New investors can discover limitless opportunities to set up any type of business in the UAE. All of this country’s emirates can offer the support that an investor like you needs. For example, the Umm Al Quwain emirate and its free zones dedicate the most efficient services and facilities.
In this article, you will learn everything that all investors and entrepreneurs should know about this emirate. The information that you’ll find here will allow you to understand how the business setup process is done here. Besides, you can also learn about the benefits and facilities that UAQ offers. Let’s observe:
- Basic information about the Umm Al Quwain emirate.
- Types of company formation that you can choose in Umm Al Quwain.
- Top reasons why you should set up your business in Umm Al Quwain Free Trade Zone.
- What other benefits does Umm Al Quwain Free Trade Zone offer?
- How many types of licenses are available in UAQ FTZ?
- The process to set up a business in the emirate of UAQ.
- What are the requirements for setting up a company in UAQ?
- What do you need to know about the license renewable procedure?
- How much can cost to set up a company in Umm Al Quwain FTZ?
- How can Connectfz help you set up your company in Umm Al Quwain FTZ?
1. Basic information about the Umm Al Quwain emirate.
UAQ is one of the seven emirates of the UAE, and also one of the best ones to do business. You can find Umm Al Quwain located 45km from Dubai. It has a surface of 777 km2, which means it has small dimensions. However, that is not an obstacle for this location to become a successful business hub.
Although this place is widely known for being a perfect destination for tourists, it’s also known for welcoming many investors. Whether you are a national or a foreign investor or entrepreneur, here you will find the business opportunity your need.
Setting up any type of company in this emirate means reaching success in a matter of time. Besides, it provides what you need to get your business started, including facilities, licenses, support services, and more. Therefore, here you will learn some relevant information about how to set up a business in this location.
Here you can learn about the free zones you can find available in Sharjah, Ajman, and Ras Al Khaimah.
2. Types of company formation that you can choose in Umm Al Quwain.
One of the advantages you can find in UAQ is the variety of available options in all aspects. For example, you will have many types of company formation options to choose from. The main jurisdictions available are UAQ Free Trade Zone and UAQ Mainland. Regardless of the one you select, you can count on many advantages in each of them.
However, it is important for you to choose one that suits your kind of business better. Otherwise, you might find certain disadvantages if you select the wrong jurisdiction or type of entity. Therefore, let’s discover some basic information about each option to see which one can fulfill your business needs.
2.1. Umm Al Quwain Free Trade Zone.
The most popular jurisdiction in Umm Al Quwain is the UAQ Free Trade Zone. It’s the only available free zone in this emirate since the geographical dimensions are not as large as others. Nonetheless, it is among the most efficient free zones in the UAE. It provides the necessary conditions for building new businesses every day.
2.2. Umm Al Quwain Mainland.
If you prefer to choose another type of company formation, you can choose UAQ Mainland. In this jurisdiction, you’ll be able to select one of the many options that you have, which we’ll see below. The most popular industries in UAQ Mainland are construction, trading, and many others. The Department of Economic Development is the main authority here.
2.3. Types of business structures that you can set up in UAQ.
You should learn about the different types of business structures allowed in this emirate, which are these:
- Limited Liability Company (LLC): it is the most common type of company structure that you will find in UAQ. If you want to establish an LLC, you must have at least 2 partners (there’s a maximum of 50 partners allowed). Each partner is liable only to the extent of their shares.
- Partnership Company: in this case, 2 or more partners are liable for all their money in the firm’s obligations.
- Joint venture: as for this company structure, there can be 2 or more partners to share profit or loss. Besides, this type of company is limited to the relationship between the partners.
- Private Joint Stock Company: the minimum number of founding people required for this type of business structure is three. Also, it also requires those people subscribed by the founding capital in full. These people are responsible for the extent of their shares in the capital.
- Public Joint Stock Company: and lastly, there is this type of company structure. In this case, the capital is divided into shares of equal value. Furthermore, the partner is only liable to the extent of their contribution to the total money.
Here you can learn about some tips to complete the company registration process in Umm Al Quwain successfully.
3. Top reasons why you should set up your business in Umm Al Quwain Free Trade Zone.
The many benefits that investors can obtain are the main reason why this free zone is so popular. In other words, Umm Al Quwain FTZ offers the necessary support services and facilities that all businesses need to grow. Therefore, let’s now take a look at some of the main reasons why UAQ FTZ can be your ideal place:
- Both the setup and incorporation processes are easy and quick.
- This free zone is known for being a strategic business location in the UAE.
- There are countless opportunities to carry out different business activities.
