Umm al Qaiwain shortly known as (UAQ) is the least populated state of the UAE; and its land area is the second smallest among the state of the UAE. It represents only 1% of all of the UAE. Umm Al Quwain is place between Ras Al Khaimah and Ajman on the West Coast. Umm Al Quwain has a coastline stretching to 24kms. As an emerging state expat are disparately looking for business setup in UAQ. Umm Al Quwain is not as active with business as Dubai, Abu Dhabi or Sharjah; the main business which expat are looking when they are going for business setup UAQ is trading; real estate and tourism. But now a day industry business setup in UAQ is also something which is very popular in the region.
Business setup in UAQ
There are two main areas where we can setup business in UAQ. One is mainland area and the other is free zone of UAQ. For mainland business setup in Umm Al Quwain we need a local sponsor or a local service agent. While in Umm Al Quwain free zone expat can hold 100% share of his business.
Business setup in Umm Al Quwain Mainland
Business setup in Umm Al Quwain Mainland requires at least 2 partners and maximum of 50 partners. At this point let me tell you one thing; or you can say one basic point about Business setup in UAQ. You need to keep in mind. That is Business setup in UAQ needs at least one local partner. If you are going to setup professional business then local partner will act as a service agent. In this case expat will hold 100% share of the business. But if you are going to open a commercial business then local will hold 51% share of the business. And an expat partner will hold maximum of 49% of share in UAQ business setup. In UAQ mainland an expat can carry on any type of business except; that is banking, an investment as well as insurance.
Legal form of Business setup in Umm Al Quwain Mainland
Following are the main form used in UAQ business setup.
Limited Liability Company: Shortly known as LLC Company. In this type of a business setup in Umm Al Quwain a minimum of 2 and maximum of 50 partner are require to setup. Every partner is liable only to the extent of their shares in the capital.
A partnership: In this type of a business setup in UAQ; 2 or more partners are jointly liable in all their money in the company’s obligations.
Joint venture: This type of a business setup in Umm Al Quwain; is compose of two or more partners for the purpose of sharing profit and loss. And the company is limited to the relationship between the partners does not apply to others.
Limited Partnership: In this type of a UAQ business setup; partner or more liable to his money as well as partner money; And shall not be liable in the company’s obligations only to the extent of its share capital.
Public joint stock company In this type of a business setup in UAQ; the capital is divid into shares of equal value. The partner is only liable to the extent its contribution to the total money, the capital share for such a business is at least 10 million dirhams. IT offers shares for public subscription with the approval of the founders.
Private joint stock company: In this type of a UAQ business setup; required at least 3 founding people and those subscribed by the founding capital in full and are responsible to the extent of their shares in the capital.
Business setup in Umm Al Quwain free zone
UAQ Free Zone is a newly designe Free Zone it start his operation in 2014 early. The previous name of Umm Al Quwain free zone was Ahmed Bin Rashid Free Zone (ABRFZ). UAQ Free Zone is 55 minutes away from Dubai Airport in the state of Umm Al Quwain. It can be access easily from the old Emirates road. Umm Al Quwain free zone capable to grow quickly in the next few years because of the benefits it offers. Business setup in Umm Al Quwain free zone is a best choice for those; who is looking for an easy and economical setup.
Why Business setup UAQ free zone
Like all other free zones UAQ free zone offer to expat to own their business 100%. That is no need of local sponsor to start your business. UAQ Free Zone Company is a tax free entity; So it can import as well as re export into globally without any custom duty. This means that the UAQ Free Zone Company tied up in international trade without any custom duty. UAQ Free Zone can also release their goods and save them as stocks for re-export without tax. UAQ Free Zone business can freely do business inside a free zone and internationally. Umm Al Quwain free zones Service companies can provide services from inside the Free Zone into UAE. UAQ free zones company can sell their goods in the local markets through a local dealer.
Benefits of business setup in UAQ free zone
100% ownership of the business.
0% corporate and personal tax for business setup in UAQ free zone.
No restrictions on currency
Wide range of business activities allowed
100% tax exemption within UAQ Free Zone
Business setup in UAQ free zone is simple and fast
100% repatriation of capital and profits
Strategic location with access to over 20,00,000 customers
Excellent customer support
No limits on hiring foreign employees
Ideal location for micro and SME
Umm Al Q Free Zone is close to two international airports and major sea ports
Modern and investor friendly rules and regulations
Licenses for business setup Umm Al Quwain free zone
Consultancy License: This type of a license is issued for business setup UAQ free zone to carry on consultancy activity. Such as, IT services, Management Consultancy, Accounting Services and HR Consultancy Services.
Trading License: This type of a license is issue for business setup UAQ free zone; that is to carry on simple commercial Activity. Such as, all types of trading activities.
General Trading License: This type of a license is issue for business setup UAQ free zone; that is to carry on commercial Activity. Such as, multiple product trading; because almost all categories of products can be a line of work under this type of a license; except Alcohol, Tobacco, Pharmaceuticals and Crude oil are not allow.
Freelancer Permit: This type of a license is issued for business setup UAQ free zone; for those who have some professional expertise. Such as, Photographers, even planners, musicians, performers and may other categories. But for this type of license an educational certificates as proof of expertise are requires.
Micro Business License: This type of a license is the cheapest option in entire UAE. The license is appropriate to those who would like; to begin with least budget and do not need a physical office or a visa. This is almost equal to an offshore license. They can start a Trading or a consultancy business using this cheapest option.