Introduction
Are you looking to establish a business in the UAE without being worried about tax and rent expenses? The UAE has resolved these concerns by establishing free zones in all seven Emirates. Umm Al Quwain Free Trade Zone is also one of these developed free trade zones that offers a business-friendly environment for foreign investors. Its strategic location close to Dubai Port and the international airports of Sharjah and Dubai makes it ideal for business activities. Like other free zones, UAQ FTZ provides 100% ownership and tax exemptions but the comparative operational cost is an additional factor for its preference.
UAQ FTZ offers various business entities and all of them run under the regulations of UAQ zone authority. Trading, logistics, consultancy, and industrial activities are the major businesses in this FTZ. Its modern infrastructure and amenities are used in office spaces and warehouses. The businesses can also choose the free plotting for development.
Throughout this writing guide, you will explore all aspects of Umm Al Quwain Free Zone Company Setup in Dubai.
What are the Basic Considerations for Umm Al Quwain Free Zone Company Setup in Dubai?
Before setting up a business in a free zone you need to consider the following aspects:
1. Determine Business Activity:
Before proceeding to the registration process, it is essential to finalize the business activity from the available options of UAQ FTZ. The zone offers several types, including trading, industrial work, and consulting services. According to available business tasks, the trading zone offers the following licenses:
| License Type | Description |
|---|---|
| Commercial License | Deals with import and export, distribution, and product stores. |
| General Trading License | Allows for import and export, dealing in all kinds of commodities with freedom and flexibility within the UAE. |
| Industrial License | For large-scale operations involving the import of raw materials, manufacturing, assembly, processing, packaging, market delivery, and export of finished products. |
| Consultancy License | Focuses on providing expert or professional advice, typically in two similar activities. |
| Freelance Permit | Designed for individuals in technology, media, and films, including talent, creative roles, and selected administrative roles. |
| Service License | Specifies the service provided within the free zone, covering various sectors. |
Each license has specific legal criteria for approval and method of application submission. It is advisable to seek help from a business consultant who helps in smoothing the process.
2. Choose Business Entity
- Free Zone Establishment (FZE): An individual investor or corporate entity can own this type.
- Free Zone Company (FZC): This type requires two or more shareholders.
- Branch of an Existing Company: The business doesn’t require a separate entity for extension in pre-existing business.
Before choosing an entity; consider its flexibility, cost of development, and other liability factors to make an informed decision.
Documents Preparation for Umm Al Quwain Free Zone Company Setup in Dubai
The following documents are necessary to start the registration process for a business entity:
- A passport copy of all shareholders and other managing members is mandatory. These copies should be clear and have clear signature pages of the candidate.
- Utility bills for gas, water, or electricity are also required to prove residency. The bill must be within the last three months and have the same residency address as mentioned on the application form.
- An entry permit visa is applicable if the applicant is residing in the UAE under a certain visa and is not a permanent resident of the state.
Additional Documents for Specific Activities
- The business plan is required to describe the objectives and services of the business.
- Financial statements are necessary to show the stability and financial condition of the company. In this context, the balance sheets, salary statements, and cash flow proofs help to describe the funds of the business.
Application Process for Umm Al Quwain Free Zone Company Setup in Dubai
The application process consists of the same steps for any business registration but a few additional steps depend on the type of entity.
1. Submit Application
- Online or In-person Submission: The application form can be submitted on the official website of UAQ FTZ or by visiting the nearby authority office.
- Initial Approval Process: The free zone authorities check the originality of documents and initial approval paves the way for further steps.
2. Name and Activity Approval
Choose the business name according to trade zone regulations. Mention the business activity that matches your approved license and is permitted by UAQ FTZ authorities.
Registration and Licensing For Umm Al Quwain Free Zone Company Setup in Dubai
Follow the described steps for company registration in UAQ FTZ
1. Company Registration
Company registration is the initial step that is completed after getting certain approvals and submission of required documents.
- A certificate of incorporation is the document that UAQ FTZ authority issues after verifying the documents related to company registration and entity formation.
- A trade license is also issued by legal authorities and used to perform business activities according to the approved license.
- A shareholder certificate is the description of shares of each partner in a company and proves the ownership of shares.
2. Lease Agreement
This document is a contract between local authorities and the owner. It describes the terms and conditions of local authority and the rights of the owner to settle an office or warehouse in a free zone.
