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Company Formation in Fujairah Free Zones

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Business in Fujairah Free Zones

Fujairah is the only Emirate to be 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. With the primary goal as economic development of the region, the free zone of Fujairah came into existence on 28th November 1987, by an Emiri Decree.

In over two decades since establishment, the business in Fujairah Free Zones has increased manifold with the influx of cross-border investors from GCC countries, Africa, India, USA, Europe, West Asia, and China investing in diverse activities like manufacturing, logistics, processing, trading, and assembling, because of the latest technology and resources available in the region. Additionally, Fujairah is well-connected to major cities in the UAE, like, Dubai (under two hours), Sharjah (90 minutes) and Abu Dhabi (three and a half hours) making it an ideal business hub.

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Fujairah Free Zone Company Formation

Fujairah free trade zone is located next to the Port of Fujairah, so company setup in the region is one of the top priorities for foreign investors as they get easy access to the Red Sea, all ports of Arabian Gulf, and countries like Pakistan, Iran and India through weekly feeder vessels. Also, on a weekly basis, mainline services arrive from North America, the Mediterranean, Northern Europe and Far East to the Fujairah port, and leave once in a week to North America and twice in a week to the Far East.

Apart from the sea links, Fujairah Free Zone has excellent connectivity via air links due to its proximity to Fujairah International Airport (the only airport serving northern Oman and Eastern UAE Coast). A combination of major shipping routes, excellent connectivity to ports and airport, strategic geographic location and streamlined legal procedures, make Fujairah Free Zone of a promising location to setup business.

Free Zones in Fujairah

Free Zone Authority is the government body responsible for registering and issuing business licenses to non-resident companies in Fujairah free zone. There are two free zones in Fujairah, these are:

  • Fujairah Free Zone (FFZ)
  • Fujairah Creative City

Fujairah Free Zone (FFZ)

FFZ is the free trading zone in Fujairah where companies can be setup their operations and avail 100% ownership, with other facilities like:

  • Ease of accessibility and personal support from the UAE management and staff
  • Excellent connectivity via air, water, and land routes (through Fujairah International Airport, Fujairah Sea Port, and road to Middle East)
  • Open lands available for lease
  • Unmatched economy (faster transactions, and shorter delivery times, and cheaper tariffs)
  • Cost-effective investment facilitation and investor-oriented policies
  • Virtual offices and custom built units
  • Excellent warehouse

Fujairah Creative City

UAE boasts of few media innovation clusters like Abu Dhabi's Twofour54 and Dubai Media City; and adding to that list of popular media-hubs in the Middle East is Fujairah Creative City, located in a sprawling 40,000 sq. meters dedicated area. Creative City is the perfect launch-pad for smaller business players who want to venture into a new territory without shelling a fortune.

Fujairah Creative City houses multi-speciality companies and freelancers involved in Media Production and Support Services, Publishing, Music & Entertainment, Audio & Visual, Media Services and Technology, media Marketing, Film Production and Post-Production, Event Management, etc.

Why Setup Business in Fujairah Free Zone?

Business setup in Fujairah Freezone offers promise of potential growth to startups and small, medium, and large enterprises, as it has defined lands for development, state-of-the-art infrastructure facilities, and flexible government policies. Fujairah free zone company setup offers general free zone incentives to foreign investors, like:

  • 100% foreign ownership an repatriation of capital and profits
  • 100% free transfer of funds and no foreign exchange controls
  • Exemption from import / export duties and low freight charges
  • Liberal economic policies and legal framework

Process for Business Setup in Fujairah Free Zones

There are certain formalities that need to be taken care of in order to fulfill company formation procedures in the Emirates of Fujairah.

General Procedures:

  • Determining the type of business activity, and a free zone that's best suited for your company setup
  • Preparing detailed plan for business setup
  • Selecting company name and reserving it with the chosen free zone
  • Setting up the infrastructure, and hiring required staff
  • Depositing the mandatory capital amount in the bank
  • Handling business registration and licensing requirements
  • Getting shareholder/s to sign company formation documents in the presence of free zone authorities

Types of Permissible Ownership

A minimum capital investment as per the laws of the Fujairah free trade zone is required to setup a new business entity in the Emirates. The types of ownership permissible in the Fujairah free zone are:

  • Free Zone Establishment (FZE) - Business setup with single shareholders
  • Free Zone Company (FZC) - Business setup with 2 to 5 shareholders
  • Branch of a foreign or local company

Documents Required

In order to open a branch office or company in Fujairah Free Zone, following documents pertaining to the parent company are required:

  • Board resolution
  • Memorandum of articles attested by the UAE embassy
  • Valid operating license
  • Passport copies along with two photographs of the person in-charge, directors, shareholders, etc.

Types of Business Licenses Issued

Company formation in Fujairah free zones is not possible without obtaining a business license. Business licenses can be issued within a working day in the following categories:

  • General Trading License - This is little costlier as 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 UAE. Additionally, it allows investors to avail special permission for local distribution from relevant Government departments to continue hassle-free operations in the free zone
  • Trading / Commercial License - Specified products subject to the regulations of the license issuing authority can be traded using this license
  • Service License - Firms offering services like accounting firms, law firms or individual practitioners, and business consultants are issued service license
  • Industrial License - Permits license holder to import raw materials, manufacture stated products, and export finished product to any country
  • Warehousing License - Investors can avail warehousing facilities on lease and use warehouse for storage, packaging, and distribution of goods
  • Manufacturing License - It can be obtained only after the project is approved by the free zone authority, implemented, and fully insured for manpower and machinery. Further, the approval for manufacturing license is subject to:
    • Built-up area and open space of the project
    • Electricity, water and manpower supplies
    • Environmental aspects related to the project

Commitbiz for Fujairah Free Zone Company Formation Services

Investment in FFZ is a cost-effective proposition with lower overheads and establishment expenses. Commitbiz can help you avail all the advantages of company formation in the Fujairah without worrying about legal business formalities or bureaucratic red tape. If you are looking for a reliable partner for hassle-free company setup in Fujairah free zones, contact specialized team from Commitbiz for assistance.

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