As one of the UAE’s first Free Zones, Fujairah has a rich history. Industrial and maritime activities are the primary focus of the Fujairah Free Zone. One can find many heavy industrial and commercial businesses in the area. In addition, all of the region’s main petroleum companies have established local operations in Fujairah due to the port’s ideal location, which gives direct access to the Indian Ocean.
Companies that operate inside its boundaries benefit greatly from its proximity to both an international airport and a nearby seaport. In addition to markets in the MENA area and India, feeder boats link the Free Zone to Asian markets.
There are no import or export duties for raw materials, production equipment, and completed goods for enterprises operating in the Fujairah Free Zone according to government regulations. A business-friendly rule in the Fujairah Free Zone contributes to the zone’s long-term significance.
Furthermore, enterprises in the Fujairah Free Zone pay less than their counterparts in other UAE Free Zones.
Are you looking to set up a business in the United Arab Emirates? If so, the Fujairah Free Zone may be the perfect option for you. In this post, we’ll take a look at what’s required to set up a business in the Fujairah Free Zone and some of the benefits of doing so. Stay tuned!
Top Benefits of Setting up business in Fujairah Free Zone
Following are the advantages of establishing a company in Fujairah:
- There is no corporate or personal tax.
- The company is owned entirely by its owner.
- Capital and profits are repatriated on their whole.
- There are no currency limits.
- Import and export taxes are completely excluded.
- Company formation in the Fujairah Free Zone will give you access to cutting-edge facilities.
- You will be exempt from customs duties if you establish a company in the Fujairah Free Zone.
- It will allow you to reach regional and global markets via land, air, and sea.
- It will provide you with access to Fujairah Port as well as Fujairah International Airport.
- When a corporation is formed, it is exempt from all corporate and personal taxes.
- Capital and income are fully repatriable upon company formation.
- In the Fujairah Free Zone, there are no hidden costs.
- It offers investor-friendly firm creation policies.
Documents Required For Starting a Business in Fujairah Free Zone
In order to initiate the procedure of company formation in Fujairah-Free Zones, one must be prepared to present a number of documents that serve as evidence and fulfill the requirements of the legal procedure. Included in the list of documents necessary for Fujairah Free Zone company registration are the following:
- A visa entrance stamp and a certified copy of the traveler’s passport from the UAE
- 2 copies of your address verification
- A reference letter from the bank
- Resumes of Shareholders
- Form for registering a business
Licenses Offered in Fujairah Free Zone
It is imperative that you know exactly what kind of financial activities you plan to do before deciding to open a business in a Free Zone in Fujairah. There are various company licenses available, each of which is tailored to a specific type of commercial activity. Let’s have a look at the various Free Zone licenses available in Fujairah.
1. Trading License
The individual who holds the trading license has the legal ability to freely import and export items that the Fujairah Free Zone Authority has authorized for this purpose.
The jurisdiction allows for import and export both within and outside of the UAE. The current fee for a Fujairah trade license is AED 2,500, but this figure is subject to change.
2. General Trading License
If you have a general trade license, you have the legal right to import, export, and re-export any of the Fujairah Free Zone Authority’s specified products. In this area, it is also feasible to engage in the local distribution of specific commodities.
3. Warehousing License
As the name implies, the holder of a warehousing license is granted authority to contract the services of a warehouse for the purposes of storage and distribution.
4. Professional Service License
This license entitles the holder to supervise the creation and operation of a professional Fujairah Free Zone company within the Free Zone. The license holder should be held accountable for supplying the services through their own creative efforts.
5. Industrial License
Any business person who intends to establish a manufacturing enterprise within the Free Zone must get an industrial license. Certain environmental regulations must be followed, as well as the need to ensure both the labor and the equipment.
How to Set up a Business in Fujairah Free Zone?
Here’s how you can setup a business in Fujairah free zone:
Step 01: Determine your Business Type
For each UAE Free Zone, there is supposed to be a list of permitted activities that may be carried out inside it. Broadcasting and media services; marketing; publishing; advertising; entertainment and music; event management; consultancy; filmmaking and IT services are all covered in the Fujairah Free Zone’s free zone activity list.
The Fujairah Free Zone allows for the vast majority of commercial operations, but you should still do a preliminary study before establishing your company there.
