Simple Steps to Start a Company in Umm Al Quwain

Published: 02 Apr 2020

Last Updated: 23 Sep 2025

By admin

The Umm Al Quwain is the newest kid on the block. It is located close to the Dubai Airport and even closer to Sharjah in the Emirate of Umm Al Quwain. Foreign investors wanting to open a company in UAQ will be interested in finding out if they will benefit from the same legal status and facilities as in any other UAE-free zone.

There are two leading jurisdictions in which one can set up their business in UAQ, which are, the mainland and free zone. For business setup in UAQ mainland, one needs a local sponsor, and for business setup in the free zone, an ex-pat can hold 100 percent of shares of his business.

Corporate Entities in Umm Al Quwain

The following are the business entities used in UAQ.

Limited Liability Company – Shortly known as an LLC Company, one requires a minimum of two, and a maximum of fifty partners are required to set up. Every partner is liable only to the extent of their shares in the capital.
Partnership – In this type of business setup in UAQ, two or more partners are jointly liable for all their money in the company’s obligations.
Joint Venture – In this type of company formation, there are two or more partners to share loss or profit.
Limited Partnership – In this type, the capital is divided into shares of equal value.

Benefits of Company Setup in UAQ

These are the benefits of company formation in Umm Al Quwain:

No currency restrictions.
100 percent foreign ownership.
Excellent customer support.
0 percent personal and corporate tax.
Ideal location for micro and SME.
No limits on hiring foreign employees.
100 percent tax exemptions within the UAQ free zone.
A wide range of business activities are allowed.
Modern and investors friendly rules and regulations.
Strategic location with access to over 20,00,000 customers.

Licenses Available in Umm Al Quwain

Check out the various trade licenses in Umm Al Quwain you can avail of –

Consultancy License - Under this license, one can carry out consultancy activity. Such as IT services, management consultancy, accounting services, and HR consultancy services.
Trading License – This type of license is issued to carry out simple commercial activities in UAQ like trading.
Freelance Permit – This type of license is issued to those who have professional expertise such as photographers, musicians, event planners, performers, and much more. Under this, education proof is needed to get the license.
Micro Business License – This license is appropriate for those who would like to begin with a low budget and do not need a physical office in the UAE or a visa. It is almost equal to an offshore license.

Why Start a Company in UAQ?

Because Umm Al Quwain is the best place in the UAE to start a new business, therefore know some of the reasons to start a company here.

You can form a company without being present in the UAE (using the consultant’s services).
3 licenses for businessmen (Premium Consultancy, Micro Business, Freelancer Permit).
Also accessible businesses for single professionals.
A high range of economical options is available
Allows some prohibited business of UAE.

Cost of Starting a Business in Umm Al Quwain

It includes –

Also the Consultant Fees
In addition Visa charges for 2.
Furthermore, this is also paid every year.
Office Rent- It depends on the size of the office.
License - It depends on the chosen license or business activity. This is paid every year.
Registration- Establishment card, name reservations, registration forms. This is a one-time payment.

Download our free guide on setting up a business in UAQ.

How can we help?

We at Commitbiz will assist you with setting up a business in Umm Al Quwain Free Zone and Mainland. Our other services include –

Corporate Secretarial Services
Accounting and Bookkeeping
Intellectual Property
Business License
Local Sponsor
PRO Services

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