Mainland companies in the UAE are allowed to operate anywhere within the country and are eligible to work directly with government entities and bid for local tenders. They require a physical office space, and there is no restriction on the number of visas that can be obtained, provided the office size justifies the quota. While 100% foreign ownership is now allowed in many sectors, some activities may still require a local service agent.
On the other hand, Free Zone companies are typically restricted to operating within their specific free zone or outside the UAE. They offer 100% foreign ownership with no need for a local partner, and are ideal for businesses focused on international trade or services. Free zones also offer cost-effective setup options like flexi-desks or virtual offices. However, these companies are not eligible for government contracts, and visa quotas are usually limited based on the license package selected.