A Comparative Study of Foreign Participation in Commercial Companies of Free Zones

Sometimes countries due to the some interests, had to create a dual legal system in its territory, and separate some Areas of their territory from the mainland and expect more easier regulation for them. Although this dichotomy could be caused problems, but the benefits of it causing the country to ignore its flaws and enjoy the comparative advantages of it. One of the most important countries goals from the creation of such zones that are called generally “Free Zone” in this study, is Attracting both foreign and domestic investment .Since today commercial companies play an important role in trade and economy so vast investments occur in commercial companies form. Thus, the regulations governing the foreign participation in them that are the biggest investors in these areas are very important. This article has tried to explain the concept of free zones and establish goals. Then, study the legal status of foreign participation in commercial companies in the free zones according to available legal sources in the country and expressed differences with the mainland and with tailored compared with China and UAE free zones corresponding regulations and ultimately advantages of creating commercial companies in the free zones and barriers in the way of investors in this area are perused.