Types of Licenses Available in Umm Al Quwain

by commitbizadmin 03, Apr 2020

Types of Licenses Available in Umm Al Quwain

Umm Al Quwain was operating as an autonomous body and promised to increase within the next few years as UAQ is offering so many services, facilities and advantages to local and foreign investors. Different business activities require different types of licenses.

Here are different types of licenses required for setting up a business in UAQ

1. Trading License  This category contains two forms of License. 

⮚Commercial License

A commercial license that allows the import, export, distribution and storage of products, can have ten similar or three variable product lines.

⮚General Trading License

A general trading license makes trading viable in a vast range of sectors, excluding few ones such as crude oil, alcohol, pharmaceuticals and tobacco. Along with that entity that offer expert or professional advice require a consultancy license.

2. Industrial License – This License allows businesses to import raw materials so that they can produce, store, assemble and then pack goods according to their Industrial License and can also export the packed product.

3. Consultancy License

Companies that offer expert or professional advice require a consultancy license.

4.   Premium Consultancy

This License allows consultancy across various sectors that include Real Estate, Tourism, Oil and Gas Engineering, Legal, Financial, Aviation, Investment, Shipping and Logistics.

5.   Micro Business License

Microbusiness license is the best option for you, If you don't need a visa or a physical office, and your budget is small. 

6.   Freelance License

With the help of a freelance license, one can conduct business in their birth name. The License is designed for people who function in technology, media and film sectors, and is issued to talent, creative and selected administrative roles.

7.   Service License

A service license permits activities such as logistics, courier services, travel agency and car rental.

Documents Required for Trade License

  1. You need to fill an application form.
  2. Passport copy of shareholders, directors (clear colour copy).
  3. Passport copy of the manager (clear colour copy).
  4. Proof of address of the shareholder. You can give any address proof (utility bill/bank statements.driving License etc.).
  5. Proof of address of the manager. Give any address proof (utility bill/bank statements.driving License etc.).
  6. Memorandum & articles of association. Specimen provided for FZE/FZC by UAQ free trade zone.
  7. Certificate of incorporation (legalized).
  8. Board resolution & power of attorney (legalized).

Steps To be Fallowed To Obtain a License in UAQ

1.Determine the Type of License

First and foremost, determine which type of license depending on the business operation you will be undertaking. The requirement is different for any form of business license, and so are the costs.

2. Choose the Business Entity

There are three types of entities available in Umm Al Quwain Free Zone:

  •  Free Zone Establishment: Small companies that have a single shareholder can go with a free zone establishment (FZE) as the entity
  • Free Zone Company: Bigger companies that have 2 to 50 shareholders can choose a free zone company (FZC) as the entity
  • Existing Company: The third option would be wanting to set up a branch of an existing company

3. Choose the Required Facilities

Decide upon the company office, land suitable for the business, warehouses and other amenities that may be required for the business.

4. Submit the Required Documents

Registration of Trade Name of the activity by applying to the respective authorities.

5. Pay the License Fee

While providing the documents, the police will notify you where and when to make the required payment.

6. Collect the License and Start your Business

Once all the documents have been verified, and fees have been made, the UAQ free zone authority will issue your License, and you can start your business operation.

Umm Al Quwain Free Zone License Fees

Total Cost of setting up a business =License cost+ Rent+ Registration+ Consultant Charges+ Visa Cost

Particulars

Cost(in AED)

Trading License

27,500

Consultancy License

21,000

Premium Consultancy License

32,500

Service License

21, 000

Micro Business License Fee

 13,500

Freelance Permit License Fee

16,500

Commercial License

 20,500

Commercial Trading License (Renewal)

18,500

General Trading License (Renewal)

25,500

The eligibility of visas is directly related to the office space. The below table gives some information about visa eligibility according to physical office space.

Particulars

Visa Eligibility

Flexi Desk for Micro

No Visa

Flexi Desk for Start-Up package

1 Visa (For investor Only)

Flexi Desk for Trading/ Consultancy

2 Visas

Flexi Desk for Premium or General Trading

3 Visas

Renewal of Licenses

If you are doing business in Umm Al Quwain, you must renew your business Trade license annually. Investors in UAQ cannot continue their business activity after expiration of activity license and can impact you with a massive penalty if you continue without renewing. Delay in applying for renewal of the trade license will result in a penalty of freezing all of your trade activities, may ban your business license as well as levies penalty.

Cancellation of License

Your License can be cancelled or can be renewed as per your need. Furthermore, for the cancellation of a business license, you need to follow these steps.

  • Approve the company liquidation by arranging a meeting with the General Assembly of the company.
  • Submit Auditing reports to general liquidates the company
  • Advertise the cancellation and liquidation of the company in the newspaper
  • Finally, Obtain a Certificate of dissolution from Register

Why commitbiz

We at Commitbiz will help you to choose the type of License. We also help you in selecting a suitable infrastructure and location for business. If you decide to start a business, take help from our experts for a hassle-free process. We are overwhelmed to help you. Feel free to contact us!