Fujairah is one of the seven emirates in the United Arab Emirates and is known as the jewel of the middle east. It is the only emirate which is located on the eastern coast and shares its coastline with the gulf Oman. Due to the strategic position of the emirate, it operates a seaport at a colossal scale and is considered as the port is home to major shipping routes.
International Free Zone Authority or IFZA is located at the close vicinity of the port of Fujairah, and its proximity to the port plays a significant role in making the free zone a leading hub of investment. The approach used here is a highly customized one, meaning one can choose the type of service that will be required by his company and utilize it to reach a strong position.
There are many facilities that IFZA offers such as warehouses, offices, residential apartments, hotels markets etc. at a meagre cost. Opening a business in IFZA, when compared to opening a business in rest of the free zones, is more manageable and this makes setting up a business in IFZA a very lucrative option.
Why Setup a Company in IFZA?
There are lot many benefits that a company established in IFZA can avail such as low tariff rates, shorter startup time and economical overhead costs. The various benefits of the setting up a business in IFZA are:
Free Zone License and Permits
There are licenses available for many types of business activities in IFZA. These licenses are obtainable at a very economical rate. The availability of the various licenses allows a varied range of opportunities that will allow businesses from all over the world to establish a base in the free zone. After receiving the license, the company can commence its operations.
Incorporation in a Single Day
The free zone believes in the saying that time is money, and this is the reason that the company incorporation process does not take much of your time. The complete process may only take a maximum of 2 weeks. After this process is complete, the company may start conducting business.
Flexible Commercial Space Options
There are many options available for commercial spaces for license holders in IFZA. It offers a wide range of hi-tech office space solutions, warehouse facility with the warehouses of various sizes, renowned and 5-star hotels, Spacious apartments and multiple retail spaces for shopping. Some of these projects are under construction.
Physical presence not Required
To incorporate a company in the free zone, the owner does not need to be present physically in the registration office. The company even need not have a physical office in the free zone at the time of registration. They need to submit the required documents on time.
Easy to Open Bank Account
The International Free Zone Authority or IFZA has tie-ups with individual banks, which makes it easy for both corporates and individuals to have separate bank accounts in the area. These accounts are quick to open and do not require many documents.
For an investor, it is possible to take all the profit he has earned and send it back to his home country. This repatriation of profit is not feasible for all the companies established in the mainland, but due to the different and separate management of the free zones, such an act is possible.
Exemption from Taxes
The companies established in IFZA are exempt from taxes, both corporate and personal income tax. This makes setting up a company in the free zone a very viable and profitable option for any entrepreneur or businessman around the world.
The benefits, as mentioned earlier, make setting up a company in IFZA a perfect option. Now let's go through the process of setting up a business in the International Free Zone Authority.
How to Setup a Business in International Free Zone Authority?
The process of setting up a company in IFZA is reasonably simple and easy. The bulk of the process can be done online and does not require you to be physically present during the registration process. You have to submit the documents with the concerned authorities, and after a week or two, the officials will register the company. The complete process of registering a company in IFZA is given below:
1.Set a Name
First of all, you need to set a name for the company. Take special care that the name that is chosen by you is not already in use by any other existing company.
2.Obtain Required Approvals
Your business needs to be approved by the concerned authorities of the government. In case the activity conducted by your company is exclusive, special permission needs to be taken from the relevant Ministry or Department of the government.
3.Memorandum of Association (MoA)
After receiving all the required approvals, you are required to write up the memorandum of association of the company. It should be taken care that the MoA is notarized from the court.
The company must collect a certificate known as Capital Contribution Certificate and also an auditors certificate which can be obtained from the bank.
5.Submit the Application
All the documents such as the copy of MoA, all the obtained certificates, tenancy contracts need to be submitted along with the initial approvals for business registration.
6.Inspection by the Concerned Authority
After completing all the required steps, there will be an inspection done by the concerned legal department. Based on this investigation, the name of the company will be entered into a Commercial Register, and the MoA will be published in the bulletin by the Ministry of Economy.
After following the complete process, the municipality will grant the licence to commence the operations of the company in IFZA.
It can be difficult for foreigners to have complete knowledge of the company registration process in the free zone. In such a case, you should take help from a consultant who can provide you with the necessary knowledge. At Commitbiz, we have a team of specialists who will provide you with the essential information and can manage the complete, end-to-end process on your behalf, which allows you to focus on building your business. For more details, contact us today - we will be glad to be of service.