The United Arab Emirates (UAE) is a federation of seven emirates. Among them, Fujairah is the fifth largest emirate and the only one which doesn’t have a coastline along the Persian Gulf. It shares its borders with the Gulf of Oman that stands as a key point in its development. Being located at a strategic position, Fujairah acts as a multipurpose port and UAE’s only access to the Indian Ocean. The emirate covers an area of 1,166 square kilometers and positions itself among the top three bunkering locations in the world. Moreover, it is a hub of tourism as it holds beaches and the Hajar Mountains. The core economic activities embrace fishing and agriculture. The city is heading towards becoming a modern industrious city and is focusing towards Fujairah 2040.
Fujairah Free Zone Authority (FFZA)
The economy in UAE is booming at a very fast pace for a few years. Be it Abu Dhabi or Dubai, or Ajman, each emirate is arising in its own sector and trying to be an investment magnet. Fujairah has also taken a step forward and came up with Fujairah Free Zone(FFZA) which was established in the year 2005, with an aim of developing the emirate as an investment hub. It believes in connecting the dots ACE – Accessibility, Connectivity, and Economy.
Fujairah Free Zone Company Types
Fujairah International Airport, FFZA, provides expansive opportunities for different business. As we know that Fujairah serves as a free zone, let’s have a look at the different types of companies that can be established here:
- Branch of a Foreign Company (including offshore)
- Branch of a UAE Company
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
Fujairah Free Zone Business Sectors
Fujairah widens the business scope for more than 200 different business sectors. Few of the main sectors of operation include:
- Information and Technology
- Textile Industry
- Gold Industry
- Recycling Business
- Perfumes and Plastics
- Trading Sector
- Service Sector
Types of Licenses Offered
Before you even decide on establishing your business firm in Fujairah, you must be clear about the business activities that will be carried out by your firm. Depending on the different business activities, different trade licenses are offered. Let’s have a look at the different trade licenses:
- Normal Trading License
- General Trading License
- Professional License
- Industrial License
- National Industrial License
- Warehousing License
- Consultancy/Service License
Fujairah Free Zone license fee comes at a very minimal cost of AED 5,000. It also provides special licenses if a foreign investor wants to engage in industries like petrochemical, education, oil, investments, etc.
Benefits of Setting Up a Company in Fujairah Free Zone Authority
Being a trade free zone, Fujairah attracts foreign investments from every corner of the world. The zone provides a wide range of benefits such as:
1. Lowest Setup Cost
Establishment of a company requires a huge capital. This statement has been proven wrong by Fujairah. Fujairah creative free zone provides the flexibility of setting up a business at a very low cost starting from AED 5,000.
2. 100% Tax Exemption
Tax is a headache that any business goes through. It becomes an obstacle in business establishment or expansion. In Fujairah, you don’t need to pay tax. This act as a blessing for foreign investors and relieves them from the heavy burden of tax payment.
3. Physical Presence
Technology plays a key role at this point as it gave birth to the concept of virtual office. Physical presence is not mandated to incorporate a company in Fujairah. For foreign investors, No Objection Certificate (NOC) is not required.
4. Fast Process
Thanks to the easy application process, company documentation and business license can be acquired within 7 days in Fujairah Free Zone.
5. 100% Repatriation of Capital and Profits
This becomes another plus point that provides the flexibility to foreign investors to repatriate all the investments and profits earned during the business tenure.
6. Multiple Residency Visas
In Fujairah Free Zone, there is no requirement of leasing a physical office up to 6 UAE residency visas.
Documents Required for Fujairah Free Zone Company Registration
To begin the process of company incorporation, there is a mandate to provide certain documents that act as a proof and suffice the legal process. Documents required for Fujairah Free Zone company registration includes:
- Certified passport copy and UAE visa entry stamp
- 2 copies of proof of address
- Bank reference letter
- Shareholders’ CV
- Company application form
Fujairah Creative City
The growth of Fujairah has not been restricted to core business industries. On the other side of the coin, Fujairah Creative City was initiated in the year 2007, to provide a platform to the ideas of the mind, creativity. Creative city provokes startups, established business working under the broad spectrum of the media industry. The industry comprises media, events, education, communicating and marketing, design, technology.
Unlike Dubai 2021, the Ministry of United Arab Emirates has set a goal for this emirate as well. The Fujairah 2040 plan is a master plan prepared to uplift the emirate’s economy to a tremendous extent. One of the main reason behind setting this plan is that by the year 2040, the emirate population is expected to exceed by half a plan. Imagine the business opportunities that it holds for the future. The plan focuses on enhancing housing, transportation, hospitality, oil and marine services.
- Ministry of Infrastructure Development would be undertaking construction of 3 main roads in Fujairah, Kalba, and Khorfakkan to increase the speed of connectivity with other six emirates.
- Dubai Investments announced the Fujairah Business Center Project to be completed by the end of 2020.
- Ministry of Climate Change and Environment (MoCCAE), Fujairah Center for Adventures signed a MoU to build the largest coal garden in the world.
- St. George’s University, Grenada, signs MoU with Government of Fujairah to expand the potential of the education industry.
On the whole, we can say that Fujairah is emerging by leaps and bounds. The Ministry of United Arab Emirates has been a constant support and is focusing on multiple aspects and trying to develop the emirate as a business destination. We can say that Fujairah has opened large options for business activities in different business categories. Do you have an out of the box business idea? Do you want to see your business growing alike Fujairah? Want to establish your business in the future business city? To understand how you need to get in touch with a business consultant expert who can answer all your queries. Commitbiz Management Consultants is a business consulting firm to guide you and answer your queries. To get your answers, do contact us – we’d be happy to answer your queries and glad to help you up setting up your business in Fujairah.