Setting up a company in Fujairah and in other free zones within the United Arab Emirates (UAE) is a simple process, in addition to being fast and relatively inexpensive. While the technical and administrative aspects of setting up a business in the UAE may seem complex,
it’s in fact all very easy. Often, businesses set up a limited liability enterprise (LLE one shareholder) or a limited liability company (LLC minimum 2 shareholders) require only a share capital of 100,000 AED not to be issued.
After the discovery of oil in the mid-1960s, the UAE began its transformation into a financial epicentre. But for the first 20 years of this transformation, the country’s relatively small population and reliance on oil money meant it lacked the economic diversity to fully take advantage of its position on the world stage. And so it was that in the early 1980s the concept of the UAE free zone came to life.
One of the main goals of the UAE free zones was to diversify the economy by making the region attractive to a wider array of industries – essentially opening up the country to a much greater influx of foreign investment by making the investment climate more attractive. The original free zone opened in the 1980s, setting the template for the many that followed, and today there are around 40 across the UAE.
Fujairah has a perfect location, as the UAE’s only Emirate on East Coast, to thrive with commercial activities. Fujairah Free Trade Zone gives easy access for companies to reach the Arabian Gulf and the Red Sea and provides some of the greatest advantages to foreign investors.
Those that would like to open a business in the Fujairah Creative City Free Zone, face the most flexible and easy setup and the least amount of paperwork possible; the strategic position is coupled with one of the cheapest solutions in the entire UAE for those who wish to have a visa and attain a general international trading (import/export) license for any type of business. See types of ownership for attaining a commercial license, which is released by the Fujairah Municipality, and to know about the documents required for opening a branch in Fujairah Free Zone.
Why setup a business inside the UAE and at a FTZ? It provides 100% foreign ownership like you have in your home country with no taxes (100% tax exemption, besides import duties) and 100% repatriation of capital & profits. As a result, free zone companies have become a popular form of business registration in the UAE. Your choice of where to register will depend on your business objectives, of course. Five of the seven Emirates in the UAE (i.e., Dubai, Sharjah, Ajman, Ras Al Khaimah and Fujairah) have active free zones. All of the FTZs welcome foreign businesses.
Whether the business is geared for imports which is exempt from customs duty or exports that are free of any levies in free zones, the emirates has gained a reputation for its trading ports and free zones to facilitate foreign investment. Businesses can easily find companies that provide packages that are competitively priced and offer you the entire range of business setup services that will help you get everything done all throughout the establishment process to opening a bank account before applying for a license.
Again, as a free zone company, one must have a trade license in the activity of their intended business. It is appropriate to have a local sponsor (UAE national) involved when setting up a new business entity and a shareholder as either a Free Zone Establishment (FZE) – an entity with a sole owner – or a Free Zone Company (FZC) – an entity owned by 2 – 5 partners, and will help those to decide which free zone is the best option. Then the business will need to possess a license issued by a Free Zone that will allow them to operate within and outside the UAE.
DubaiBlog is Digital Media Partner of VirtuZone, official agent of the Fujairah Free Zone; if interested we can assist with identifying the best options for any business need.
Please contact us to find out more about this opportunity.