Business Setup in Umm Al Quwain

Umm Al Quwain

The Emirate of Umm-Al-Quwain is located along the coast of the Arabian Gulf North of Ajman, stretching over a distance of 24 kilometers long between Sharjah to the west, and Ras Al Khaimah to the east.

The Emirate has been headed by His Highness Sheikh Saud bin Rashid Al Mu’alla since 1981. This guide will focus on the details business environment in the emirate. 

UAQ at a Glance

UAQ also has a free trade zone where businesses may easily set up shop. This is especially useful for entrepreneurs and multinational firms wanting to enter the UAE market. Aside from the ease of obtaining a trading license, a new firm founded in a UAQ free trade zone may take advantage of a wide range of incentives. 

The most significant of these advantages is that enterprises established in free zones are exempt from paying taxes and enjoy high levels of secrecy. Visa allocations and adaptable office spaces for quick setup and work are also available.

Economic Development in UAQ

The economy of Umm Al Quwain is focused on fishing, pearl diving, agriculture, and animal production. This has been further diversified and enlarged to suit the emirate's development policy. The expansion of the creek and harbours, the building of Ahmed Bin Rashid Port and the introduction of a Free Trade Zone have all contributed to the city's industrialization. However, fishing is still a big deal in Umm Al Quwain, and it's still a big deal.

It is well-known for its supply of grouper and oriental soles and is a significant marine food exporter worldwide. Europe and the Middle East are two of the most critical regions in the world. The first poultry farm in the UAE is located in the Falaj Al Moalla. This region is also a significant provider of beef, poultry, and dairy goods to the local market.

Umm Al Quwain intends to increase its population and dedicate 20% of its territory to environmental reserves. The University of Queensland's 'blue economy' initiative seeks to treble GDP growth by 2031. The population in the emirate is 62,747. 

Rising Business Sectors in UAQ

The booming business sectors in the emirate are as follows:

1. Real Estate

As a result of the increased demand for short-term rental accommodations, developers and property investors are diverting their focus to assets such as villas, flats, and hotels. Aside from residential construction projects, this state has made significant progress in constructing highways and parks. Such development projects finally attract investors to Umm Al Quwain for investment.

Learn more on tips for generating new real estate business, if you wish to incorporate one. 

2. Trading

SMEs and international corporations alike have lauded UAQ's business-friendly environment. You don't have to deal with any obstacles while starting a business. Throughout the process, the administration will provide unwavering support, aside from a business-friendly environment. The emirate's positive attributes have yet to be recognized by business leaders.

Benefits of Business Setup in Umm Al Quwain

Here are some of the benefits of establishing a business in Umm Al Quwain:

• Foreign ownership is 100 per cent.
• 100 per cent capital and profit repatriation
• There are no limits on investment in any field.
• 0% corporate and household income tax
• Employees and staff of your firm are not required to pay a visa deposit.
• There are no limits on employing foreign workers.
• To improve convenience, the business registration procedure is straightforward and simplified.
• Special concessions are available through the Umm Al Quwain free zone ports.
• World-class facilities and infrastructure, with complete connection and security 24 hours a day, seven days a week.
• Warehouses, pre-built buildings, and office space are all available to meet your specific requirements.
• The government provides unwavering assistance, particularly to SMEs and entrepreneurs.

Legal Business Entities in UAQ

To start a business in Umm Al Quwain (UAQ), you must choose an appropriate business structure.

There are a variety of choices to consider. The following is a list of the numerous corporate entities permitted in the UAQ.

Limited Liability Companies

It's also known as an LLC and the most popular way to start a business. A minimum of two and a maximum of fifty partners are required for this sort of arrangement. Each partner is only accountable for the number of their capital shares.

Partnership Company

Two or more partners are jointly responsible for all of the company's liabilities under this business structure.

Joint Venture

This business is set up in UAQ with two or more partners sharing profit and loss. And the company is confined to the partnership arrangement; it does not apply to others.

Public Joint Stock Company

The capital is split into shares of equal value under this arrangement. The partner is solely accountable for the extent of its participation to the total amount; in such a firm, the capital share must be at least 10 million dirham.

Private Joint Stock Company

This business requires at least three founders, who must be fully subscribed to the starting capital and responsible for the extent of their capital shares.

Tax Scenario in UAQ

Because UAQ is part of the UAE, the city's taxation will be the same as the rest of the country. As a result, below is the tax situation that will be implemented in both the UAE and UAQ.

The UAE's Ministry of Finance announced on January 31, 2022, that the country will adopt a new corporate income tax system that would take effect on or after June 1, 2023.

The UAE's proposed corporate income tax, at 9%, would be the lowest in the region, save for Bahrain.

Starting June 1, 2023, any firm that begins its fiscal year on June 1, 2023, and finishes on May 31, 2024, will be subject to corporate income tax. As a result, the first tax return is planned to be filed by the end of 2024.

Any company whose fiscal year begins on January 1, 2023, and concludes on December 31, 2023, will be subject to corporate income tax on January 1, 2024, with filing due in mid-2025.

