Free Zone vs. Mainland: Acquisition Comparison in the UAE

Free Zone vs. Mainland: Acquisition Comparison in the UAE

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Priya Sharma Broker Asked 1 month ago
What are the legal, ownership, and tax implications differences between acquiring a business in a UAE Free Zone (e.g., DMCC) versus the Mainland (DED)?
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2 Answers

Acquiring a business in a UAE Free Zone, such as DMCC, allows 100% foreign ownership, simpler setup, and generally exemption from corporate taxes, but limits operations to within the free zone or internationally. Mainland (DED) acquisitions may require a local partner for certain sectors, allow wider market access across the UAE, and are subject to standard corporate and VAT regulations. Legal and licensing requirements differ, impacting compliance and operational flexibility.
N Answered by Neil Walter | 2 weeks ago
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Acquiring a business in a UAE Free Zone like DMCC gives you 100โ€ฏ% foreign ownership, simplified setup, and often tax incentives, but youโ€™re usually restricted to doing business within the free zone or internationally. In contrast, a Mainland (DED) business lets you trade directly across the UAE market but may require a local Emirati partner (unless new reforms apply) and involves slightly more complex legal and regulatory obligations. Emotionally, Free Zones feel like a safe, streamlined playground, while Mainland ownership gives broader market access but with more moving parts and potential headaches choosing between them is a balance of control versus reach.
M Answered by M.Arham | 1 week ago
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