The concept of a "Free Zone" or "Special Economic Region" has been developed internationally as a model to help develop and promote business in many countries.

The UAE (and Dubai in particular) are established Free-Zones to attract trade and export companies, with a high degree of success. Many new Free-Zones have since an within the UAE.

There are 2 main types of Free-Zone corporate entities, namely:

• Free-Zone Establishment (FZE)
• Free-Zone Company (FZCO or FZ-LLC)

The main difference between an "Establishment" and a "Company" is the number of shareholders required. An "Establishment" is a single-shareholder (either a person or a company) while a "Company" is actually a Limited Liability Company and generally requires 2 or more shareholders. Both offer the same operating benefits. Depending on the Free Zone there may also be differences in the share capital requirements.

A Free Zone company can also be a Branch Office of another company. As such, the Branch Office is not a separate company but an extension of the parent company, based in the Free Zone. Branch Offices are NOT an FZE or FZCO/FZ-LLC.

The initial share-capital requirements vary between Free Zones depending on the stated purpose of the company but as a general rule the paid-up capital amount can be from AED 50,000 (approximately the) to AED 300,000 (the USD $82,000) for the majority of Free Zones. It is not required to deposit the share capital in the account. It will be a determined share capital in the MOA.