Establishing businesses in Umm Al Quwain is highly beneficial and profitable to individuals due to easy access and incorporation process.
It is strategically located near the Dubai International Airport, Sharjah International Airport, and the UAQ seaport. This makes it an ideal place for trading and setting up a business in the UAE.
The Umm Al Quwain Free Zone Authority manages the free zone, and it is supported by the Umm Al Quwain government, which issues rules and regulations of incorporation with license approvals.
Most of the companies in the UAQ free trade zone are mainly involved in exporting and importing activities. Therefore, setting up a UAQ free zone company is highly beneficial due to the easy access to the rest of the world because of the transportation facilities available in the region.
Free Zone in Umm Al Quwain
The most popular free zone in Umm Al Quwain is the Ahmed Bin Rashid Port and Free Zone.
It was established in 1988, and it is located on the West Coast of the United Arab Emirates. It is developed to promote the dynamic growth of the region and serve as a global trade centre for local and international investors. Therefore, the Ahmed Bin Rashid Free Zone has risen as a flawless opportunity for the establishment of startups and expansion of the already established businesses in the UAE.
Advantages of Umm Al Quwain Free Zone Company Formation
The Umm Al Quwain Free Zone offers various advantages for companies, and they are as follows –
- Easy Registration and Incorporation.
- Exemption from Corporate and Personal Taxes.
- No Minimum Capital Requirement.
- Business-Friendly Rules and Regulations.
- 100% Retention of Capital and Profits.
- Flexible Regulatory Framework for Company Registration in UAQ.
- 100% Foreign Ownership of the Company.
- Concession for Trading Companies due to Seaport Authorities.
- Supportive Government for Legal Business Activities.
Types of Umm Al Quwain Free Zone Licenses
The UAQ authorities support all types of legal business activities in the free zone region, but these companies need to obtain a trade license that best suits the type of business activity of the company. UAQ free zone has various types of licenses for different types of business activities with their own fees, and they are as follows –
1) Trading License
A trade license is an essential permit that allows companies to conduct business operations, adhering to legal regulations within the Emirate.
This license is further divided into two categories, and they are explained below -
a) Commercial License
A commercial license allows the holder to deal with commodities that are specified in the license. For instance, a dealer can trade in three different product lines or ten similar products as mentioned in the license by the UAQ authority.
b) General Trading License
A general trading license grants authorisation to much wider trading prospects and a greater number of product lines for a business. This license allows you to indulge in all types of trading products except for tobacco, alcohol, pharmaceuticals and crude oil.
2) Consultancy License
Individuals who offer professional services to businesses and consumers must acquire a consultancy license in Umm Al Quwain Free Trade Zone. This license is beneficial for all types of professionals like artisans, teachers, lawyers, etc.
3) Industrial License
An industrial license is acquired by businesses that are involved in the manufacturing and production process, where natural material is transformed into finished goods.
4) Service License
Service providers in the UAE are blessed with various opportunities that help them improve the economy of the Emirate. They are provided with service licenses so that they can help service companies in the incorporation and distribution of services.
5) Freelance Permits
The UAQ Free Zone Authorities and their policies make a welcoming environment for all types of businesses and sectors, which includes freelancers of the place as well.
They issue freelancing permits so that they are allowed to carry out business and professional activities such as the media and film sector, as well as creative and talent roles.
Note - The cost of licenses is subject to 5% of value-added taxes.
Steps of Umm Al Quwain Free Zone Company Formation
There are some steps in Umm Al Quwain company formation, and these steps explained below help companies follow legal regulations and maintain their reputation in the company -
i) Selection of a Business Activity
After the business owners choose to set up a company in a free zone, the first step is to select the business activities of the company. These activities must be according to the nature and scope of the company.
ii) Choose a Legal Structure
A legal structure that is profitable and has business-friendly policies must be chosen. The management of the company must choose an appropriate legal structure for the business between Free Zone Establishment/Free Zone Company/Branch.
iii) Select a Business Name
In the next step, entrepreneurs must select a business name that is unique and appropriate for the company. It must comply with legal regulations set by the free zone authority.
iv) Submit Required Documents
The business owners must submit the necessary documents to the Umm Al Quwain Free Zone Authority. Documents such as the Memorandum of Association, Article of Association, etc.
v) Applications for Licenses
Licenses are another important factor for companies. They need to submit certain application forms to apply for the license to obtain approvals and function with the business activities.
vi) Open a Bank Account
Business owners must open a bank account to maintain transparency and business transactions. There is a need to submit documents including various data and details to open a bank account.
vii) Visa Processing
The visa process must be completed by the company for the employees and members of the company. The company needs to submit the necessary documents to the Umm Al Quwain Free Zone Authority and apply for the visa.
It is beneficial for them as they will be allowed to work in any part of the world without legal issues.
Every company needs to calculate its finances and plan a budget for the formation accordingly. The Umm Al Quwain Free Zone setup costs are drawn out through the budgeting process, which makes the company efficient and effective.
ix) Regulatory Framework
Lastly, entrepreneurs of the company must ensure that the process and functions of the business are followed according to the rules and regulations of the authority.
Setting up a business in Umm Al Quwain can help you obtain easy access to different markets from all over the world.
To understand it better, contact Commitbiz to set up your dream business; our experts will take care of the rest.
What are the main differences between the Mainland and Freezone Setup?
The major difference between the mainland and the freezone is that a free zone company cannot do business outside the freezone without the help of a local agent.
Is physical office space required for company formation in UAQFZ?
The free zone generally requires businesses to lease office space within the free zone premises. However, there are options available for flexi-office setups to accommodate varying business needs.
Are there any restrictions on business activities in UAQFZ?
UAQFZ has a wide range of permissible business activities; however, some activities may be subject to additional approvals or regulations.
Can I own multiple businesses under one license in UAQFZ?
Yes, UAQFZ allows for multiple business activities under a single license, provided they are within the same category of business.
What are the banking options available for businesses in UAQFZ?
UAQFZ offers a selection of reputable local and international banks, providing various banking services such as corporate banking, trade finance, and investment solutions tailored to the needs of businesses operating within the free zone.