Free Zone Licence:
Free Zone businesses are located in designated areas where they can conduct business freely, with no restrictions on the type or volume of goods sold. However, for commercial trade licenses and trading physical goods, Free Zone companies cannot conduct local UAE mainland business directly. For businesses in the Freezone to trade with the UAE mainland, they must do so through a distributor or agent. They cannot trade outside of their designated area. If a business chooses to do this, then they will be charged 5% import duty on local invoices.
Mainland Company:
An onshore establishment is a company set up in the UAE that has been licensed by the Department of Economic Development (DED). An onshore company may conduct business locally as well as internationally without any restrictions.