There are a total of seven Emirates in the United Arab Emirates. One of the emerging and least known Emirates is Umm Al Quwain. It is located near Dubai and Sharjah and is basically in the developing stage. UAQ is the least populated state of the UAE, and its land area is the second smallest among the state of the UAE. The Emirate is well-known for its desert landscape and unique flora and fauna and is a popular holiday destination. It is a thriving Emirate with modern infrastructure.
Umm Al Quwain, for its businesses, provides a productive, safe and secure business environment. With the simple and hassle-free business setup, establishing a commercial base in the UAE has never been simpler.
Why Set a Business in UAQ?
Umm Al Quwain is said to be a good location for micro-businesses as well as SMEs. So, the entrepreneurs should try setting up their new businesses here because it has a lot of potential for the new business persons for developing their businesses and making progress in it. Apart from this, the cost of living in UAQ is meagre, and young entrepreneurs rarely have too many resources, therefore an ideal place for business setup in the UAE.
In simpler terms, it can be said that UAQ has secured its reputation amongst foreign investors with its flexible licensing and modern management. Business setup in UAQ is one of the best low cost, hassle-free, and profitable business ventures worldwide.
Here are a few advantages of starting a business in Umm Al Quwain –
- 100% foreign ownership
- 100% repatriation of capital and profits
- No investment restrictions in any sector
- 0% corporate and personal tax
- No visa deposit needed by employees and staff of your company
- Zero restrictions on hiring foreign employees
- The simple and streamlined business registration process to enhance convenience
- Particular concession through Umm Al Quwain free zone seaport
- World-class facilities and infrastructure with total connectivity and 24*7 security
- Facilities like warehouses, pre-built structures, and office space available as per your exclusive needs
- Complete support extended by the government, especially to SMEs and startups
Company Formation in Umm Al Quwain
Commitbiz is conversant with the company formation laws and regulations in UAQ and can help you set up your business here, availing the required licenses. You can choose from among a free zone or a mainland company in UAQ.
Here is a brief description of each:
Umm Al Quwain Free Zone
Umm Al Quwain is the latest entries in the list of free zones in the UAE. It has gained immense popularity since its incorporation in 2014. Dubbed as the free zone of future, Umm Al Quwain’s stable economy, open investment climate and low costs of living and labour makes it an ideal free zone for business in the UAE. The strategic location of the free zone, which is close to the primary seaports in the UAE and the international airports of Dubai and Sharjah, adds to its popularity.
The different licenses offered under UAQ free zone are –
- Commercial license
- General trading
- Industrial license
- Consultancy license
- Freelance permit and service license
To know more about Umm Al Quwain and its free zone, click here.
Umm Al Quwain Mainland
Starting a business in Umm Al Quwain mainland is ideal, most notably for conglomerates, startups and SMEs, as it offers an attractive environment for investors. The companies can leverage from cost-effective renting/leasing option, growth opportunities, and much more.
In UAQ Mainland, activities like construction, trading and other popular business industries are thriving locally as well as internationally. The UAQ Department of Economic Development stands for providing the relevant business license as per user requirement and enables entrepreneurs to set up their own business here successfully. Like any other Emirate, the UAQ Mainland also offers business structures like Joint Partnership, Public and Private Joint Stock Company, Sole Proprietorship, Branch Office, LLC and much more.
Business Setup in Umm Al Quwain
To establish a business in Umm Al Quwain (UAQ), one needs to select a suitable business structure. There are different options one can look into. Here are the various corporate entities allowed in the UAQ.
Limited Liability Company
It is also known as an LLC and is the most preferred business setup structure. In this type, a minimum of two and a maximum of fifty partners are required to setup. Every partner is liable only to the extent of their shares in the capital.
In this type of company structure, two or more partners are jointly liable in all their money in the company’s obligations.
This type of company setup in UAQ, there are two or more partners to share profit or loss. And the company is limited to the relationship between the partners does not apply to others.
Public Joint Stock Company
In this type of structure, the capital is divided into shares of equal value. The partner is only liable to the extent of its contribution to the total money; the capital share for such a business is at least 10 million dirhams.
