Business Setup in Fujairah

Fujairah is the only emirate located on the eastern side of the UAE (Gulf of Oman), and has, therefore, a distinct advantage as compared to other six emirates situated along the Arabian Gulf. Fujairah is well-connected to other major cities in the UAE, like Dubai, Sharjah, and Abu Dhabi, making it an ideal business hub.

In over 2 decades, the business in Fujairah has grown manifold with the influx of cross-border investors from the Gulf Cooperation Council (GCC) countries, Africa, India, USA, Europe, West Asia, and China investing in manufacturing, logistics, processing, trading, and assembling, because of the latest technology and resources available in the region.

Company Formation in Fujairah

The Emirate of Fujairah covers about 1.5% of the area of the UAE and is the fifth largest Emirate in the country. In the past, the Emirate of Fujairah was a part of the sovereign Sharjah Principality. However, since the 50s of the preceding century, it was recognized as the separate administrative unit. The individuality of Fujairah is that it is the only Arab principality located on the coast of the Indian Ocean. The Emirate of Fujairah has been vigorously developing since the last decade, and now entices foreign investments into the national economy. The Fujairah free trade zone is created to ensure the comfortable operation of international businesses on the territory of the Emirate. Today, the business people and investors from all over the world express a desire to open a company in Fujairah.

Advantages of Setting Up Your Business in Fujairah

  • Strategic location
  • A global business focal point
  • Gateway for other vast business nations
  • The modern, efficient, and sophisticated communication system
  • State policies permit full repatriation of capital and profits
  • Stable currency
  • Opportunity for investment in the tourism sector
  • Fujairah has liberal economic policies and legal framework
  • The procedures for staffing and recruitment in Fujairah are simple
  • The emirate has advanced infrastructure and efficient communication facilities at a relatively inexpensive cost
  • Fujairah supports sponsorship and visas for an affordable skilled workforce
  • Free zones in Fujairah provide for 100% foreign ownership, the exemption for import/export duties, and full repatriation of capital/profits

Business Entities in Fujairah

Like other emirates in the UAE, before 1984, Fujairah also followed its guidelines governing the actions of foreign corporate interests in the Emirate. In 1984, Federal Law No. 8 of 1984, its amendment by Federal Law No. 13 of 1988 - the ‘Commercial Companies Law” and its by-laws have been given out. The law makes it mandatory that the companies must be wholly owned by the UAE nationals or own at least 51% of its share capital must be owned by nationals, while the remaining 49% may belong to the investors. The decree provides that commercial companies established in the U.A.E must take any of the following legal forms:

1. Sole Proprietorship

An investor is permitted to practice specific types of corporate activities allowed for expats without having a national partner. Such undertakings are medical services, legal practice, engineering consultancies, and consultancies, computer consultancies and similar facilities as long as that such an investor holds a legal UAE residence permit. However, it is a condition that they should have a local services agent, and consequently, a service agency contract needs to be move-in between the investor and a UAE national.

2. Limited Liability Company

This is the most common form of corporate structure in Fujairah. An LLC can be incorporated by a minimum of two and a maximum of fifty persons whose liability is limited to its shares in the business.

3. General Partnership Company

This business entity consists of two or more partners who are jointly and separately accountable for all the firm’s liabilities. Partnership companies are confined to the UAE nationals only because partners are reliable towards the obligations of the business by all their assets, which may not apply to expats as in maximum of the cases their assets are usually in abroad.

4. Professional Company

A professional company in Fujairah is the one that practices a profession as its primary object and that partners depend on their livelihood on the conscious effort they exercise more than on earning from the business of others.

5. Joint Venture

A joint venture is the one where two or more partners agree by contract to share losses and profits of one or more commercial company, which will be passed on in the name of one of the partners.

6. Public Shareholding Company

Public Shareholding Company, also referred to as a public joint stock company (PJSC), is a company with a capital divided into equivalent negotiable shares. In such businesses, a shareholder’s liability is limited by the number of shares held by them.

7. Private Shareholding Company

A Private Shareholding Company is formed by several persons, not less than three. Unlike a public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares.

Business Licenses Issued in Fujairah

For company formation in Fujairah, one needs to obtain a business license. Business licenses can be issued within a working day in one of the following categories:

1. General Trading License

A general trading license is a little costlier compared to other licenses as it allows investors to trade in all kinds of products. It authorizes free import, export, and re-export of specified commodities in and outside the UAE. Additionally, it allows investors to avail of special permission for local distribution from relevant Government departments to continue hassle-free operations in a free zone.

2. Trading/Commercial License

Specified products subject to the regulations of the license issuing authority can be traded using this license.

3. Service License

Firms offering services like accounting firms, law firms or individual practitioners, and business consultants are issued a service license.

4. Industrial License

An industrial license permits a license holder to import raw materials, manufacture stated products, and export finished product to any country.

5. Warehousing License

With a warehousing license, investors can avail warehousing facilities on lease and use the warehouse for storage, packaging, and distribution of goods.

