereby bypassing Commercial Companies Law of UAE.

The two have some similarities but also have something different between them as well. Free Zone companies operate within the UAE and are subject to regulations applicable only in the respective zones, while Offshore ones primarily aim at asset protection and tax planning purposes.

To set up a company in any free zone, licenses from pertinent FZAs should be obtained, and their proposed activities must fall within the specific commercial categories stipulated under that particular FZ’s rules of zoning. Tax exemptions, customs duty exemptions and good infrastructure are some of the advantages resulting from establishing a company in a Free Zone.