Umm Al Quwain Free Trade Zone (UAQ FTZ) is located in Umm Al Quwain, one of the United Arab Emirates’ (“UAE”) seven emirates renowned for its modern infrastructure and striking natural beauty.
Umm Al Quwain (also a growing tourist destination within the UAE) being a relatively new Free Trade Zone in the UAE, offers very competitive fees plus the ability for documents to be signed remotely (an Umm Al Quwain FZ company can be set up without the shareholders being present at the time as long as they visited UAE in the past).
Benefits of incorporating in Umm Al Quwain (“UAQ”) include:
• access to the UAE’s extensive network of Double Taxation Avoidance Treaties (the UAE has signed DTAs with over 80countries
• 100 per cent foreign ownership is permitted
• zero corporate and personal income taxes
• An UAQ Corp can have up to 50 shareholders
• 100 per cent import and export tax exemption within the FTZ
• fast registration process
• proximity to two international airports, Dubai and Sharjah, and major sea ports
• no restrictions on hiring foreign employees
Types of licences allowed when registering an Umm Al Quwain Company
1. COMMERCIAL LICENSE (TRADING LICENSE)
There are two types of license, which fall under this category: Commercial License and General Trading License.
Commercial License: This authorizes the import, export, distribution and storing of items specified on the license. A Commercial License can have three different product lines or 10 similar product lines.
General Trading License: This enables the licensee to trade in a wider range of activities and gives the freedom and flexibility to trade in any commodity, which is permitted within the UAE.
Note: Commodities which require special approval or clearance from various UAE authorities e.g. explosives and armaments cannot be traded with a General Trading license.
Usual activities include i.e. Trading with Automobiles, Seeds Trading, Coal & firewood trading, cotton and natural fibers trading, etc.
2. CONSULTANCY LICENSE
This is for entities, which offer expert or professional advice, and is issued to all manner of professionals including artisans and craftsmen. It allows two similar activities.
Activities usually registered include Marketing Consultancy, Management Consultancy and IT Consultancy.
3. FREELANCE PERMIT
This allows an individual to operate as a freelance professional, and conduct business in one’s birth name as opposed to a brand name or company. The Freelance Permit is designed for individuals who operate in technology, media and film sectors, and is issued to talent roles, creative roles and selected administrative roles. (Activities usually registered include Actors, Artists, Photographer and Producers).
4. INDUSTRIAL LICENSE
This enables the licensee to import raw materials, then manufacture/ process / assemble / package the specified products, and export the finished product. It allows the holder to import raw materials for the purpose of manufacturing, processing and/or assembly of specified products.
5. SERVICE LICENSE
This license is for service providers. It permits the licensee to carry out the services specified on the license within the Free Zone, such as Logistics; Courier Services; Insurance Service Provider; Travel Agency; Tour Services; Car Rental etc.
Obtaining an Umm Al Quwain tax resident certificate and residence permits
An Umm Al Quwain FZ Corp can issue residence permits and obtain tax residence certificates from the UAE authorities for its foreign owners and executives. A FZ company, must have physical presence in the UAE and, in that respect, it must own or hire premises.
Private accommodation is not necessary for Umm Al Quwain Free Trade Zone Authority when applying for residence but many do this to reinforce their case for substance and legitimacy.
As far as the company is concerned, it must have physical presence in the UAE. In that regard, the most interesting and cost effective options are proposed by free zones situated in a number of emirates including Umm Al Quwain Free Trade Zone (UAQ FTZ). Usually, these options consist of “flexi desks” or “flexi offices”.
Furthermore, and if a local bank account is maintained with regular account movements, the foreign owners and executives can apply to the UAE Ministry of Finance to receive UAE tax residence certificates.
A UAE residence permit and a tax residence certificate can be useful to foreign owners and executives who wish to register their tax residency in the UAE. It is worth noting, that banking institutions in UAE and many outside consider UAE tax residence certificates as sufficient proof of tax residency in the UAE.
UAQ Companies in Summary
100% foreign ownership permitted;
Large variety of permitted activities;
No exchange control;
Easy and fast incorporation procedure;
Good location and access to the main sea routes;
Ideal conditions for micro business.
FZE (Free Zone Establishment) – owned by 1 person or entity.
FZC (Free Zone Company) – from 2 up to 50 shareholders.
Brunch of local or international company
General Trading License
Premium Consultancy License
Micro Business License
The minimum Share capital for a standard FZE and FZC is 300,000 AED. No supporting documents are required.
Types of Offices:
Smart and Physical offices. A wide range of warehouses and land.
For micro business – 0
Freelance permit – 1
Consulting / commercial – 2
General trading license – 3
Premium Consultancy -3
Accounting: Accounting is not required
Reporting and auditing: Company is not required to keep records.
Startup Business Package (USD)
|The best option for the clients, who require only one Visa:
||Commercial or Consultancy
||Shared work station
| Company Incorp Package (USD) : Cost: 3,700
| Company renewal from the 2nd year:
|Company Renewal Cost
||* Package includes: Company registration, Annual license fee, Premium office facility, Establishment card.
** Visa fee isn’t included and is paid additionally
Investor Visa: Visa Package (USD 995) + Medical Fitness Test (USD 320) + Emirates ID (USD 150) (3 years VISA) + Professional Fee (USD 950).
Transport Expenses for visa obtaining aren’t included in the package and will be charged additionally.
Utility bill as proof of address (within the latest 2 months) for each shareholder / manager;
Signed UAQ FTZ application form (AC Business Experts consultants will prepare the draft);
Signed Memorandum of Association (AC Business Experts consultants will prepare the draft).
Visa Stamping (2 – 3 working days).