Start business in UAE free zones

Fujairah Free Zone

verified by : Elena Ovchinnikova

17 Apr 2024

Company setup from 21,500 AED

Registration from 1 business day

Bank account Guaranteed

Residence visas for 2 years

Emirabiz experts’ opinion

Is FFZ suitable for your business?

— Yes

  • If your business is related to sectors such as oil and gas, maritime business, industrial production including heavy industry, as well as trade and international logistics.
  • If having a well-developed logistics infrastructure is a crucial criterion for you, FFZ is the ideal hub, offering three delivery methods: by sea, by air, and by land.
  • Near the free zone is the only international airport on the UAE's east coast, Fujairah International Airport, which serves the eastern UAE and northern Oman.
  • If you are looking for an affordable way to establish a manufacturing company in a free zone with developed infrastructure, including warehouses, land plots, and ready-to-move custom units.
  • If you trade with China, India, or Pakistan, FFZ offers excellent access to major sea and air routes leading to Asian countries through Fujairah Port and Fujairah International Airport.
  • If your business activities include those not available in other free zones, such as a Maritime license, Alcohol trading, Tobacco trading, etc.

— No

  • If you want to do business in Dubai or nearby, Fujairah Free Zone is not suitable for you. Dubai is approximately a 2-hour drive from Fujairah. Have a look at Dubai free zones.
  • If you consider using a virtual office. Fujairah free zones require a mandatory office rental before the license is issued.

FFZ company formation process

Company registration in Fujairah free zone is done quickly. The license will be done in 1 business day and the whole process takes about 2 weeks as you need to go through the initial approval, business plan review and other initial procedures.

Step 1. Determine which type of entity and the type of license offered by the FFZ free zone suits you.

It is crucial to approach this question carefully, as choosing the wrong activity, registration authority, or location can lead to errors during company registration, creating problems with opening a bank account or getting a residence visa.

In FFZ you can register one of the following legal entities:

  • Free Zone Establishment (FZE) - One shareholder
  • Free Zone Company (FZC) - Multiple shareholders
  • Branch of a local company
  • Branch of a foreign company

Step 2. Prepare the necessary documents. FFZ requires a minimal documentation package.

For individuals:

  • Passport with a 6-month validity
  • 2 photos
  • NOC (if the applicant holds the UAE residency visa)

For branch/subsidiary:

  • Board resolution
  • Certificate of incorporation
  • Memorandum
  • Valid license of the parent company
  • Passport copies of directors, shareholders
  • Certificate of good standing
  • Copy of the last audit of the parent company (for branches)

After all the documents have been compiled and the necessary paperwork has been drafted, it is required to pay the necessary fees for the registration process to proceed with the application.

Step 3. Receive the license and registration documents for the company, namely

  • Certificate of incorporation
  • License
  • Lease agreement
  • MoA and Articles of Association

Step 4. Receive an establishment card that contains information about your company and makes it eligible to sponsor residence visas.

Step 5. Apply for an entry permit.

If you apply from inside the UAE, after the entry permit is issued you have to change your visa status from the previous visa to a residence visa. If you are outside the UAE, then arrive in the country, get your entry permit stamped and then proceed with the rest of the residence visa process, submitting the necessary documents.

Step 6. Undergo a medical checkup and submit documents for a residency visa.

Step 7. Apply for an Emirates ID.

Step 8. Complete biometrics procedure in one of the Emirates ID centers.

Step 9. Once you have the results of your medical test and biometrics you can submit all the details for a visa approval. Your electronic visa will be sent to you by email. You can also find it in the UAE ICP app.

Step 10. Receive your Emirates ID. After the residence visa is issued, the Government prepares a plastic identity card which is an important document that is required to open a bank account, rent an apartment, pay bills or fines, etc. It also entitles you to many local services and discounts.

Step 11. Open a bank account. Apply to a UAE bank to open a corporate bank account. The approval may take a few weeks.

After receiving the account details, you can start running your business in the UAE.

FFZ licenses and cost

Fees of Fujairah free zone start with 21,500 AED for a zero visa license with a virtual office. There is a refundable deposit of 5,000 AED as well.

Other licenses depending on the type of facility are (AED):

Item License Incorporation Rent Utilities
License + Warehouse 50,000 AED 5,300 AED 230 AED per sq m 4,020 AED
License + Land 50,000 AED 5,300 AED 20 AED per sq m  

In case of a warehouse and a land plot you have to make a 50,000 AED refundable deposit.

FFZ offers the following opportunities for investors:

  • Trading: You can lease trading offices, which can be fully furnished if needed, to take advantage of licensing benefits for import, export, and re-export activities, as well as for local sales.
  • Distribution /Warehousing: Units of various sizes (starting from 500 square meters) are available for lease to support the import, export, and re-export of diverse commodities, as well as for general trading activities, including local sales.
  • Manufacturing: You have the option to lease pre-built units or request the Authority to construct customized units to meet your specific needs.

