Out of the seven emirates in the United Arab Emirates (UAE) there is one whose coastlines are entirely on the Gulf of Oman and none on the Persian Gulf unlike other 6 emirates. This emirate is called Fujairah and is distinct from other emirates in the fact that it is almost complete mountaneous in terrain.
With an area of 1.5% of total UAE, Fujairah is the fifth largest emirate of the United Arab Emirates.
Economy is booming all over the UAE, and taking inspiration from Dubai and Abu Dhabi, Fujairah has also come up with its own free zone which is located around the Jebel Ali port. While typically the stake of a foreign company owner in Fujairah is limited to 49%, company setup in Fujairah freezone offers you the benefit of 100% ownership.
Business setup in Fujairah freezone and why is it favorable?
Three words-Accessibility, connectivity and Economy
Freezone of Fujairah is close to port of Fujairah, Fujairah international airport (which is the only airport on the entire east coast). Due the factors, the freezone companies have easy access to gulf ports, India, Pakistan, Iran and red sea. There are mainland services available from as far as North America, Europe, Far East and the Mediterranean. You will not be far away from major shipping routes, an exceptional port and international airport.
So what are the advantages of operating out of Fujairah free zone? Here are a few.
- Unmatched economy- tariffs are low
- Very less startup time
- Easy licensing procedures- in some cases it takes literally 1 working day to procure a license for your preferred business activity for Fujairah free zone company formation
- State policies permit full repatriation of profit and capital
- Modern and sophisticated communication system
- Opportunity for investment in shipping and agriculture, tourism
- Opportunity for investment in geological projects(rock, minerals and Oil)
- Business friendly environment and a stable currency
- Reduced infrastructure establishment costs
- Reduced overhead costs.
- Government has investor friendly policies
- Freedom to business owner to choose from wide range of investment fields
- 100% investment security
- Efficient and very cost effective investment facilities
Fujairah freezone: A brief overview
Fujairah free zone was formed in year and since then it has experienced tremendous growth with over 200 companies setting up base.
Mains sectors of operations
- Information technology
- Heating and cooling units
- Plastics and perfumes
- Trading sector
- Service sector
Exclusive befits of business setup in Fujairah Freezones
- 100% repatriation of foreign capital and profit: you can plough back all your profits to your business without paying any taxes
- 100% tax exemption: This is a blessing in disguise and it helps your business operate at 100% efficiency
- Single window clearance: It is said it takes 1 working day to get a business license in Fujairah
- Common customer duty facility available for seaport and airport: it saves the hassle for separate customs duty for seaport and airport
- No recruitment restrictions; it may not be mandatory to recruit a person of UAE dissent
- Infrastructure and real estate benefit: you can easily get office facility, warehouses to run your business and land facility
- Virtual office: This is the latest advantage, at a nominal one time setup fee, minimum annual capital requirement and refundable security deposited; you have the benefit of operating a branch of your company in Fujairah free zone, without being actually physically present in Fujairah.
So what are the feasible legal entities under FFZA?
- Branch of a foreign company, including offshore company
- Branch of a UAE company
- Freezone establishment
- Freezone company
For branch of foreign company and branch of UAE Company, there is no capital-cash physical requirement. Also there is no lower limit on number of shareholders and formation fee is nil.
This is slightly different for freezone establishment (FZE) and Freezone Company (FZC). Minimum capital requirement in case of both FZE and FZC is AED 150,000 and formation fee is AED 5000. Minimum no. of shareholders for FZE is one and for FZC is two.
Licenses: there are total five types of licenses that you can apply for depending upon the business activity you choose
- Trading (normal )license
- General trading
- Professional/service license
- Industrial license
- National industrial license
Each type of license has separate cost attached to it. You can get in touch with Commitbiz business consultants who will assist you with the licensing requirements.
Before you decide about what kind of business activity you want to get into, it is important to know about the allowed business activity in the freezone area. Import export, manufacturing, assembling, packing, distribution, consolidation, storage, processing, international business consultancy are all in the allowed list of activities.
Special licenses are required if business owners want to engage in activities with respect to petrochemical, education, oil, investment and any other special segment. Annual fee for such licenses start at AED 5000. With all these restrictions and licensing cost it is important to isolate a single area of business and build up on it.
Before we wrap up, here is quick run-through on the mandatory documentation for starting up business
- Duly completed questionnaire from freezone authority
- Certificate of registration from parent company
- Legalized certificate indicating board of directors and managing director
- Project planning document and feasibility report
- Application for utilities required for water, electricity and other amenities.
- In case you want to operate a manufacturing unit, you need to apply for environment clearance and for that you need to submit project report detailing the process.
The above documents are sufficient to get an initial approval, following which a complete set of documentation has to be submitted to the executive committee of the Fujairah chamber of commerce for final approval.
All in all, the business setup in Fujairah free zone seems like an exciting opportunity. If you have a business idea, or you want to expand your business in the UAE, look no further than Commitbiz business consultants. We have the right business acumen and local knowledge to guide you swiftly- from registration to setup to fully functional business in no time.
Want to know how we can help you better?
Write to us at firstname.lastname@example.org