Umm Al Quwain Free Zone

Company setup from 13,900 AED 

Registration 3-5 weeks

Bank account Guaranteed

Residence visas for 2 years

Emirabiz experts’ opinion

Is UAQ suitable for your business?

— Yes

• If you are a freelancer, UAQ offers a wide range of activities, including creative professions and unique categories that are not available in other free zones. 
• If establishing a business in Dubai is not crucial for you, UAQ is located 40 minutes from Dubai International Airport and Sharjah International Airport, as well as being close to major seaports. The setup cost will be lower.
• If you have a startup or a small business, the Alpha package for 13,900 AED would be perfect for you, as it includes 1 license and 1 visa.
• If you have a large enterprise engaged in export and import and you need spacious office premises, industrial plots, and warehouses for storing goods. You can get land for industrial purposes starting at 1.75 AED per square foot. Plots are beginning from 2,500 sqm.

— No

• If you belong to high-risk nationalities - Egyptians, Syrians, Iranians - your visa will not be approved.
• If you are involved in trading and need affordable warehouses, they get taken very quickly.
• If you need installment payment options, they are not available in UAQ. You may look at Ajman free zone instead.
• For media activities SHAMS free zone would be more cost-effective.

UAQ company formation process

If you are in the UAE for the first time and want to establish a company with minimal financial and time investment, UAQ is the best choice for you. 

• No mountains of complex documents are needed - just your passport, proof of residence, and an entry permit visa are sufficient.
• There's no need to come and stay constantly in the free zone. You can conduct business from any part of the UAE. Personal presence is required only for sponsoring visa applications and for opening a bank account.
• It's easy to open, operate, and dissolve a company.

Step 1. Determine the legal entity of your business and license type. In UAQ, you can choose from a free zone establishment (FZE), free zone company (FZC) or branch. Every license can have up to 3 commercial activities if they are not related or 10 related ones. The consultancy segment allows 2 business activities per license.

Step 2. Prepare and upload the necessary documents. UAQ requires a minimal documentation package.

• your passport
• a utility bill as proof of residence
• entry stamp

Registration can be completed remotely - you don’t need to be physically present. Also you have to pay all the registration and processing fees at this step.

Step 3. Receive the license and registration documents for the company. They are as follows:

• Certificate of incorporation
• Trade license
• Shareholder certificate
• Lease agreement
• MoA and Articles of Association
• Establishment card (contains information about your company and visa quotes)

Step 4. Apply for an Entry permit to arrive in the UAE. If you are already in the UAE, then you have to change the status of your visa.

Step 5. Undergo a medical checkup and submit documents for a residence visa. You can do the medical test in Dubai - there is no need to travel to Umm Al Quwain. Note that when applying for the residence visa a medical insurance is not required in comparison to other free zones, for example DMCC.

Step 6. 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 7. 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.

UAQ licenses and cost

This free zone offers a wide range of licenses suitable for any type of activity, whether it's trading, services, consulting, or industrial production.

Each license permits a maximum of 3 unrelated commercial activities or 10 activities that are related. The consultancy as well as freelance and services segment allows 2 business activities per license.

There are various packages starting from zero visa companies, ending up with 1, 2 or 3 visa options. Even if you start with a zero visa package, it can be upgraded at any point of time. Packages can also be downgraded if you need to minimize the ongoing costs.

UAQ dual license 

You can have a dual Umm Al Quwain Free Zone license - it's an unbeatable offer of UAQ Free Zone. How does it work? You get a company setup with one category license and add another license from a different category for 2,500 AED only. For example, you open a trading company and add a consultancy license to it as an additional one.

UAQ business activities

UAQ Free Zone offers more than 1,500 business activities under the licenses mentioned above. You can engage in anything and at any scale – from selling your products and services through social media to large-scale automobile production.

The premium commercial and premium consultancy licenses offer special business activities that are not covered under general trading or services licenses. Examples include private airplane charter, ship management, asset management, leisure yachts, legal consultancy, and real estate consultancy, among others. Note that each license allows for only 1 premium activity.

UAQ facilities

All packages come with a flexi-desk facility - a desk in a shared office, which serves as a minimum office requirement in the UAE.

