Entrepreneurs, investors, professionals, freelancers, and dreamers from around the world are seeking opportunities to operate companies of various sizes.
Located just 30 minutes from Dubai, Umm Al Quwain is quickly becoming a preferred destination due to its friendliness toward small and medium-sized enterprises (SMEs), favorable tax laws, low cost of living and labor, access to affluent consumers, excellent infrastructure, rapid development, tech-savvy workforce, and access to global markets.
The Umm Al Quwain Free Trade Zone (UAQFTZ) is a government-operated business hub and promotes business diversity on a whole different level as it offers great business stability and many business options.
More than 1,500 companies from 150+ nationalities are active there, and with some expert help, yours could be the next one!
Keep reading to explore how you can form your company there in no time, how it will help your business thrive globally, and what the Tokenova team does to make the establishment process easier.
Benefits of Establishing in UAQFTZ
The UAQ FTZ is for companies or startups looking for a more affordable option and more fields to do business in. This free trade zone offers cost-effective office leasing services and there are no restrictions on the number of foreign people you wish to hire. In more detail, its advantages are:
- 100% Foreign Ownership: In UAQFTZ, foreign investors can fully own their businesses, unlike in many other regions of the UAE.
- Favorable Tax System: There are no corporate taxes or personal income taxes, making this zone financially attractive.
- No Currency Restrictions: Businesses can operate without any limitations on currency exchange.
- Access to Global Markets: The zone’s strategic location provides easy access to regional and international markets.
- Diverse Business Ecosystem: The free zone supports a wide variety of industries, allowing for flexible operations.
- Infrastructure Support: Businesses benefit from modern facilities, including office spaces, warehouses, and land for development.
- No Visa Deposit Required: There is no requirement for you to make a visa deposit, simplifying the setup process.
Types of Licenses Offered by UAQFTZ
One of the unique advantages of the UAQFTZ is its flexibility which allows multiple activities to be bundled under a single license. This makes operations for businesses looking to diversify their offerings a whole lot easier.
- Commercial License
- Purpose: For businesses engaged in the purchase and sale of goods within the UAE or internationally.
- Activities: Authorizes import, export, storage, and distribution of specified items. A Commercial License can include up to ten similar product lines or three different categories of products.
- General Trading License
- Purpose: A broader category under the commercial license.
- Activities: Enables trading in a wider range of commodities, providing flexibility to engage in various trading activities permissible within the UAE mainland.
- Service License
- Purpose: Designed for service-oriented businesses.
- Activities: Enables companies to incorporate and market their services effectively, contributing to the service sector’s growth in the UAE.
- Freelance Permit
- Purpose: For individual professionals operating under their own name rather than a company name.
- Activities: Suitable for freelancers in sectors such as technology, media, and film, covering roles in creative and administrative functions.
- Industrial License
- Purpose: For businesses involved in manufacturing and production.
- Activities: Allows companies to import raw materials, manufacture products, and export finished goods. A physical office or warehouse is required for this license.
Extra Services
In order to gain more investors from different parts of the globe, Umm Al-Quwain offers other services that may not be found in other regulators. Some of these services include:
- Flexible Office Spaces: UAQFTZ offers a variety of office space options, including fully furnished offices and customizable workspaces to accommodate different business needs.
- Warehouse Facilities: Businesses can lease warehousing units that are strategically located within the free zone, providing easy access to logistics and distribution activities.
- Land Leasing: This free zone provides leasable land units for companies looking to establish manufacturing or industrial operations, with competitive pricing and low operational costs.
- Virtual Office Solutions: For businesses that do not require a physical office presence, UAQFTZ offers virtual office services, allowing companies to operate remotely while maintaining a professional image.
- Business Support Services: Additional support services include assistance with company registration, licensing, and administrative functions, ensuring that businesses can focus on their core activities without bureaucratic hurdles.
- Networking Opportunities: UAQFTZ organizes events and networking sessions that enable businesses to connect with potential partners, clients, and industry peers.
Governing Authority
The UAQFTZ operates under the authority of the Umm Al Quwain government. It ensures compliance with local regulations while promoting a conducive environment for business operations.
UAQ Free Trade Zone Establishment Process
If you are looking to set up a business here, you have to gather some documents and follow these steps in order:
- Choose Business Structure: Select the type of entity and license that aligns with your business needs. Options include:
- SPC Free Zone Company
- Freelancer Permit
- Standard Commercial License
- General Trading License
- Industrial License
- Application Submission: Fill out an application form and submit it to the UAQFTZ authority along with the required fees.
- Document Compilation: Based on the chosen entity, compile the necessary documents for submission.
- License Issuance: After approval, a business license will be issued, allowing you to open a corporate bank account and apply for visas.
Required Documents
After deciding on what to choose as your business structure, you need to gather some documents to get started on the initial process. Make sure you have:
- Passport copies of shareholders
- A business plan outlining your proposed activities
- Proof of residence (for foreign investors)
- Bank reference letter (if applicable)
- Any additional documents based on your business type.
Tokenova’s Role in Your UAQFTZ Company Formation
So far we have learned that UAQFTZ is an attractive destination for entrepreneurs and corporations seeking to establish a presence in the UAE, thanks to its supportive environment and strategic advantages. Despite its flexibility, entrepreneurs dwell on whether to go with the UAQFTZ or another jurisdiction in another emirate. That’s when the role of company establishment consultancy firms in the UAE becomes clearer. Most jurisdictions offer appealing options for investment and firm setup, but the nature of your business, how much time you have on your hands, and of course, your budget, make it a very important decision.
