Umm Al Quwain (UAQ) is one of the seven emirates in the UAE and is an ideal location for free zone company formation. There are many benefits that investors can avail for setting up a UAQ free zone company as UAQ is just 45 minutes away from the cosmopolitan city Dubai and has continued to exhibit immense potential as a global trade center over the last few years. The modern infrastructure and state-of-the-art facilities have made UAQ an attractive location for foreign investments and there are a number of business opportunities available for investors in a variety of industries and sectors in the UAQ free zone.
Free Zone Company Formation in Umm Al Quwain
Umm Al Quwain is one of the most prosperous and progressive emirates in the country and company formation in Umm Al Quwain free zone can prove to be a gateway to international markets and help in expanding your business through a global business platform. The UAQ company formation starts with company registration procedure and requires the applicants to submit a few important documents to the UAQ Free Zone Authority. The whole procedure to set up a free zone company in UAQ has been designed to be completely hassle-free so that the investors and traders can start their business in an encouraging economic environment.
Here is a stepwise procedure mentioning each step in detail, which needs to be followed to start a free zone company in UAQ:
- Investors first need to choose the specific type of business license that they should obtain to start their free zone business in UAQ. There are many different types of licenses from which investors can select from and different business activities are allowed under a specific type of license.
- In the second step, investors need to choose which type of business entity they would like to establish in UAQ free zone. The three types of business entities that can be formed in the UAQ are Free Zone Establishment (FZE), Free Zone Company (FZC) and branch of an existing company.
- In the third step, the investors need to select the specific type of office space for their business operations.
- In the penultimate step, all the documents for company registration and set up need to be submitted to the Umm Al Quwain Free Zone Authority. The need for documents varies according to the specific type of business entity formed in UAQ free zone.
- Investors need to make payments to complete the process of company formation after which, the Umm Al Quwain Free Zone Authority issues the business license to investors to start their free zone company.
Umm Al Quwain Free Zone Licenses
There are a number of options available for investors in a wide range of sectors and industries to start their free zone company in UAQ. The amazing flexibility in business activities and ease of doing business in the UAQ free zone has been made possible by offering different types of licenses.
Here are different types of UAQ free zone licenses that investors can apply for according to their nature of business, specific type of business entity selected and specific business requirements:
- Commercial License
- Commercial License
- General Trading License
- Consultancy License
- Premium Consultancy License
- Freelance Permit
- Service License
The table given below describes the initial fee, renewal fee and visas allowed for each type of the license:
| License Type | Initial Fee | Renewal Fee | Visas Allowed
|
| Commercial License | AED 35,000 | AED 30,500 | 3 |
| Consultancy License | AED 28,000 | AED 23,500 | 2 |
| Premium Consultancy License | AED 40,000 | AED 35,500 | 3 |
| Freelance Permit | AED 28,000 | AED 23,500 | 2 |
| Service License | AED 21,000 | AED 17,500 | 0 |
These are the details of the different types of Umm Al Quwain free zone license fees that investors need to pay to obtain a specific license for UAQ Company set up. Investors and traders must be aware that the business license in UAQ needs to be renewed every year.
UAQ Business Activities
As mentioned earlier in the process of free zone company formation in UAQ, different types of business activities are allowed under a specific type of license. This offers investors and traders a vast variety of opportunities in many different sectors.
Here are the different types of business activities allowed according to the specific business license types in the UAQ free zone:
- The business activities allowed under the commercial license are import, export and permission to store and distribute specific items. Investors are allowed three different product lines or ten similar product lines under a commercial license.
- The general trading license allows investors the trading freedom of permitted commodities in UAE. The trading is allowed for almost all categories of products (except crude oil, pharmaceuticals, tobacco and alcohol) under the general trading license, which makes UAQ of the preferred free zones in the UAE for international traders.
- The consultancy license holders are allowed to provide expert help and advice to professionals belonging to various industries and sectors.
- The license holders of premium consultancy are allowed to provide professional consultancy in tourism, real estate, finance and investment amongst other sectors.
- Freelance permit allows individuals to work as freelancers in different sectors including film, media and entertainment amongst others. This unique type of license allows the freelancers to do their business with their birth name in place of the company or brand name.
- Services license holders can carry out different specific services and do their business as a travel agency, courier service provider, car rental service and many others.
UAQ Company Registration and Required Documents
Different documents are required to be submitted to the UAQ Free Zone Authority to complete the registration procedure for company setup UAQ. The requirement of documents varies for setting up a specific type of business entity in the UAQ free zone.
Here is a list of documents required to complete different procedures involved in the formation of an FZE or FZC in UAQ free zone:
- Application form
- Passport copy of shareholders, directors
- Passport copy of manager
- Proof of address of shareholder
- Memorandum and articles of association
The documents required to set up a branch in the UAQ free zone are:
- Application form
- Passport copy of manager
- Proof of address of manager
- Memorandum and articles of association
- Certificate of incorporation
- Board resolution and power of attorney
Visa Cost in UAQ Free Zone
The number of allowed visas differs for different types of business licenses in the UAQ free zone. There are two types of visas that applicants can obtain in the UAQ free zone. These two types are Employment Visa and Investor Visa. The fee for Employment Visa that remains valid for two years is 2,260 while the Investor Visa fee is AED 2,560 and it remains valid for three years. The fees for both types of visas are inclusive of the 5% VAT that has been implemented in UAE from January 1, 2018.
Umm Al Quwain Free Zone Company Setup Advantages
Umm Al Quwain is one of the most cost-effective business platforms for global investors in UAE. There are many notable initiatives that have been taken by the UAE government to promote international trade in the emirate.
Here are some of the benefits offered to investors for starting their free zone company in UAQ:
- 0% Personal and corporate tax
- 100% Ownership of the company
- A wide variety of business activities
- 100% Repatriation of profits and capital
- Top-grade infrastructure and facilities
- Restriction free hiring of foreign employees
- 100% Tax exemption on imports and exports
With all the above-mentioned benefits and investor-friendly policies, UAQ free zone has become an ideal option for global investors to expand their business in UAE and increase the scope of growth opportunities in an encouraging economic environment. Investors must seek help for free zone company formation from a professional Umm Al Quwain free zone business setup consulting firm to start their business effectively by completing all the legal requirements and procedures.