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Société de zone franche
A company established within a designated free zone in the UAE or other GCC states, benefiting from 100% foreign ownership, zero corporate tax (historically), customs duty exemptions, and streamlined licensing. Free zones operate under their own regulatory authority independent of the mainland commercial system. The UAE alone has over 45 free zones, each specialising in specific sectors — DIFC and ADGM for financial services, DMCC for commodities, JAFZA for logistics, and Dubai Internet City for technology.
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A free zone company cannot directly conduct business on the UAE mainland without either establishing a mainland branch, appointing a local service agent, or using a mainland distributor. However, companies in financial free zones (DIFC, ADGM) can provide financial services to mainland clients under their respective financial services authority licence.
DIFC (Dubai International Financial Centre) is a financial free zone governed by common law with its own courts and DFSA regulator — ideal for banks, funds, and financial services. DMCC (Dubai Multi Commodities Centre) is a general-purpose free zone focused on commodities, trading, and professional services, governed by UAE civil law. The choice depends on your business activity, target clients, and regulatory requirements.