- Memorandum of Association (MoA) describes the objectives, goals, and operational ways of a company under the regulations of the free zone.
- The article of association is used to mention the details of shareholder rights and the structure of management in the developed company.
Financial Considerations for Umm Al Quwain Free Zone Company Setup in Dubai
Financial considerations are those expenses that a business is required to set up in the free zone. The applicable fees for account setup are necessary to pay as follows:
1. Payment of Fees
- Registration fees are paid to UAQ FTZ to register the business and related services. The amount depends on the selected entity and setup.
- License fees are paid to legal authorities to obtain a trading license which is essential to operating the business within the free zone. The charges can vary according to the selected license type.
- Lease fees are those charges that an investor has to pay for office space, warehouse, or barren plot in the free zone. Its amount depends on the location and size of the property.
2. Bank Account Setup
Identity documents, address proof, and documents of company registration are required to open a bank account for the business’s financial tasks. Some banks may also ask for additional documents such as business plans or details of activities.
Visa and Immigration for Umm Al Quwain Free Zone Company Setup in Dubai
Here is a description of the visa process and permits that are required to live and work in the UAE:
1. Residence Visa Application
- Entry Permit: This permit is an initial document that is required for all workers, shareholders, and directors to enter the UAE and is processed by the local authority of the UAQ-free zone.
- Medical Examination: The process starts after entry approval in which the applicant goes through complete medical examination and blood screening to identify pre-existing disease. Medical certificates are acceptable only from registered medical centers of the UAE.
- Emirates ID Application: After clearing the medical examination and approval of the entry permit the next step is applying for an Emirates ID. This ID is issued by the UAE government and is mandatory to live in the country.
2. Visa for Employees
- UAQ FTZ sponsors the employees and the employer facilitates this process by providing the required documents of the employee.
- A medical certificate, application for Emirates ID, passport size photo, educational certificates, and passport copy are some mandatory documents for employee visas.
Post-Setup Requirements
1. Compliance and Renewals
- Annual License Renewal: The license needs to be renewed on an annual basis. The fee structure can vary each year for renewal and authorities require updated documents to attach to the application form.
- Compliance with UAE Regulations: Ensure that the working policies and activities comply with local laws. Check the labor law of the UAE and any other regulations according to selected services.
2. Taxation
- VAT Registration (if applicable): Evaluate annual VAT or tax return on a selected business entity if necessary otherwise, run the company on tax exemptions.
- Tax Exemptions and Obligations: Due to business in a free zone owners avail exemptions on income tax and for goods trading.
Additional Support
UAQ FTZ offers additional services to facilitate business activities.
1. Consultancy Services
- Legal and Financial Advice: Legal firms can seek guidance to set company format, terms and conditions of contract, and to resolve any dispute with other parties. Financial experts advise business owners in investing their funds and financial planning.
- Business Support Services: The experts also assist in administrative tasks such as completion of documents and approval of permits.
2. Networking and Growth Opportunities
- Business Events and Networking Opportunities in UAQ FTZ: The free zone of UAQ arranges seminars, workshops, and other business-related gatherings that cause the transfer of knowledge from professionals to new entrepreneurs.
Conclusion
Setting up a business in the UAQ free zone results in several benefits that range from professional support to relaxation in tax charges and liability terms. Consultancy with field experts allows you to invest funds in the right field. Financial advisors can enrich the cash flow of a business. Overall the free zones give a business-friendly environment that investors can not avail of on the mainland.
Frequently Asked Questions (FAQs)
No, the company can be handled from any country and presence in the UAE is not compulsory. The digital platforms for remote closing assist in conducting real-time meetings and safe transfer of legal documents.
The setup process starts after getting all approvals and document submissions. The time varies according to business type. However, a maximum of 1 to 2 weeks is enough for completion of the whole setup.
Yes, an individual can wholly own his company by setting it up in a free zone where the partnership of locals is not compulsory.
Yes, UAQ FTZ allows tax-free trading, cost-effective rents of office spaces, and supportive services for startups and SMEs.
Investors can opt for warehouses, service offices, development plots, and flexible desks for management tasks.
The business in UAQ FTZ is free from income tax and trading taxes. The companies can operate without corporate tax.
