Fujairah is the seventh-largest emirate in the United Arab Emirates, located on the north-eastern side of the country. In addition, it is the only place in UAE that has no coastline on the Persian Gulf. However, it has not let this drawback affect the competencies of the emirate. With the presence of several business centers, investors prefer to go through the process of company registration in the Fujairah freezone. Investors have the freedom to choose from different forms of business activities and can acquire Fujairah free zone license for the same.
Additionally, there are plentiful opportunities offered for foreign investors and budding entrepreneurs to set up their businesses in this emirate. All they need to do is comply with the local laws and procedures while setting up a company in Fujairah. Here we will be talking about the benefits of setting up a company in Fujairah and how you can achieve it.
Fujairah Freezone overview
A historic emirate in the UAE, Fujairah Free trade zone was established in 1987 through a royal announcement to improve the amount of foreign investment in the country. At present, it homes different fields of industries such as the manufacturing, textiles sector, steel, etc. Moreover, the freezone provides separate storage facilities for companies to carry out different business activities. Thus, the seventh-largest emirate in UAE, thriving in industries like solar systems, construction equipment, industrial ladders, marine engineering, shipping services, etc., is a preferred destination for company registration.
Benefits of setting up a company in Fujairah freezone
- Strategic location
- Geographical diversity
- Full ownership of the company
- No specific requirement for start-up funds
- Exemption from taxes, corporate tax as well as income tax
- 24×7 assistance
- Customized business packages
- The physical presence of the owner is not mandatory while registration
- Multiple visa applications allowed
- No need for an office space
- Easy incorporation procedure
- No requirement of NOC(No Objection Certificate) from the local sponsor
- Provides a wide range of business activities
- Easy access to E-commerce licenses
- Cost-effective packages for Fujairah free zone license
- Easy to open a corporate bank account
- Fully-furnished facilities to suit all kinds of businesses
- Easy to sponsor for dependent visa
- Better connectivity with international markets
- The flexibility of setting up a business at the lowest cost
- Repatriation of investments and profits
- Modern and sophisticated communication system
- Efficient investment facilities
- Liberal policies to attract global investors
- Vibrant tourism prospects
You may like it: Steps to Procure Sharjah Free Zone License
Business Structures for Company Registration in Fujairah
The following business structures are present in Fujairah for business setup –
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Partnership company
When two or more partners form an entity with an intention to share profits is considered a partnership business. General partnership business comprises unlimited liabilities for the partners, whereas, in Limited Liability Partnerships, the liability of the partners is limited to the amount of their capital contribution to the company.
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Joint ventures
When two or more individuals come together with an intention to work on a specific activity or a specific project that too for a particular period, then it is called a Joint venture. The profits earned from this entity are shared between the parties of the Joint venture.
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Public companies
Public companies are also known as Joint Stock companies, which are formed with the accumulation of at least 10 members or partners. It requires a minimum of AED 10 Million for its establishment. Besides, the shares of this kind of company are traded on a stock exchange.
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Private companies
The minimum capital requirement to form a private company is AED 2 Million. Furthermore, it requires a minimum of three members for its establishment in Fujairah.
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LLC (Limited Liability Company)
LLCs are the most preferred business structure in the Fujairah. Besides, it requires only AED 1, 50,000 for its foundation. The major aspect of LLC setup is that the liability of each partner involved in the business formation is limited to the amount of capital invested.
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Branch offices
A branch office is basically an outlet of an existing establishment. It can be a domestic company or a foreign business. The parent company fully controls and supervises the activities of the branch. Hence, the foreign companies that are willing to set up their branch in the UAE can seek this business structure.
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Representative offices
The major purpose of establishing representative offices is to carry out promotional activities and market research, rather than business operations that generate revenue.
Types of Fujairah free zone license available
- Industrial license – The companies with this license can carry out industrial activities such as importing raw material, assembling, packaging, and finally, exporting the finished products.
- Trading license – With this license, the companies can import and distribute only the products specified in the license.
- Service license – Service license is especially for those professionals or firms who deal in a specific service delivery activity such as consultancy.
Eligibility Criteria for Company formation in Fujairah
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Minimum capital requirement
Every investor must fulfill the minimum capital requirement for company formation, depending upon the type of business he selects.
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Free zone requirements
There are certain rules and regulations to establish a company in the freezone and secure a Fujairah free zone license. Therefore, the investor has to mandatorily suffice all these requirements to form their company in any of the freezones in Fujairah.
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Visa requirements
Foreign investors and businessmen usually prefer freezones to start their business. Therefore, they must ensure to take the necessary steps in order to secure visas for non-UAE citizens working in the UAE.
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Executive requirements
Depending on the type of business, the investor must appoint required staff including the minimum number of executives to run the company smoothly as well as lawfully.
Procedure for company setup in Fujairah
- Determine the legal structure of your business
- Decide a trading name for the company
- Application for Fujairah free zone license
- Submit the requisite documentation
- Get the initial approvals from the concerned departments
- Make the payment for registration
- Obtain the license
- Documents required for company registration and license acquisition
- Completed Application form
- Business plan
- Trade name registration approval
- The existing license of the parent company (for branch offices)
- Passport copies of the shareholders
- Audited Financial Reports for two years
- Bank statements of the shareholders (6 months)
- MOA & AOA
- Emirates ID
Business licenses in Fujairah are issued by the Fujairah Municipality. However, in the case of certain special activities, one must seek approval and apply for a special license with the relevant ministry or department.
Summing up
Fujairah accommodates some of the most modern technologies and provides the highest living standards for its citizens. Therefore, it has become a major attraction of thriving business opportunities for foreign investors as well as a booming tourist spot.
Nevertheless, there are certain specifics that an investor must consider while opening a business in the Fujairah. To avoid any confusion, it would be helpful to seek an expert opinion before embarking on any of the steps.
Shuraa Business Setup has a large base of clients in Fujairah and the United Arab Emirates. Our professionals dedicate their valuable time and effort to guiding them and also assisting them through the entire process – from choosing the right business structure to obtaining Fujairah free zone license. With several years of experience, Shuraa experts offer extensive company formation services across all emirates of the UAE.
So, if you are thinking of setting up a company in Fujairah, then connect with Shuraa and get the best from the Shuraa specialists. For further details, call +971 44081900 and get a consultation free of cost. Share your chat queries with our advisors at +971 50 777 5554 or send an email at info@shuraa.com.