- You can find a great variety of business licenses.
- To finish the incorporation process, personal presence is not a requirement.
3.1. The setup and incorporation processes are easy and quick.
This is one of the main advantages that this emirate has when setting up a company in it. The company incorporation process only takes a few easy steps and documents, which we will see below. Another good thing about this process is the time it takes, which is usually 3 or 5 working days.
In order to complete the incorporation or setup process, you will need to make key decisions. For example, you must choose between several options when selecting a license, a company formation, and facilities. Nonetheless, you can also make this process easier with a consultancy agency’s help.
3.2. UAQ Free Trade Zone is also a strategic business location.
Another important advantage of setting up a business in Umm Al Quwain is the geographical location of the emirate. It is a very convenient place due to the global reach that investors can have here. Besides, this emirate developed modern infrastructure to allow companies to become more efficient and develop their activities with ease.
More importantly, UAQ FTZ offers the best conditions for running a business efficiently, just like other popular locations. Besides, investors and entrepreneurs can do business with more than 2 billion potential customers. It’s possible for them to do business across the subcontinent, the MENA region, and the European and Far East markets.
3.3. Investors can choose between lots of allowed business activities.
Just like in many other emirates, there is a wide variety of business activities that investors can develop in UAQ. Some of the most common industries that run their businesses in Umm Al Quwain are the following ones:
- Oil and gas.
- Media and entertainment.
- General trading.
- Accounting and auditing firms.
- Construction and contracting.
- Tourism and hospitality.
- Manufacturing industries.
- Real estate.
- Educational institutions.
- Healthcare businesses.
- Technical services.
- Agriculture and fishing.
- Financial institutions.
- Cargo and freight-forwarding companies.
- Law firms.
These and many other types of industries are allowed to carry out activities related to their sectors. However, there might be some exceptions according to the local regulations.
3.4. There is a great variety of business licenses available in the free zone.
In this free zone, you will be able to discover different types of business licenses available for you. For example, you can apply for a commercial license or the general trading license. Other available licenses are the service license, industrial license, consultancy license, freelance permit, and microbusiness license.
Besides, another attractive element of the Umm Al Quwain FTZ is the affordable prices for obtaining any business license. Also, the process for applying for them is simple and quick. If you want to learn more about it, you can ask for your partner’s help. In addition, you can find more information about these licenses below.
3.5. Personal presence is not a requirement to complete the business setup process.
Among the best advantages that you can have in UAQ is the way in which you can complete the setup process. In this emirate, you can whether complete this process in a face-to-face way or remotely. In other words, it is not necessary for the investor’s personal presence to finish the incorporation process.
If you are in another location, city, or abroad, you can be sure that it will not be an obstacle to achieve your goal. However, it is essential to sign all necessary incorporation documents and handle them to your appointed agent. This agent will have the responsibility of completing the process on your behalf.
Here you can learn about some reasons why Umm Al Quwain Free Trade Zone can be your ideal business location.
4. What other benefits does Umm Al Quwain Free Trade Zone offer?
Besides the ones that we previously mentioned, here are some other reasons to choose Umm Al Quwain:
- 100 percent of foreign ownership.
- There is a full exemption from corporate and personal tax.
- 100 percent of repatriation of capital and profits earned by the company.
- There are business-friendly regulations and rules to benefit the investors.
- There are no restrictions on hiring foreign employees and workers.
- Zero investment restrictions in any sector.
- UAQ offers world-class facilities and infrastructure along with 24/7 security and total connectivity.
- Among the available facilities, investors have access to pre-built structures, warehouses, office space, and many more.
- All investors and entrepreneurs can count on the complete support offered by the government, especially startups and SMEs.
- A visa deposit by employees and staff of your business is not a requirement.
- There is a concession for trading companies provided by the seaport authorities at the UAQ Free Trade Zone.
Here you can learn about some vital elements that you should take into consideration before choosing a business location.
5. How many types of licenses are available in UAQ FTZ?
Depending on the type of business activities you choose, you will have to select a suitable license to cover them. In Umm Al Quwain Free Trade Zone, you will be able to choose among five main licenses. Each of those business licenses enables different activities. That is why you must carefully choose your activities before applying for a license.
5.1. Commercial or trading license.
This is the most common business license in the Umm Al Quwain FTZ, and it’s also easy to obtain. Investors and entrepreneurs that get this type of license can carry out several commercial-related activities legally. For example, this license covers activities like importing, exporting, distributing, and store of products and goods.
