Free-Zone vs Mainland: The Cash-Flow Lens

techadmin

Jul 16, 2025 — 1 min read

Licencing, visas, banking—founders compare zones, but overlook working-capital mechanics.

Cash-Flow Factor	Free-Zone	Mainland
COD settlement lag	+3–7 days*	Same-day
Import duty timing	Pay on re-export	Pay at port
Local bank clearing	Often T+1	Real-time

*Some courier partners batch-settle free-zone collections weekly.

Decision Tips

Draw a CCC table for both setups—extra days equal real cash.
Add zone renewal fees (AED 10–15 k) into your forecast.
Factor diversification—some firms hold free-zone IP but mainland ops.

Keywords: free zone UAE, mainland company, working-capital difference, COD settlement, business setup cash flow
Hashtags: #KlubAI #FreeZoneVsMainland #CashFlow #BusinessSetupUAE #WorkingCapital

Rules differ by zone; confirm specifics before deciding.

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