Step 02: Select your desired Company Name
Choosing a company name is the next step after confirming that the Fujairah Free Zone is a good fit for your organization’s intended commercial activity. Additional limits on trade names are imposed by the United Arab Emirates (UAE) in addition to the typical requirements for a unique trade name.
The names of cities inside the United Arab Emirates or the phrase “UAE” cannot be used in the names of businesses owned by UAE nationals. International, Global, or Middle East are all forbidden words in business names that begin with these terms.
On the Abu Dhabi Department of Economic Development website, you may search for trade names to determine whether the name of the business you want to form is available. The Fujairah Free Zone authorities must be contacted if you intend to reserve a business name.
Step 03: Register as a business
The following documents are required for the registration of a Free Zone company: the Board Resolution for the establishment of a new company, passport copies of officeholders, the Memorandum and Articles of Association of the company, a capital contribution certificate issued by a local bank, and a feasibility report for business activities carried out in the Free Zone.
Step 04: Apply for a business license
Apply for the respective license in accordance with your business type
Cost of Setting up Business in Fujairah Free Zone
The first charge for a zero visa license in the Free Zone of Fujairah is 21,500 AED. This charge covers the expenses associated with a virtual office. In addition, a refundable deposit of 5,000 AED is required.
Before beginning operations in Fujairah’s Free Zones, investors are required to submit an application for a specific type of license. This information is vital for understanding how firms are created in Fujairah’s Free Zones. Fujairah business licenses are reasonably priced and come with a choice of payment alternatives for business owners.
Due to the nature of certain commercial activities, those activities typically incur additional costs. A license to sell alcoholic beverages, for example, costs 50,000 AED. In addition, you will be required to put down an extra deposit of 50,000 AED.
License Renewal Cost and Process in Fujairah Free Zone
The process of renewing a company’s license in the Fujairah zone is straightforward and basic. It can be completed within one day. The fees will be less than the initial setup expenditures.
This Free Zone’s renewals are scheduled for the month of January. If you opt to incorporate your business in October, for instance, you will be responsible for paying the required license fees until the end of the calendar year. The following year, you will be required to renew your license in January. The renewal charge for a corporation with a Zero visa is 16,200 AED.
The Free Zone will request an audit following the conclusion of the second year of operations, but it is not required in the first year. You may be able to negotiate with the Free Zone to have the audit submission requirement waived if you were not conducting business throughout the applicable time period.
Business Activities Allowed in Fujairah Free Zone
Company creation in Fujairah is available for a wide variety of endeavors, including a significant number of specialized endeavors that are not available in any of the other Free Zones:
- Management and broadcasting
- Publication services
- Media and marketing services
- Music and entertainment services
- Television broadcasting
- Consultation services
- Services in Information Technology
The Fujairah Free Zone Authority was established twenty years ago with the intention of providing company owners with the required support and facilities for their businesses.
When investors choose to create a company in the Fujairah Free Zone, they obtain various benefits, one of which is the proximity to the Fujairah seaport, which adds to the many benefits they receive.
By utilizing weekly feeder vessels, Fujairah Free Zone firms enjoy easy access to the ports of the Arabian Gulf, the Red Sea, Iran, India, and Pakistan. Establishing a business in the Free Zone of Fujairah offers unparalleled opportunities for growth and development.
FAQs About Business Setup in Fujairah Free Zone
How many Free Zones are there in Fujairah?
There are two distinct Free Zones in Fujairah, which are as follows:
- Fujairah Creative City
- Fujairah Free Zone
Which Free Zone is best in the UAE?
There are six major Free Zones in the United Arab of Emirates that are considered the best, which are as follows:
- Jebel Ali Free Zone (JAFZA) Free Zone
- Dubai Airport Free Zone (DAFZA)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Dubai Multi Commodities Centre (DMCC) Authority Free Zone
- Ras Al Khaimah Free Zone (RAKEZ)
- Umm Al Quwain (UAQ) Free Zone
Which one is the best, depends solely on your business needs.
How many Free Zones are there in the UAE?
The United Arab Emirates (UAE) provides investors with more than 40 diverse Free Zones, in which both expatriates and investors from other countries are allowed to have full ownership of enterprises.
Can I transfer my business from Fujairah Free Zone to any other Free Zone?
It will not be possible for you to move your business to another Free Zone. You are however permitted to establish a new Free Zone location for a branch of your existing business.