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Umm Al Quwain Free Zone (UAQ FTZ), established in 1987, is a strategic and investor-friendly free economic zone in the emirate of Umm Al Quwain, UAE. It covers a vast area and benefits from a prime location near major seaports and airports including Dubai International and Sharjah International Airports, which facilitates smooth international trading and logistics. UAQ FTZ primarily caters to SMEs and startups, offering them ease of business setup with no minimum share capital requirement, 100% company ownership, and tax exemptions on corporate and personal income.
The free zone supports a diverse range of business activities, including trading, consultancy, manufacturing, and freelancing, with more than 1500 business activity options available. It provides modern infrastructure, cost-effective leasing options, dual licensing, and no restrictions on foreign hiring, making it attractive for entrepreneurs. Additionally, it offers full repatriation of profits and capital, exemptions from customs duties, and a simplified registration process, fostering a supportive environment for growth and innovation in business.
Key Benefits
✅ 100% foreign company ownership
✅ No corporate or personal income tax
✅ No minimum share capital requirement
✅ Full repatriation of profits and capital
✅ Strategic location near major airports and seaports
✅ Cost-effective business setup and leasing options
✅ Over 1,500 business activities permitted
✅ No restrictions on foreign hiring
✅ Exemption from customs duties
✅ Simplified and fast business registration process
✅ Dual licensing options available
✅ Supportive environment for SMEs, startups, and freelancers
Ideal For
- Entrepreneurs seeking a cost-effective business setup in the UAE
- Startups looking for a supportive and flexible environment
- SMEs aiming to expand regionally or internationally
- Investors interested in full company ownership and tax benefits
- Freelancers wanting an official trade license in a free zone
- International traders leveraging proximity to major ports and airports
- Manufacturers seeking affordable leasing and warehousing options
- Consultancy and service providers targeting Middle Eastern markets
Licenses in Umm Al Quwain Free zone
Commercial License
Allows businesses to engage in the trading, import, export, storage, and distribution of goods within and outside the UAE. Suitable for trading companies.
Consultancy License
For businesses providing professional advice and consultancy services in fields like marketing, HR, management, and other specialized industries.
Industrial License
Required for businesses involved in manufacturing or production that transform raw materials into finished goods, usually requiring physical premises.
Freelance Permit
Enables individuals to work independently as freelancers in creative, technology, media, or administrative fields, operating under their own trade license.
General Trading License
Covers a wide range of trading activities and allows a business to trade multiple products under one license, ideal for diversified trading companies.
Setup Process in Umm Al Quwain Free zone
1. Choose Your Business Activity
Select the specific business activity that aligns with your company’s goals. UAQ FTZ offers a wide variety of permitted activities across sectors such as trading, manufacturing, consultancy, and freelancing, catering to diversified business needs.
2: Select Your Company Name
Choose a unique and compliant company name following UAQ FTZ naming conventions. The name must not be previously registered, should reflect your business identity, and comply with legal and cultural guidelines imposed by the free zone authority.
3:Determine Your Company Structure
Decide the appropriate legal structure for your business, such as a Free Zone Establishment (single shareholder), Free Zone Company (multiple shareholders), or a branch of a foreign/local company, each with specific legal and operational requirements.
4: Prepare and Submit Documents
Gather all required documentation, including application forms, passports of shareholders and directors, a detailed business plan, bank reference letters, lease agreements, and No Objection Certificates if applicable, then submit them to the UAQ FTZ authority for review.
5: Pay Fees and Obtain License
Upon approval of your documents, pay the necessary registration and licensing fees. After successful payment and compliance checks, receive your official business license, granting you legal permission to operate within the free zone.
6: Lease Office Space (If Required)
Secure physical office, warehouse, or commercial space within the free zone that fits your business requirements. The lease is necessary for certain license types and supports regulatory compliance and operational needs.
7: Open Corporate Bank Account and Visa Processing
With your trade license in hand, open a corporate bank account in the UAE to manage your business finances. You can also apply for employment visas through the free zone for yourself and your staff, facilitating smooth business operations.
Key Documents Require
- Completed application form provided by UAQ Free Zone Authority
- Passport copies of all shareholders, directors, and managers
- Visa copies (if applicable)
- Detailed business plan outlining company objectives and activities
- Bank reference letter confirming the financial standing of shareholders or directors
- No Objection Certificate (NOC) from current sponsor for UAE residents
- Proof of address such as utility bills or tenancy contract for shareholders, directors, and managers
- Passport-sized photographs of shareholders and directors
- Memorandum and Articles of Association, notarized if applicable
- Lease agreement for office or warehouse space within the free zone
- Corporate Power of Attorney if a representative is appointed to register on behalf of shareholders
For branch registration, additional legalized documents like the Incorporation Certificate or license from the parent company may be required.
Umm Al Quwain Free zone Residency and Visas
Umm Al Quwain Free Zone offers a residency visa allowing entrepreneurs, investors, freelancers, and employees to legally live and work within the free zone. To be eligible, applicants must have a valid UAQ FTZ business license, be at least 18 years old, and hold a passport with at least six months’ validity.
The visa typically lasts 2 to 3 years and includes a work permit specific to the free zone. Visa holders can sponsor dependents subject to meeting income and accommodation conditions. The application process involves company registration, visa entry permit application, medical fitness testing, Emirates ID registration, and visa stamping. Visa quotas depend on office space leased, and visas allow opening corporate bank accounts in the UAE.
Aspect | Details |
Eligible Applicants | Business license holders, investors, freelancers, employees |
Minimum Age | 18 years |
Passport Validity | At least 6 months |
Visa Duration | 2 to 3 years, renewable |
Work Permit | Included with visa, valid for work within UAQ FTZ |
Dependent Sponsorship | Allowed if income and accommodation requirements met |
Visa Quota | Based on office space size leased (e.g., one visa per 9 sq. meters) |
Application Steps | Company registration, entry permit, status change, medical test, Emirates ID, visa stamping |
Benefits | 100% foreign ownership, tax exemptions, ability to open corporate bank accounts |
Conclusion
Umm Al Quwain Free Zone stands out as an exceptional choice for businesses seeking a strategic foothold in the UAE market. With its combination of 100% foreign ownership, zero corporate taxes, and no minimum capital requirements, UAQ FTZ removes traditional barriers to entry while maintaining a prime location near major transportation hubs.
The zone’s support for over 1,500 business activities, simplified setup process, and flexible licensing options create an ideal environment for SMEs, startups, and freelancers alike. Whether you’re launching a new venture or expanding regionally, UAQ FTZ offers the perfect blend of affordability, accessibility, and growth potential in the dynamic UAE economy.
Why Choose MenaHerald for Your Company Formation?
Let MenaHerald take the hassle out of your business setup. We offer expert guidance, assist with complete documentation, and streamline your registration from selecting the right license to arranging office space and processing visas.
Why Choose MenaHerald?
✓ End-to-end company formation for outsourcing businesses
✓ Transparent pricing with no hidden fees
✓ Specialized expertise in regulations and requirements
✓ Ongoing support for renewals and compliance
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