United Arab Emirates: Umm Al Quwain Free Trade Zone

Last Updated: 29 November 2018
Article by Oneworld Ltd

Umm Al Quwain Free Trade Zone is located in Umm Al Quwain which is one of seven Emirates in UAE and just 45 km away from Dubai. Umm Al Quwain is a progressive and prosperous emirate with modern infrastructure. Umm Al Quwain's stable economy, open investment climate and low costs of living and labour make it an attractive strategic business base, within the MENA region, Asia and Europe all within easy reach.

Oneworld MidEast Ltd is able to provide services to assist with the incorporation of a UAQ FTZ company and obtaining residency visas for its shareholders and employees.

Advantages

  • 100% foreign ownership
  • 100% repatriation of capital and profits
  • 0% corporate and personal tax
  • Hi-tech facilities, including office, warehouse and land availability
  • Competitive government prices on incorporation and visa
  • Low labour cost
  • Multiple category activity licenses

Eligible Entities

  • Free Zone Establishment (limited liability company with one shareholder)
  • Free Zone Company (limited liability company with two to fifty shareholders)
  • Branch of a local or foreign company
  • Freelance permit

TYPES OF LICENSES

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.

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.

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.

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.

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.

Prohibited activities

  • Banking business
  • Any financial/investment activities

Residency Visa

An Umm Al Quwain Free Trade Zone company may apply for shareholder and/or employee residence visas after receiving its license and establishment card. The residence permit is valid for three years for the shareholders and for two years for employees. The number of visas that may be applied for by the company depends on the size of the office (one visa per 9 sq. m.). A Flexi Office package offers up to three residence visas.

Significant features

Company Legislation UAQ Free Trade Zone Company Regulations No 1/14
Time to Incorporate 4-5 Days
Possibility of Migration No
Tax Rate VAT at 5%
Shareholders 1-50
Residency Requirements No
Share Capital AED 300,000
Bearer Shares No
Beneficial Ownership Disclosure Shareholder, Director and Manager details are provided to the UAQ Free Trade Zone, but these remain private and are not publicly disclosed
Director One as minimum and no limit for maximum (only individual)
Manager One (individual)
Secretary One (individual)
Local Presence Requirements No
Availability of Shelf Companies No
Meetings No
Annual General Meetings Yes
Annual Accounts Yes
Filing of Accounts No
Audit Requirement Yes, but does not need to be filed
Registered Office Required Yes

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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