Private Joint Stock Company
In this type, the business requires at least three founding people and those subscribed by the founding capital in full and are responsible to the extent of their shares in the capital.
Procedure to Set up a Company in UAQ
Business Setup in Umm Al Quwain is made more accessible through short approval times, and low waiting periods. In case you are looking for a quick UAQ company registration, then here are quick steps to be followed.
1. Select a Business Activity
The first and the most important step one must take to set up a new business is to finalize the business activity as this can further lead to completing the license. Selecting an activity is essential to get a business license. Without having a license, one cannot operate a business.
2. Office Space
This step is all about choosing a workplace. You can select any type of place that suits you and is feasible for your work. One can choose different kinds of workplaces which may include an office, warehouse, workshop or land. Whatever you want depends on what you like or need.
3. Fill an Application Form
Here, an application form must be filled and sent to the authorities. After submission, you will be given an invoice. The said amount must be paid to speed up further the process of business registration in Umm Al Quwain.
4. Apply for a License
Once the fees are paid, apply for a business license. Here one must submit required documents as asked by the authorities. After getting the license, you will easily be able to apply for a residence visa, and in addition to that, you can open a bank account of yourselves too.
Business Licenses in UAQ
There are many licensing options available in the UAQ for a business. Listed below are the necessary business licenses in UAQ.
A commercial license holder can import, export, distribute and store products and can have ten similar or three different product lines.
General Trading License
A general trading license makes trading possible in a vast range of sectors, excluding a few ones such as tobacco, pharmaceutical, alcohol, and crude oil.
Business entities offer expert, or professional advice need to have a consultancy license
Micro Business License
If you do not need a physical office or a visa and your budget is low, then the micro business license is the best option for you.
With the help of a freelance permit, 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.
A service license permits activities such as logistics, courier services, travel agency and car rental.
Benefits of Starting a Business in Umm Al Quwain
Simple company setup procedures, favourable tax regime, affordable rates come together to create an environment that’s hard to beat. Here are a few benefits of starting a business in UAQ.
1. Start-of-art Infrastructure Embracing the Future
The revitalization plans confirmed in March 2019 will see UAQ become a sustainable industrial smart city perfectly associated for startups and SMEs. It has a lot to offer, whether you work in logistics or outsourcing, or setting up an R&D hub. From fintech to green energy, UAQ is your new home.
2. Low-Cost Business Operation for Manufacturers and Entrepreneurs
When it comes to economics, you’re likely to find that UAQ Free Trade Zone is a very intriguing option that may save you significant amounts of money, without sacrificing on quality. Right from trade license, office space to warehousing, the quality as well as price is better than any other Emirate.
3. Investor-Friendly Guidelines and Regulations
Thanks to forward-thinking authorities who are keen to attract startups to UAQ Free Trade Zone, there are several investor-friendly rules and regulations. Some of them are-
- No proof of capital needed to start a business
- Simple paperwork
- Modern business laws
4. Fast Business Formation
By tapping into its network of experts and consultants, you can start-up in UAQ Free Trade Zone without worrying that you’re making mistakes during the setup procedure. You can also discuss the ideal location for your business before the redevelopment’s prime locations are filled.
Our Business Setup Services in UAQ
It can be challenging to go through all these steps alone in a foreign land. Hence it is recommended to get help from company formation consultants in UAQ. We at Commitbiz are business setup consultants in UAQ and can help you with the following business setup services in UAQ:
- Company setup
- Company registration
- Local sponsorship
- Public Relations Officer (PRO) services
- Accounting and bookkeeping
- Tax consulting
- Value Added Tax (VAT) registration
- Legal advisory
- Setting up a branch office in UAQ
- Intellectual property protection
Commitbiz helps businesspeople and organizations in setting up a company in UAQ 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 help you through your company formation, with your business objectives at the centre of our ecosystem.
We help you in planting your business in this booming economy. It includes handling all the legal procedures to help your business gain a foothold, establish open trade agreements, and avail all the state-of-the-art amenities of the region. For business setup services in UAQ, contact us – we'll be glad to assist.