Free Zone company or onshore company it is the company from 100% participation of the foreign capital. Limited place of conducting business: free zone area and the territory outside the UAE. So, that kind of company can’t conduct activity in the territory of the Emirates, except free zone areas where it registered. Allowed to sign contracts between the companies registered in different zones. If free zone company wishes to sell the product in UAE it has to sign the contract with special distributors.
Offshore company has no right to be engaged in activity in all territory of the UAE. The offshore is forbidden to work with other companies (except offshore) registered in the UAE, but it is authorized to have accounts in banks of the UAE.