What is the difference between a free zone and the territory of the United Arab Emirates (UAE)?

The territory of the United Arab Emirates is defined as the area of each individual Emirate with the exception of the free zones . Depending on where you wish to incorporate your company, you must comply with rules and regulations of the respective Emirate or free zone. Both areas especially differ when establishing a company with limited liability. In the territory, it is mandatory to appoint an Emirati majority shareholder (so-called sponsor). In free zones on the other hand, 100% of the shares can be held by foreigners.


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