All you must know about the Umm Al Quwain Free Trade Zone

by Zaara 01, Apr 2020

All you must know about the Umm Al Quwain Free Trade Zone

Umm Al Quwain is located in the north of the UAE between Ras Al Khaimah and Ajman; UAQ is one of the most preferred tourist destinations in the UAE. Umm Al Quwain offers an ideal location for setting up businesses in the UAE. 

UAQ free trade zone is the pick for smart thinking entrepreneurs!

Why Set Up a Business in UAQ Free Trade Zone?

Simple company setup procedures, an amiable trading location, and affordable rates all come together to create an ambience that's hard to beat. Along with that, the current growth rate is to turn the UAQ Free Trade Zone into a smart industrial city and strategic economic hub by 2025.

Here Are Some of the Perks of Setting up a Company in Umm Al Quwain Free Trade Zone

The reasons for starting a company in UAQ free zone are -

  1. Zero corporate and personal tax
  2. 100% company ownership.
  3. No currency restrictions
  4. 100% repatriation of capital and profits.
  5. Cost-effective leasing options for working space.
  6. Cost-effective leasing options for warehousing.
  7. No share Capital Requirements.
  8. There are no restrictions on hiring foreign staff members.
  9. Full range of business activities permitted.
  10. High tech warehousing, land, and office space available
  11. No Visa deposit required

Company Types In Umm Al Quwain

⮚Free Zone Establishment (FZE)

FZE is formed with one shareholder, either an individual or a company. The minimum capital requirements depend on the activity.

⮚Free Zone Company (FZCO)

FZCO is created by a minimum of two and maximum of 50 shareholders, either individuals or companies or a combination of both. The minimum investment required depends on the activity.

⮚Branch Office of a Local/Foreign Company

The license allows an existing local or foreign company to open a representative office or branch within the Free Zone. The branch will be legally dependent on the parent company.

⮚Freelancer

The license allows an individual to conduct business as a freelance professional. This can be done under the individual's name instead of the brand name.

Business Set-Up Process In Umm Al Quwain Free Trade Zone

After looking into the benefits, if you have made up your mind to set up a business in UAQ free zone then let's look into the process and documents required for setting up a business in UAQ free trade zone.

Here Are a Few Steps To Start a Business In UAQ Free Trade Zone

Here’s how you can start a business in UAQ free trade zone.

  1. Choose from various types of licenses activities including trading, consultancy, freelancing, industrial, and other services
  2. Select your company's legal structure
    1. Single shareholder (FZE),
    2. Partnership (FZC),
    3. Branch.
  3. Select the required office or warehouse or plot facilities
  4. Submit the required documents, including passport copies, MoA, and proof of residence of shareholders, directors, managers.
  5. Make the fee payments
  6. Collect the licenses from the respective authorities 

Below table gives information about documents and their specifications required for setting up a business in UAQ free trade zone

Documents

No of Copies

Specifications of the documents

Application form

1

Signed by applicant

Specimen signature

1

Signed by applicants with date

Memorandum of Association

2

Self-attested by all Shareholders with a blue pen

Articles of Association

2

Self-attested by all Shareholders with a blue pen

Passport size photos with white baground

2

Photos of all Shareholders

Passport copy

1

 Of all shareholders/directors/managers

Service lease agreement

2

Signed by the Manger

Valid id card copy

1

 Of all shareholders/directors/managers

Latest utility bill copy

1

 Of all shareholders/directors/managers

Costs Involved In a Business Set Up In Umm Al Quwain Free Trade Zone

Umm al Quwain Free Zone offers an easy procedure to set up the company while providing reasonable prices that make it an attractive business hub. Below table gives you some insight regarding costs involved in setting up a business in UAQ free trade zone

Particulars

Cost

Knowledge Fee & Innovation Fee

AED 20

Commercial License

AED 20,500

Consultancy License Fee

AED 20,500

General Trading License Fee

AED 27,500

Freelance Permit License Fee

AED 16,500

Micro Business License Fee

AED 13,500

Premium Consultancy License Fee

AED 32,500

E – Channel Registration

AED 2,400

E – Channel Refundable Deposit

AED 5,000

Emirates ID application

AED 1,240

Employment / Residency Visa – In-Country or Out of the country

AED 2,500

Investor/Partner Residence Visa – In-Country or Out of the country

AED 2,500

Licenses Required For Setting Up a Business In UAQ Free Trade Zone

  1. Commercial License
  2. General Trading License
  3. General Trading License
  4. Consultancy License
  5. Premium consultancy
  6. Micro Business License
  7. Freelance permit
  8. Service license

For more information about permissions, you can take the help of experts.

Why Commitbiz

UAQ is one of the fast-growing hubs in terms of technology. If you have decided to set up a Business in UAQ free trade zone. Please contact us; we would love to help you throughout the business setup process and make your work easy peasy.