Free zone companies in UAE gives you 100% ownership and can enjoy 100 % tax free. The procedure and the cost for incorporating the free zone company depends on the free zone you choose and the type of the activity. A free zone company will be restricted to do direct business with the UAE local market. However, direct business with local market can be made through a distributer registered in the outside the free zone. There is no restriction for a free zone company to do business outside UAE and within the free zone. In Free zone companies can be registered as Establishment (single owner), Free Zone Company (maximum 5 shareholders) or Branch of your existing foreign company /Branch of a local company.
Source Nexconsultants