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Establish a Company in Umm Al Quwain

Establish a Company in Umm Al Quwain

The Umm Al Quwain Free Zone is the newest free zone in the United Arab Emirates and started operating last year. The Umm Al Quwain Free Zone is located close to the Dubai Airport and even closer to Sharjah in the Emirate of Umm Al Quwain. Foreign investors wanting to open a company in Umm Al Quwain will be interested in finding out they will benefit from the same legal status and facilities as in any other UAE free zone. Foreign businessmen can fully own a company in the Umm Al Quwain Free Zone. A company registered in Umm Al Quwain may use the Dubai seaports and airports, if it is registered with the Dubai customs.

Business licenses in Umm Al Quwain

The Umm Al Quwain Free Zone Authority provides three types of business licenses for companies, but also for single professionals. Also, it is possible to establish a company in Umm Al Quwain through the services of company formation agents in Dubai. Foreign businessmen setting up a company in Umm Al Quwain may apply for one of the following business licenses:

  • a trading activities or commercial license,
  • a general trading activities license which is popular among foreign investors,
  • a consultancy or premium consultancy license.

Foreign individuals wanting to set up a sole trader or carry out freelance activities may apply for a micro business license, respectively for a freelancer permit.

Large companies wanting to expand their business in Umm Al Quwain may apply for an industrial license.

Setting up a company in Umm Al Quwain

Enterprisers may very easily open a free zone company in Umm Al Quwian because it does not require appointing a resident director or applying for a residence visa. Foreign companies may also establish branches or subsidiaries in Umm Al Quwain provided that they subscribe a minimum share capital of 300,000 AED (approximately 82,000 USD). The company registration procedure is quite simple if the following documents are submitted:

  • the owner’s passport copy,
  • proof of residency of the owner,
  • three chosen business names,
  • the company’s memorandum and articles of association,
  • registration fee.

The company must also open a corporate bank account with a Dubai bank and, once the documents are processed, a certificate of incorporation will be issued.

Paying taxes in Umm Al Quwain Free Zone

The Government in Umm Al Quwain has its own taxation system, just like other Emirates such as Dubai or Abu Dhabi. Umm Al Quwain also enforces the taxes imposed by the national government, however, Umm Al Quwain Free Zone has its own authority which establishes how companies set up here are taxed. This is a common feature to all UAE-free zones.

The free zone of Umm Al Quwain was launched in 2014 and it already offers many tax benefits to companies operating here. Foreign investors opening companies in Umm Al Quwain Free Zone must know that they will be covered by the UAE’s double taxation agreements when it comes to paying taxes in their home countries. Both individuals and companies can benefit from these tax benefits when opening a company in Umm Al Quwain.

Our company registration agents in Dubai can assist foreign enterprisers who want to open companies in Umm Al Quwain and its free zone.

Tax advantages for companies in Umm Al Quwain Free Zone

Foreign entrepreneurs can open various types of companies in Umm Al Quwain Free Zone and each of these will benefit from the same tax advantages. Among these are:

  • no income or corporate taxes;
  • the possibility to repatriate profits without any taxes;
  • full tax exemption on imports and exports.

The only thing investors must pay attention to is the share capital required to register the company with the free zone authority.

For details about company registration fees, please contact our agents in Dubai.