Establishing a company in the Fujairah Free Zone

Establishing a company in the Fujairah Free Zone is an interesting option for investors who want to take advantage of the evolving economic environment and business facilities available. Fujairah Free Zone offers a variety of features and benefits that make it an ideal business destination. These benefits may include tax exemptions, complete freedom of ownership, easy licensing procedures, modern infrastructure and transparent regulatory laws.

The process of establishing a company in the Fujairah Free Zone is often simple and easy, making it easier for investors to get started in their business quickly. It requires an appropriate license for your business activity and registration of the company with the competent authorities. In this article, we will explore the procedures necessary to establish a company in the Fujairah Free Zone and provide you with practical tips to achieve success in your business.

Thanks to its strategic location and advanced infrastructure, Fujairah Free Zone provides easy access to regional and global markets. You will be able to exploit international trade opportunities and expand your business thanks to the available logistical networks and benefit from modern facilities.

Whether you want to establish a trading company, a service company, or even a manufacturing company, establishing a company in the Fujairah Free Zone can be a favorable investment option for you. In this region you will find a distinguished business environment that fosters innovation and growth, and provides opportunities for cooperation with strong global and local companies.

In this article, we will explore some of the essential aspects of setting up a company in the Fujairah Free Zone. We will discuss the legal and administrative procedures necessary to start a business, in addition to the benefits you will achieve from establishing your company in this distinguished economic environment.

Establishing a company in the Fujairah Free Zone

Steps to establish a company in the Fujairah Free Zone

To establish a company in a free zone in Fujairah, follow these basic steps:

1. Choose the type of company: Decide what type of company you want to establish, such as a limited liability company, a sole proprietorship, or a public company. Each type requires different procedures and has different financial and administrative requirements.
2. Choosing a business activity: Select the business activity you wish to practice in the Fujairah Free Zone. Ensure that the activity is permitted within local laws and complies with the terms of the free zone.
3. Preparing the necessary documents: Collect the documents required to register the company, such as the passport for shareholders and managers, the commercial plan, the partners’ agreement if any, and experience certificates if required.
4. Submit a registration application: Submit a registration application to obtain a commercial activity license in the Fujairah Free Zone. All required documents must be submitted with the application and the prescribed fees must be paid.
5. Obtaining the necessary approvals: Wait to obtain the necessary approvals from the competent authorities in the Fujairah Free Zone, such as approval of the final license and environmental permits if necessary.
6. Company incorporation and final registration: Once approved, incorporate the company and issue the necessary certificates, such as a registration certificate and trade license, and register the company in the local commercial registry.
7. Opening a bank account: Open a bank account in the name of the company in one of the approved banks in the Fujairah Free Zone, and be sure to secure all the documents required by the bank.
8. Renting an office and securing the necessary places: Get the office in which you will conduct your business, and ensure that the office adheres to the requirements of the rental contracts required in the Fujairah Free Zone.

The different types of companies that can be established in the free zone

In a Fujairah free zone, several different types of companies can be established according to business needs and strategies. These are some of the common types of businesses that can be established in this region:

1. Limited Liability Company (LLC): This is the most common option, as the company’s shareholders can be individuals or companies. Shareholders have limited financial protection and are not personally liable for the company’s debts.
2. Sole Proprietorship: Managed by one person who is responsible for all activities and obligations of the company. The owner has complete control but has full personal liability for the business’s debts.
3. Public Company: Individuals can carry out business activities that involve dealing with the public, but require shareholders to contribute capital.
4. Joint Limited Liability Company (LLC Partnership): Each partner has limited financial protection and participates in the management of the company.
5. Investment company: used to invest in stocks and other assets within the Fujairah Free Zone.
6. Branch of a foreign company: A foreign company is allowed to open a branch in the Fujairah Free Zone to expand its activities and projects.

Documents required to establish a company in the free zone

To establish a company in a free zone in Fujairah, the following documents are usually required:

1. A copy of the passport: for all shareholders and directors concerned with the company.
2. Birth certificate: for natural persons concerned with the company.
3. Business Plan (Business Plan): A document that outlines a company’s goals and operational and financial plans.
4. Partners Agreement (if there is one): A document that defines the rights and obligations of each partner in the company.
5. Copy of personal statement (CV): for managers or key partners in some cases.
6. A bank letter to shareholders: proving their ability to finance the company’s activity.
7. Personal authorization signed by all shareholders (if necessary): gives the authority to the appointed person to conduct the procedures for establishing the company.
8. A copy of the lease contract for the company’s office in the free zone: proving the company’s location and its compliance with local requirements.
9. Business license application form: to obtain a business license in the free zone.

Permits required to establish a company in the free zone

To establish a company in a free zone in the UAE, you usually need the following permits:

• Incorporation Permit: It is issued by the Free Zone Authority and is considered an official approval to establish the company in the designated free zone.
• Business Activity Permit: This specifies the type of commercial activity that the company can practice in the free zone, and is obtained after determining the type of activity that the company will carry out.
• Lease Permit: If the company intends to rent an office or space in the free zone, this permit requires presenting the lease contract.
• Building Permit: If the company plans to build or modify a building in the free zone, this permit may be necessary.

Expected costs of establishing a company in the free zone

The costs of establishing a company in a free zone in Fujairah may include several main elements without mentioning specific numbers:

• Registration and licensing fees: These fees include company registration and business license fees in the free zone.
• Administrative services fees: These fees include administrative services paid to the concerned authorities in the free zone.
• Costs of legal and accounting consultations: You may need consulting services to help you prepare documents and comply with legal and accounting requirements.
• Rent and office costs: If necessary, you should be prepared to pay rental fees for the office or space that you will use for the company in the free zone.
• Accommodation and work costs: If you need a residence visa or work permit for managers or employees, there may be costs associated with these procedures.
• Labor and staffing costs: If a company needs to hire employees, it may need to factor in payroll and benefits costs.
• Advertising and initial marketing costs: To target your market and potential customers, you may need to invest in advertising and initial marketing campaigns.

At the conclusion of this article, we realize that establishing a company in a free zone in Fujairah represents a strategic step with great advantages for investors and entrepreneurs alike. The Freedom Zones in Fujairah provide a fruitful investment environment characterized by full tax exemptions, flexible policies for foreign ownership, and advanced infrastructure, making them attractive for companies seeking growth and expansion in the local and regional market.

By following the simple procedures for establishing a company and taking advantage of the financial and administrative facilities provided, investors can build a successful and sustainable business in a free zone in Fujairah. Being in this region enhances opportunities for growth and innovation, and contributes to enhancing competitiveness at the regional and global levels.

The most important frequently asked questions about establishing a company in the Fujairah Free Zone