The items or products that the license will cover must be specified on the same license. Also, remember that this license can only have 3 different product lines or a maximum of 10 similar product lines. This is also one of the most affordable licenses; you can get it for AED 13,500 approximately.
5.2. General trading license.
If you already have a commercial license, you can also apply for a general trading license. With this type of license, you will be able to trade a wider range of products and goods. The license costs around AED 20,500 and it can only be obtained under a commercial license.
5.3. Service license.
On the other hand, if you desire to operate a business related to services, you’ll need to get this license. The main reason for this is that it covers certain activities like logistics, courier services, car rental, travel agency, etc. Other activities that you can carry out with a service license are tour services, insurance services, and many others.
Just like the other licenses, this one will specify the activities that you will carry out within the free zone. If you are interested, you can apply for this license by submitting your documents and paying an affordable price.
5.4. Industrial license.
Another license that Umm Al Quwain Free Trade Zone offers is the industrial license. With this document, you will be able to perform different industrial activities. For instance, you can import raw materials for the manufacturing, processing, assembling, and packaging of products. This license also covers the activity of exporting products once they are finished.
Besides, this is also among the cheapest business licenses in the UAQ Free Trade Zone. Investors can obtain this license by paying a fee of AED 7,000 approximately.
5.5. Consultancy license.
If you want to set up a consultancy business, you must obtain a consultancy license. Once you have it, you can operate different consultancy businesses, such as legal consultancy, tourism consultancy, and many more. Among other activities, you can carry out financial consultancy, and similar consultancy-related activities.
All entities that offer professional or expert advice can apply for this license. Besides, this document is also issued to all manner of professionals, which includes craftsmen and artisans. The cost for applying for the consultancy license is around AED 23,900.
5.6. Freelance permit.
And lastly, there is a freelance permit for those professionals who want to carry out certain activities individually. Some of those activities that this license covers are related to different sectors, such as media, film, and technology sectors. Therefore, this permit is also issued to creative roles, talent roles, and selected administrative roles.
The cost for obtaining this different type of license is AED 8,000. Besides, it is only available for those who want to conduct a business in one’s birth name.
Here you can learn about the available business licenses in Sharjah and the process to apply for them.
6. The process to set up a business in the emirate of UAQ.
If you have decided to establish your company in Umm Al Quwain, there are a few steps you must follow. All of these steps are valid for all types of company formations available in UAQ. However, some requirements may vary according to each type of formation. Let’s take a look at them:
6.1. Choose your business license.
After you choose your business activities, you must select a type of license that fits and covers them. You’ll be able to choose between the available licenses, which are commercial, general trading, service, and industrial licenses.
Also, you can opt for a freelance permit in case you desire to become a freelancer in UAQ. Or in case you want to set up a low-budget business, you can apply for a micro business license. This first step will be vital to start a good business setup process. Therefore, you should consider all options before you choose one.
6.2. Choose your type of entity.
As we mentioned before, there are several types of entities that you can choose to start a business in UAQ. But if you choose to set up in the UAQ Free Trade Zone, you’ll only have three main options. These options are FZE (Free Zone Establishment), FZC (Free Zone Company), and a branch of an existing company.
None of those options require any local sponsor if you set up your company in UAQ Free Trade Zone. Also, remember that you can establish a branch of an existing company, which can be a UAE or a foreign company. Besides, all foreign nationals can have and enjoy 100% ownership rights over their companies.
6.3. Select the facilities that your business requires.
Other elements that must fulfill your business requirements are the facilities that you choose. In Umm Al Quwain, you can have access to many different facilities that can fit your business. For instance, you will be able to choose from a variety of warehouses, offices, and suitable land.
If you will build your company in UAQ Free Trade Zone, you will find a variety of available packages. All of those packages include a shared workstation since it is the minimum requirement for setting up a new company.
6.4. Submit the necessary documents to register your company.
Once you have chosen your license, your type of entity, and the facilities you need, you must prepare your paperwork. Each type of company formation will require different documents. However, they all require some general documents, such as passport copies, passport-size photographs, signed and filed incorporation documents, etc.
If you desire to know more about the required documents, you can check them below. Nonetheless, it is always suggestible to learn more about them with a specialist. Make sure to contact your partner or the relevant authorities to ask for more information about this matter.
6.5. Make the payment and receive your business license.
Lastly, you need to make the required payment. Right after submitting your documentation, the free zone authorities will raise an invoice whereupon payment. Make sure to check on every little detail before paying for anything. After paying the necessary fees, you can consider the registration process successfully completed.