Umm Al Quwain Free Zone offers offices and warehouses as well, which means it would suit any type of business.

UAQ is located between the Ajman and Ras Al Khaimah free zones, a 40-minute drive from Dubai. Additionally, it is close to Dubai and Sharjah airports, as well as developed seaports, facilitating import and export for businesses.

UAQ visa costs

Umm Al Quwain Free Zone visa is one of the most affordable visas in the UAE. All visas are valid for 2 years.

Umm Al Quwain residence visa fees (AED):

Health insurance is not required for visa processing.

Visas for dependents can be obtained quite easily. Just remember that the main requirements for that include:                                        

• Apartment rent
• Attested in the UAE Embassy birth/marriage certificates
• Stamped resident visa of the sponsor

Resident visas can be opened remotely without your visit to UAQ. You can reside in any of the Emirates - you don't need to live in UAQ if you have a visa from there.

It may be challenging to get resident visas for citizens from so-called high risk countries, such as:                                        

• Syria
• Egypt
• Sudan
• Turkey
• Bangladesh
• Iraq
• Algeria and others

However, a security approval can be done prior to payment for the company registration to check the possibility of getting the visa. Keep in mind that the high risk list is frequently changing and also differs in various Emirates, so there is always an option to accommodate a person of any nationality.

Business setup in Dubai is usually recommended for such nationalities due to less immigration restrictions in this Emirate.

UAQ company license renewal

UAQ company renewal can also be done remotely just like the registration. You will need to make the payment and submit a new copy of the flexi-desk lease agreement to the free zone.

Audit reports are not required.

Renewal is usually done within 2-3 days.

Upon renewal you will receive a new license and flexi-desk lease agreement.

Renewal costs are usually slightly less than the incorporation fees.

The Alpha Business Package can be renewed for just 10,500 AED.

UAQ company amendments

Possible amendments of the company include change of corporate name, business activity, shares transfer, change of manager/director, etc. Most amendments can be processed remotely.

Shares transfer procedure would require either personal presence of the shareholders or a notarized Power of Attorney to a truster person, who can come on their behalf.

UAQ company liquidation

Company liquidation also requires either a personal presence of the owner or a visit of a PoA holder. You will need to return all original documents of the company to UAQ, make the payments and wait about 1 month for the procedure to be finished.

The liquidation procedure will be the following:

1. First, you have to provide some obligatory documents:

• a deregistration form
• a visa cancellation form
• copies of passports and visas for all visa holders
• shareholder resolution signed by the shareholders and stating the reason for the company liquidation

2. Pay cancellation fees, namely

• license cancellation - 3,000 AED
• establishment card cancellation - 250 AED
• visa cancellation - 350 AED per visa (if the applicant is inside the UAE, otherwise it is 600 AED)

3. An advertisement in the newspaper is placed for 15 calendar days announcing the liquidation of your company.

4. After this, the process of the shareholder visa cancellation starts (4-5 days).

5. The deregistration letter is sent to your email confirming the cancellation of your company.

About Umm Al Quwain Free Zone

Umm Al Quwain Free Trade Zone was founded in 1987, but it became known to the public only after 2014 when it had undergone some restructuring and started marketing its services.

It is located in the smallest Emirate of the UAE but offers all the facilities that larger free zones are proposing.

One of the most appealing aspects of UAQ FTZ is its affordability, making it the cheapest option for startups in the region. With business setup packages starting from as low as 13,900 AED, entrepreneurs and small businesses can benefit from a low-cost entry into the vibrant UAE market.

UAQ FTZ is particularly suitable for businesses for whom the exact location within the UAE is not a critical factor.

Additionally, UAQ is an excellent choice for companies involved in import and export activities. The free zone offers easy access to the nearby port, facilitating smooth logistics and efficient handling of goods.

To sum it up, UAQ is likely to suit almost any business activity. We recommend this free zone for those who need cheap and quick UAE business setup or residency and don't care about the location.

An alternative solution for those who did not find suitable activity in Umm Al Quwain Free Zone could be Hamriyah Free Zone company registration.

FAQ

Can I open a bank account remotely?

No, 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.

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 transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

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, companies registered in UAE free zones may be granted corporate tax exemption if they meet the criteria for qualifying activities.

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.