What is the difference between mainland and free zone companies in the UAE?

Mainland companies in the UAE can operate anywhere in the country and can do business directly with the UAE market, while free zone companies are restricted to operating within their respective free zones. The main advantage of free zone companies is a 100% ownership for foreign investors. In my years in Dubai, I've seen many businesses choosing free zones for their tax benefits, but mainland companies can expand their reach significantly. Important: Evaluate your business needs before making a choice!