FFZ business activities

Company formation in Fujairah can be done for multiple activities, including a lot of specific activities that cannot be found in other free zones:

  • Maritime license
  • Alcohol trading
  • Tobacco trading
  • Real estate consultancy
  • Financial consultancy
  • E-commerce
  • Logistics Trading / consultancy in oil and petroleum products sector

There are certain license types that cannot be issued in Fujairah Free Zone such as ship agency, marine consultancy, ship building and repair, ship chandler.

FFZ facilities

Fujairah offers an extensive range of facilities for your business. It has ready-to-move offices, warehouses and plots of land for long-term lease. All facilities are subject to availability.

Facility type Description & prices
Flexi-desk A small company can rent a flexi-desk - a desk in a shared office in the premises of the free zone. Minimum rent for a flexi-desk is 18,000 AED per year. Refundable security deposit is 10,000 AED.
Virtual offices A virtual office provides you with a business address, mail and phone number, as well as office facilities without the need to rent a physical office. Minimum rent for a virtual office is 15,000 AED per year. Refundable security deposit is 5,000 AED.
Offices Small offices start from 20 sq meters. They can be combined to make a bigger office for your company if you need to. Minimum rent for a representative/ branch office is 20,000 AED per year. Refundable security deposit is 15,000 AED.
Warehouses Minimum size of a warehouse is 500 sq m. Rent price is 230 AED per sq m. Refundable security deposit is 50,000 AED.
Land plots Open land plots are available for long-term lease. Minimum plot size is 5,000 sq m. The land lease is 20 AED per sq meter (annually). Refundable security deposit is 50,000 AED.

Also, there is a requirement to pay one-time charges for the free zone utilities, which vary from 1,200 to 3,850 AED.

FFZ visa costs

Fujairah free zone visa fee is 3,399 AED.

E-channel fee is 2,205 AED.

Entry visa is usually issued within 3-4 days. After that medical check and Emirates ID application need to be done.

UAE residence visa stamping can be done in 2 working days.

Health insurance is not required for visa processing.

FFZ company license renewal

Renewal of the company in Fujairah zone is easy and straightforward. Renewal process will be completed when all required payments are made, documents are submitted, and the application is reviewed by the free zone authority. This could take up to one week. The fees will be less than the costs of the initial setup.

All renewals in this free zone take place in January. So if you incorporate your company in October, you will pay the license fees until the end of the calendar year and then renew your license for the next year in January.

Zero visa company renewal will be 16,200 AED.

Audit is not required in the first year, but the free zone will ask for it after the second year of operations is completed.

If you had no business all that time, you can negotiate the audit submission with the free zone in order to waive it.

FFZ company amendments

Corporate amendments of the company generally include:

  • Shares transfer
  • Change of Director
  • Change of Manager
  • Activity amendments

Most of them have to be done personally by the shareholders.

FFZ company liquidation

In the event of company liquidation you need to give a 5-6 months notice to the free zone authority. It can be done by an email from your registered mail ID.

You will need to do the following:

  • Return all original corporate documents
  • Close corporate bank account and get clearance
  • Do final audit
  • Pay the fees for the cancellation

The government fee for license cancellation will be 1,500 AED.

About FFZ

Fujairah free zone is one of the oldest UAE free zones. It is situated in the Fujairah Emirate adjacent to Fujairah Port.

The free zone focuses on industrial and maritime activities. A lot of heavy industrial and mining companies are located there.

It also has branches of all large petroleum companies in the region due to the convenient location of Fujairah port with the exit directly to the Indian ocean.

Fujairah free zone company setup is one of the preferred choices of the companies that are planning to operate in Fujairah Emirate. It has the biggest oil storage in the GCC area.

Benefits of Fujairah free zone company

  • Good for trading with Asia across the Indian ocean
  • Diversified logistics: by sea, by air, and by land
  • Specific activities: maritime, tobacco and alcohol trading
  • Cost-effective and quick business setup
  • Wide range of warehouses and land plots for manufacturing

Start your business in Fujairah FZ today

Top 10 questions about Fujairah free zone company

  • Can I open a bank account remotely?

    Basically no, as a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity. However, some banks allow remote account opening through their digital bank applications or website.

  • Do banks give debit and credit cards or loans?

    In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

  • Can a free zone company have offices outside the free zone?

    Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

  • Why do I need a flexi desk or office?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

  • Do free zone companies need to pay VAT?

    VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the goods or services are supplied outside the UAE. However, if the goods or services are supplied to customers within the UAE, the 5% VAT will be applicable.

  • Are there any other taxes to be paid?

    The UAE is free from personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

    On June 1, 2023, the UAE introduced 9% corporate tax, however, the UAE freezone companies that meet certain requirements as outlined by the Federal Tax Authority will be able to benefit from tax reliefs and possibly file the 0% corporate tax.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

  • Can you guarantee the opening of a bank account?

    While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

  • When and how should I renew my company? How much does it cost?

    Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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