6. Manufacturing License

A manufacturing license can be obtained after a project is approved by a free zone authority, implemented, and fully insured for human resources and machinery. Further, the support for a manufacturing license is subject to:

  • Built-up area and open space of the project
  • Water, Electricity and workforce supplies
  • Environmental aspects related to the project

Business Activities and Required Approvals from the Authorities in Fujairah

The Municipality issues the license to practice the majority of the activities in Fujairah. However, certain activities require distinct approval from the related Ministry/Department:

Business Activity

Government Authority

Medical, Pharmacy

Ministry of Health

Air Transport and Air Cargo

Department of Civil Aviation

Financial Institutions, Banks, Money Exchange

Central Bank

New Industrial Project, Expansion

Ministry of Finance and Industry, Department of Industry

Publishing, Printing, Advertising, Newspaper, Advertising, Video Film, Photography

Ministry of Information

Education, Training

Ministry of Education

Agriculture, Veterinary

Ministry of Agriculture

Customs Clearance, Freight Forwarding, Sea Cargo

Seaports and Customs Authority

Telecommunication Equipment

Ministry of Communication

Branch of a Foreign Company, Chartered Accountants Firm

Ministry of Economy

Insurance Company

Federal Insurance Authority

Free Zones in Fujairah

Modern International Logistics and strategically promising location of the Fujairah free zone are the main factors that attract foreign direct investments into the region. A free zone in Fujairah can deal with a simplified scheme of communication with the state bodies and process of registration of the international companies. The transport availability of this free trade economic zone of UAE is worth noting separately. In particular, the following transportation lines are available:

  • Region’s largest Fujairah shipping port
  • Fujairah Airport international air harbor
  • Well-established highway service

The investors and businesspeople, through efficient solutions in the field of transport logistics, have the opportunity to optimize many business processes and to reduce the delivery time of different products. Low production costs and minimal overhead expenses will make your business project in Fujairah free zone cost-effective and profitable.

1. Fujairah Free Zone

Fujairah Free Zone (FFZ) is located adjacent to the Port of Fujairah and has access to the world’s major shipping routes, a world-class airport, and streamlined procedures. This free zone is ideal for start-ups and young entrepreneurs as well as for investors. Fujairah Free Zone authority promises an exceptional growth for new ideas and company formation in the region by making sure that they have been provided with excellent infrastructure, flexible government policies, and other customary benefits of a free zone.

2. International Free Zone Authority

International Free Zone Authority (IFZA), located next to the Port of Fujairah, is set to become a leading investment hub in the UAE. The free zone has easy access to all the Arabian Gulf Ports, and the booming markets of Iran, India, and Pakistan. IFZA is also close to Fujairah International Airport and has advantages like a strategic location with access to the world's major shipping routes, port and airport, and streamlined procedures.

Fujairah company setup can be a super-easy process with Commitbiz.

How to Start a Company in Fujairah?

Forming a company in Fujairah and its free zone areas are lucrative. However, there are several steps one needs to undertake to register their business in this Emirate. Typically, the procedure involves the identification of your business activity, registration of company or trade name, submission of legal documents to pertinent authorities, and the application of visas (if necessary).

Also, it’s important to note that the specifics of the business setup process depend significantly on the kind of licenses and permits that are applied for, as well as the forms of business that are to be established.

  1. Obtain primary approval for name and activity from Fujairah Municipality
  2. Obtain permission from the concerned Ministry/Department in case the business is of unique nature
  3. Draft up the company’s Memorandum of Association and have it notarized from the courts
  4. Capital contribution certificate is obtained from banks for cash shares and auditor’s certificate for both cash shares and kind shares
  5. Submit applications and initial approval along with a notarized copy of Memorandum of Association, tenancy contract, capital certificate, etc. to the Municipality
  6. After examination by the permissible department, the trade name will be entered in the Commercial Register and have its Memorandum of Association printed in the Ministry of Economy Bulletin. The Municipality will then issue the license

Documents Required

  • A valid business license
  • A resolution from the Board of the Company
  • Attested Memorandum of Association
  • An Article of Association from the Embassy
  • Business plan
  • Passport-sized photographs
  • Passport copy of the investor
  • Passport copy of shareholders
  • Suggested name for the business or organization
  • A deposited mandatory capital amount in the bank
  • Personal information of shareholders and investors

Our Business Setup Services in Fujairah

Commitbiz Management Consultants can help you with the following business setup services in Fujairah:

  • Company incorporation
  • Company registration
  • Local sponsorship
  • Public Relations Officer (PRO) services
  • Accounting and bookkeeping
  • Auditing
  • Tax consulting
  • Value Added Tax (VAT) registration
  • Legal advisory
  • Setting up a branch office
  • Intellectual property protection

Why Commitbiz?

Commitbiz helps entrepreneurs and firms in setting up a company in Fujairah through company registration, incorporation, and legal consulting services. Our experts take care of the banking, visa, legal, and licensing formalities, following the UAE laws. We guide you through your company formation, with your business objectives at the core.

We help you in planting your business in this booming economy by handling all the legal formalities, to help your company gain a foothold, establish free trade agreements, and ensure that you avail all the state-of-the-art facilities of the region. For company setup in Ajman, contact us – we'll be glad to assist!

Frequently Asked Questions (FAQs)

1. How to start a business in Fujairah?

To setup a company in Fujairah,

(1) obtain primary approval from Fujairah Municipality,

(2) draft an MoA,

(3) submit an application for registration with supporting documents,

(4) once approved, a trade name will be entered in Commercial Register and have its MoA printed in the Ministry of Economy bulletin.

2. Which government authority is responsible for handling business setup procedures in Fujairah?

Business setup in Fujairah is looked after by Fujairah Municipality.

3. What are the documents required to register a business in Fujairah?

  • Passport copy of shareholders, and directors
  • Attested MoA
  • Valid business license
  • Suggested trade name certificate
  • A deposited mandatory capital amount in the bank
  • Personal information of shareholders and investors

4. What are the benefits of business setup in Fujairah?

  • Strategic location
  • Stable currency
  • Liberal economic policies and legal framework
  • Affordable skilled workforce