Mainland companies can do business anywhere in the UAE — with other mainland businesses, with free zone companies, and with government entities — without the supply limitations that apply to free zone entities. The trade-off: mainland companies are fully subject to UAE corporate tax at 9% on taxable income above AED 375,000, and must comply with all FTA regulations without the qualifying income concessions available to free zone businesses. Since 2021, 100% foreign ownership is permitted for most mainland business activities, removing one of the historical reasons to prefer free zones.
See also: Free Zone, Corporate Tax (CT), Department of Economic Development (DED)
