Fujairah Freezone is a free trade zone in Fujairah, UAE, that offers various incentives and benefits to businesses for company formation and expansion.
Fujairah has been rapidly growing as a hub for business and tourism in recent years. With its strategic location on the Gulf of Oman, Fujairah attracts tourists and investors yearly, offering various business opportunities across multiple sectors.
The emirate’s economy is primarily driven by oil and gas but has diversified into other sectors such as hospitality, real estate, and logistics.
To cater to the growing demand for business setup and expansion, Fujairah offers various free zones that provide businesses with attractive incentives and benefits. Fujairah Free Zone Authority (FFZ), in particular, is one of the most popular free zones in the region, offering a range of services and facilities for businesses to thrive.
In this blog, we will closely examine company formation in Fujairah Free Zone, its requirements, costs, and license options.
How to Setup Business in Fujairah Free Zone?
By following these easy steps, learn how to navigate setting up a business in the Fujairah Free Zone.
Step 1: Choose Your Business Activity
This step involves selecting the type of business activity you want to conduct in the FFZ, as it will determine the type of license you need and the regulations you must follow.
Step 2: Register Your Trade Name
When setting up a business in Fujairah Free Zone, registering your trade name is a vital step to ensure that your business name is unique and complies with the rules and regulations of the free zone.
You must submit an application to the relevant authorities along with the required documents and fees. Once approved, you will receive a trade name certificate confirming your business name’s availability and registration, which is required for obtaining a business license.
It is important to note that the trade name must be relevant to your business activity and should not contain any prohibited or offensive words or phrases.
Step 3: Apply For Your Free Zone Trade License
After registering your trade name and fulfilling all other requirements, the next step in setting up your business in Fujairah Freezone is to apply for a free zone trade license.
This license is issued by the relevant authorities in the free zone and allows you to conduct business activities within the designated jurisdiction.
To apply for a free zone trade license, you must submit the necessary documents, including your trade name certificate, passport copies, and business plan. The process may vary depending on the type of license you require and the nature of your business activity.
Once approved, you will receive your free zone trade license, a crucial document for legally operating your business within Fujairah Freezone.
Step 4: Open a Free Zone Company Bank Account
Opening a free zone company bank account is critical when setting up your business in Fujairah Free Zone. It enables you to conduct financial transactions and manage your finances efficiently.
To open a free zone company bank account, you will need to provide the necessary documents, including your trade license, passport copy, and proof of address. The records required may vary depending on the bank you work with.
Choosing a bank that offers online banking services is recommended, which can be convenient for managing your finances remotely.
Additionally, you may also be required to maintain a minimum balance in your account to avoid penalties. Once you have opened a free zone company bank account, you can start managing your finances and conducting transactions for your business.
Step 5: Final Approval
Final approval is the last step in setting up your business in Fujairah Freezone. It involves obtaining the necessary approvals from the relevant authorities to start your business operations.
Once you have completed all the required steps, including registering your trade name, obtaining a business license, and opening a bank account, you must submit all the necessary documents to the relevant authorities for final approval.
The authorities will review your application and may conduct inspections to ensure that your business complies with all the regulations and requirements of the free zone. Once your application is approved, you will receive the final approval certificate, allowing you to start operating your business in Fujairah Free Zone legally.
Therefore, it is essential to ensure that you comply with all the free zone regulations and requirements to avoid any future penalties or legal issues.
Fujairah Freezone Company Formation Requirements
Fujairah Free Zone has specific requirements for company formation, which include registering your trade name, choosing your business activity, obtaining a business license, and opening a bank account.
Additionally, you may also need to provide a business plan, passport copies, and other relevant documents as per the requirements of the free zone authority. It is also essential to comply with the rules and regulations of the free zone regarding ownership, management, and other aspects of business operations.
Nevertheless, by fulfilling these requirements, you can successfully set up your business in Fujairah Free Zone and start operating legally in this dynamic and growing economy.
License Options & Cost in Fujairah Free Zone
Fujairah Freezone offers various license options for businesses, including the following:
- General trading Licence
- Trading license
- Industrial license
- Professional license
- National industrial license
The cost of obtaining a license in the Fujairah Freezone depends on the type of license and the business activity you choose.
For example, the cost of a trading license can range from AED 15,000 to AED 35,000 per year, while an industrial license can range from AED 20,000 to AED 50,000 per year. Additionally, there may be additional fees for services such as visa processing, legal services, and other administrative services.
Therefore, consulting with the free zone authority or a business setup consultant is recommended to understand the exact costs and requirements for obtaining a license in Fujairah Free Zone.
Fujairah Freezone Company Formation Costs
The costs associated with Fujairah Freezone company formation can vary depending on several factors, such as business activity, license type, and business size. Some of the common costs involved in setting up a company in the Fujairah Free Zone include the following:
- Trade name registration fees
- Business setup fees
- License fees
- Office space rental fees
- Visa processing fees
- Bank account opening fees
- Legal and accounting fees
The starting fee for a zero visa authorization with a virtual workplace in the Fujairah freezone is 21,500 AED. A 5,000 Dirham refundable retainer is also required.
Due to their nature, some company tasks have higher expenses. For instance, authorization to sell alcohol costs 50,000 AED. A further payment of 50,000 AED will be needed on top of that.
Facilities Available in Fujairah Freezone
Fujairah Free Zone offers multiple facilities for businesses. Some of them are listed as follows:
- Easy access to local and international marketplaces
- Favorable regulations for business
- Owners are protected by money
- Virtual office
- Flexi-desks
- Branch offices
- Warehouses
- Open-land
- Overseas Company
- Issuance of licenses and NOC certificates on schedule
- Auto registration
- legal papers and entry licenses notarized
- granting of residence permits, transit permits, and visitor passports to workers and investors
- recruiting for all ranks of staff
- NOC/Certificates
FAQs about Fujairah Free Zone Company Formation
What is Fujairah Free Zone?
Do I need a Local Partner to Start My Company in Fujairah Free Zone?
No, you do not need a local partner to start a company in Fujairah Free Zone.
How many days would it take to get my license for my business in Fujairah Freezone?
The time to obtain a business license in Fujairah Freezone can vary, but the process typically takes 1 to 2 weeks.
How many free zones are there in Fujairah?
The Fujairah Creative City and the Fujairah Free Zone are the two main Free Zones in Fujairah.
How much is the Fujairah Freezone license?
The starting fee for a zero visa authorization with a virtual workplace in the Fujairah is 21,500 AED. A 5,000 Dirham refundable retainer is also required. However, due to their nature, some company tasks have higher expenses. For instance, authorization to sell alcohol costs 50,000 AED.
How can I start a business in the Fujairah freezone?
To start a business in Fujairah Freezone, select a business activity, register your trade name, apply for your free zone trade license, open a bank account, and obtain final approval.
How to apply for Fujairah Freezone services?
To apply for Fujairah Freezone services, you can visit the official website, fill out the application form, and submit the required documents.
How Airzone can help you set up business in Fujairah Free Zone
Airzone provides a comprehensive knowledge base to help businesses of all sizes understand how to set up their business in the FFZ.
Airzone can connect you with reliable business formation partners who can guide and support you through every step, from acquiring your trade license to opening a bank account and setting up your business.
With Airzone’s expert assistance, you can ensure hassle-free and efficient company formation in Fujairah Freezone. Contact Airzone today to start your journey toward a successful business setup in UAE.