# free zone Vs non-free zone



## HannuK (Sep 17, 2010)

I read about all these free zones and non-free zones, But what are the practical differences between these two?

I have searched but not found any good explanation, my company is located in a free zone as I understand (internet city)

thanks


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## Hash4272 (Sep 26, 2010)

if you are to open a free zone company it is 100% owned by you and you wont need a local sponsor but if you open a LLC or any other non free zone company you will need a local sponsor to open the company on a 51%/49% basis, almost all locals try to make money from this, all you would do to get 100% profit is that you do a side agreement with the local on the company and register it with the chamber of commerce or concerned authority


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## HannuK (Sep 17, 2010)

interesting, does this have any affect whatsoever on us expats just working for theese companies


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## Hash4272 (Sep 26, 2010)

well depends on your position with the company, i have seen in some cases with non free zone companies some locals if they see the company is doing good, they simply take over and bring the 51%/49% clause back, but it all depends on the how good your side agreement is, also if your company was lets say not doing good and was in debt then again the local will step in and try to take things under his/her control, i am not sure on this but i think the non free zone employee visa's are issued by authorization of the local im not sure on this though


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## wandabug (Apr 22, 2010)

When you work in a free zone you are sponsored by the free zone authority not your employer.

To apply for your driving licence or alcohol licence you need an NOC from the free zone authority.

You can change jobs within free zones as often as you want, there is no employment ban.

Companies in free zones are limited by the fz authority to the number of people they can employ.

Cant think of anything else.


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## Elphaba (Jan 24, 2008)

If you are emplyed by a freezone company then your sponsor is the freezone itself, not your employer. This allows you to move between freezone companies without receiving a ban.

This infomration should be in the Dubai Explorer book that everyone is recommended to buy in the main advisory sticky threa.
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## wandabug (Apr 22, 2010)

Oh yes, you don't need to get your education certs attested.


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## Elphaba (Jan 24, 2008)

If you are employed in a freezone company then your sponsor is the freezone itself, not your employer. This allows you to move between freezone companies without receiving a ban.

This information should be in the Dubai Explorer book that everyone is recommended to buy in the main advisory sticky thread.
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