Business Jurisdictions in Umm Al Quwain Business Setup

There are two types of business jurisdiction present in the UAQ. These are as follows: 

Umm Al Quwain Mainland

Starting a business on the mainland of Umm Al Quwain is great for conglomerates, startups, and SMEs since it provides an appealing environment for investors. In addition, cost-effective renting/leasing options, expansion prospects, and much more are available to businesses.

Construction, commerce, and other prominent commercial areas are growing on the UAQ Mainland, both locally and globally. The UAQ Department of Economic Development is dedicated to assisting entrepreneurs in successfully establishing their businesses by issuing the appropriate business licenses based on their needs. 

Like any other Emirate, the UAQ Mainland provides business formats like joint partnerships, public and private joint-stock companies, sole proprietorships, branch offices, LLCs, and more.

Umm Al Quwain Free Zone

Umm Al Quwain is the newest addition to the UAE's list of free zones. Since its inception in 2014, it has grown in popularity tremendously. Umm Al Quwain dubbed the "free zone of the future," is an attractive free zone for business in the UAE because of its stable economy, open investment atmosphere, and cheap living and labour expenses.

 The free zone's excellent position, adjacent to the UAE's main seaports and international airports in Dubai and Sharjah, contributes to the appeal of the Umm Al Quwain free zone company formation.

Learn more about the UAQ free trade zone.

Process of Company Formation in UAQ

Minimal clearance timelines and short waiting periods make business setup in Umm Al Quwain more accessible. If you're searching for a rapid UAQ company registration, here are some easy things to take.

1. Pick a Business Activity

The first and most significant stage in starting a new business is to conclude the business activity since this will lead to the license being completed. To obtain a company license, you must first choose an activity. One cannot operate a business without a license.

2. Office Location

This phase is all about deciding on a place to work. You are free to choose any location that fits you and is suitable for your job. A variety of work environments are available, including an office, warehouse, workshop, or land. What you desire is determined by what you like or require.

3. Submit an Application

An application form must be completed and submitted to the authorities in this case. After submitting your application, you will get an invoice. The aforementioned sum must be paid in order to expedite the business registration procedure in Umm Al Quwain.

4. Submit an application for a license

After you've paid the costs, you can apply for a business license. The authorities will ask for certain documents, which must be submitted. You will be able to quickly apply for a resident visa after receiving the license, and you will also be able to create a bank account for yourself.

Approved Business Licenses in UAQ

Company businesses can receive a license based on their product, service, or business. The method for obtaining a license, as well as the laws and constraints on the activities that may be conducted.

1. Industrial License

An industrial approval is required for companies that do industrial operations such as assembling, manufacturing, and molding. For example, they might bring raw materials and components and export the finished product.

2. Commercial License 

A commercial license is required for commercial operations such as selling things, trading goods, and other similar companies. They can buy products and items, keep them, distribute them to sub-vendors, and sell them.

3. Consultancy License 

Firms that employ consultants must get a consultancy license throughout their operations.

General Trading License - A general trading license is used by large companies who want to trade various items. The company can trade on up to 10 distinct items with this license. As a result, there are several chances for expansion.

4. Freelance License

This is a one-of-a-kind license. The freelancing permit allows persons to work and conduct business under their name. This license is available to filmmakers, media personalities, celebrities in other professions, technological specialists, and others. Freelancing permission is granted to promote and support art, artists, media, and technology.

5. Micro Business License 

Micro-business licenses are for small businesses with a limited operating budget. They can conduct business from virtual offices with less capital than other companies.

6. Premium Consultancy Services 

In comparison to standard consultancy, the premium consultancy assists companies in a wide range of industries, including logistics, real estate, tourism, oil and gas, and legal matters.

Required Documents for Company Formation in UAQ

Here are the documents that need to be submitted for company incorporation in the UAQ:

• Passport Copy
• Business Plan
• AOA/MOA
• Lease Agreement
• Branding Certificate
• Naturalization Identification of UAE Nationals

UAQ Company Formation Cost

The cost for company incorporation is as follows:

Business Jurisdictions	Company Formation Cost	License Cost	Visa Cost
UAQ Free Zone	AED 23,950	AED 20,500	AED 3,200

Our Business Setup Services in UAQ

Business Setup Worldwide is a highly qualified professional team follows all of the essential steps to build a bespoke firm. We provide a full spectrum of business formation services from pre-incorporation to post-incorporation. Our team consists of highly qualified experts that can assist you with the following:

• Company setup
• Company registration
• Local sponsorship
• Public Relations Officer (PRO) services
• Accounting and bookkeeping
• Auditing
• Tax consulting
• Value Added Tax (VAT) registration
• Setting up a branch office in UAQ

Why BSW

A platform for forming a company in the UAQ is provided by Business Setup Worldwide. Our Sharjah-based professionals have a wealth of expertise and local understanding in this field. They can assist in making the treatment as painless as possible. Furthermore, because of our deep subject expertise and awareness of Emirate legislation, we can take care of our customers' passport, visa, and license requirements, ensuring that their activities are completed quickly and without the additional bureaucratic hassle. To learn more, please contact us immediately.