Now, you have to wait for the UAQ Free Trade Zone Authority to issue your license. Once this step is done, you’ll be able to receive your license and operate your business within the free zone. Also, remember that you can address any queries to the relevant client relationship manager.
Here you can learn more information about the company formation process in the Umm Al Quwain Free Trade Zone.
7. What are the requirements for setting up a company in UAQ?
In order to complete the business setup process, you must meet some requirements and submit certain documents. These requirements and documents will vary depending on the type of company formation that you want to set up. There are three main options, which are Free Zone Company, Mainland Company, and a branch office.
7.1. Required documents for setting up a free zone company.
If you want to set up a free zone company in Umm Al Quwain FTZ, you must submit these documents:
- Your application form.
- A few copies of the shareholders’ and directors’ passports.
- A copy of the manager’s passport.
- The Memorandum and Articles of Association.
- Proof of address of each shareholder.
7.2. Required documents for setting up a mainland company.
On the other hand, if you prefer to establish your company in UAQ Mainland, these are the required documents:
- A few copies of the shareholders’ and directors’ passports.
- Some copies of the CV and passport of the general manager.
- The notarized and attested Memorandum and Articles of Association.
- The lease agreement for the workspace (it must not be less than 550 square feet).
- The notarized and attested Power of Attorney appointing the legal representatives of the company.
7.3. Required documents for setting up a branch office of an existing company.
And lastly, the other available type of company formation is the branch office of a local or foreign company. This alternative will require the following documents:
- Your application form.
- A copy of the manager’s passport.
- Proof of address of the manager.
- The certificate of incorporation.
- The Power of Attorney and Board Resolution.
- The Memorandum and Articles of Association.
Here you can learn about the available free zones in the UAE and a brief comparison between the cheapest ones.
7.4. Additional information regarding the required documents.
There are three main requirements that the investor must meet when submitting the documents:
- Firstly, documents for branches should be legalized and attested by the UAE embassy or consulate where the parent company exists. Furthermore, they should be also legalized and attested by the Ministry of Foreign Affairs in the UAE.
- Secondly, all legal documents have to be sealed or initialed in case they have more than one page.
- Thirdly, corporate shareholders should also submit the same documentation as required for the branch office option.
Here you can learn about the application process to obtain a business license in the emirate of Ajman.
8. What do you need to know about the license renewable procedure?
It is mandatory to renew your business license annually, which is why it’s most likely you’ll need this information. To complete the Umm Al Quwain free zone license renewal process, you’ll need to submit a new copy of the Flexi-desk lease agreement. Along with the submission of this document, you also need to process the required payment.
Nonetheless, there is an advantage that you have to make the process easier for you. Just like the business setup process can be done remotely, the license renewal license can be done this way too. Another good thing is that audit reports will not be necessary. Besides, the renewal process only takes a few days (usually 2 or 3).
9. How much can cost to set up a company in Umm Al Quwain FTZ?
The emirate of Umm Al Quwain also has the advantage of offering a low-cost business setup. However, costs can vary according to several key elements. For instance, the jurisdiction or location can make a significant difference when calculating the business setup cost in UAQ. Also, other factors can influence it, such as the type of license, facilities, legal structure, etc.
If you’re going to set up your company in UAQ Free Trade Zone, you need to know its cost. In this free zone, setting up a business can cost between AED 13,500 and AED 27,500 approximately. On the other hand, if you choose to set up your business in UAQ Mainland, the company setup cost could be around AED 43,900. It’s also important to consider other elements, like the Umm Al Quwain free zone license cost, fees, and approvals.
Here you can learn about the way in which you must complete the company formation process in Ajman Free Zone.
10. How can Connectfz help you set up your company in Umm Al Quwain FTZ?
Having a business partner by your side is the most convenient thing to do to speed up the company setup process. Besides, if your partner is Connectfz, you can obtain many more advantages when establishing your business. For example, you can obtain the information and guidance you need to complete all procedures efficiently.
With our help, you can also select the most suitable business location for your business. In addition, you will be able to choose between the many packages we offer. Our packages include all vital elements that you will need, such as business licenses, visas, facilities, and more.
Furthermore, you will be able to request more services after you set up your company in UAQ. For example, you can enter the local market in a matter of time with our UAE market entry services. Or if you want to upgrade your HR department, our HR consultancy services will be useful for you. Contact us and discover many other available services for you.
Would you like to contact Connectfz to know more about the company setup process in the UAE emirates such as Umm Al Quwain? If you have any question, do not hesitate to call us on +97143316688 or email us at firstname.lastname@example.org, and you will talk to one of our representatives that will gladly answer all of your questions.