Fujairah is one of the top business destinations in the UAE due to the presence of some progressive free zones. Foreign investors always favour the landscape of business setup in Fujairah free zones due to certain unique factors such as cost-effectiveness, excellent connectivity, and ease of doing business. Foreign investors are also attracted to the scenic beauty of the emirate which is blessed with mountains. Moreover, the leading free zones in Fujairah are known for providing investor-friendly regulations and easy licensing procedures.
Foreign investors need to weigh in on each of these benefits before choosing a few zones for company formation in Fujairah. The emirate is also known for residential and commercial places offering low rental schemes. Ease of doing business coupled with cheaper yet higher standards of living are the major advantages of choosing Fujairah free zones. Entrepreneurs can get assistance from business setup consultants in UAE to quickly incorporate a free zone company in the emirate. Before that go through some of the best-known aspects of Fujairah free zones as listed here:
Strategic Location of Fujairah Free Zones
Foreign investors keen on export, import and re-export activities benefit from the strategic location of Fujairah as it’s the only emirate located on the East Coast. Affectionately nicknamed as the ’lung of the UAE’, Fujairah is buzzing with commercial activities, especially since the launch of the free zones. Company formation in Fujairah free zones provides the investors with the triple benefit of ACE, which means Accessibility, Connectivity, and Economy.
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The free zones in Fujairah are located near the Port of Fujairah and have easy access to all Arabian Gulf ports, the Red Sea, Iran, India and Pakistan on weekly feeder vessels. The free zone offers an excellent logistic link to the world: by air through Fujairah International Airport, by sea through Fujairah Sea Port, and by road to the Middle East and beyond. Free zones in Fujairah have access to the world’s major shipping routes, a fine port & an airport, making them the best place for doing business.
Leading Free Zones in Fujairah
The free zones in Fujairah play an integral role in bolstering the economic robustness of the emirate. The free zones have transformed the industrial landscape of the emirate along with generating huge employment opportunities. Foreign investors can leverage the free zone benefits by availing of bespoke business setup services in Fujairah. The following are the two leading free zones currently operating in Fujairah:
As the name suggests, Fujairah Creative City Free Zone targets investors and entrepreneurs from creative sectors such as media and entertainment. Creative City’s focus activities include Media, Events, Consulting, Education, Communication and Marketing, Music and Entertainment, Design and Technology etc. The free zone offers robust office spaces and other facilities for media businesses to grow and thrive in the region.
Fujairah Free Zone Authority is a general-purpose free zone offering a wide range of business activities. Foreign investors select Fujairah free zone mainly to carry out export, import and industrial activities. The free zone offers a set of unique licenses and robust infrastructure to facilitate a favourable environment of business setup in Fujairah.
Common License Types in Fujairah Free Zones
Investors need to choose a license that authorises their desired business activity in Fujairah free zones. License selection is a crucial aspect of business setup in Fujairah free zones and must be performed after proper research. Instead of researching by themselves, entrepreneurs can entrust the task with business setup consultants in Fujairah. Here is a list of common license types in Fujairah free zones:
A trading license is mandatory to carry out export, import, distribute or store products specified in the license. With a normal trading license, license holders can trade in only a similar range of products. Business setup advisers in Fujairah can assist investors to quickly obtain a trading license.
General Trading License
A general trading license authorises the trading of a diverse range of products. Unlike a normal trading license, a general trading license allies the trading of an unlimited number of goods. Even items that are not similar can be traded with a general trading license in Fujairah free zones. Services of company formation experts in Fujairah can ease the hassle associated with obtaining a general trading license.
A service license in Fujairah free zones authorises activities of professional service providers. Consultancy services, accounting & bookkeeping services, graphic design services, media are some of the common service license activities permitted in Fujairah free zones. Most of the activities in Fujairah Creative City fall under the service license category. Companies providing business setup services in Fujairah can simplify the process of obtaining a service license.
Types of Legal Entities in Fujairah Free Zones
Investors are required to choose an appropriate ownership structure for their proposed company in a Fujairah free zone. The legal structure or legal form is determined as per the number of shareholders in the company. Business set up consultants in Fujairah can advise the applicants on the legal entities available in Fujairah free zones. Check out the following list:
Free Zone Establishment
A Free Zone Establishment (FZE) in a Fujairah Free Zone is composed of a single shareholder. Both a natural person (individual), as well as a corporate entity (juridical person), can be a shareholder in Fujairah Free Zone FZE. Company set up advisers in Fujairah can help entrepreneurs to navigate the process of establishing an FZE.
Free Zone Company
A Free Zone Company (FZC) is an independent legal entity formed by at least two shareholders. Shareholders in an FZC can be an individual, corporate entity or a combination of the two. An FZC in Fujairah Free Zone is akin to a Limited Liability Company (LLC) having independent financial liability. Investors with access to bespoke business setup services in Fujairah won’t face any trouble in incorporating an FZC.
A branch office is an entity whose legal identity is dependent upon its parent company. Fujairah free zones allow both foreign companies and UAE companies to open a branch office within the free zone. Branch offices are required to carry out activities that match the activities of their parent companies. Business setup advisers in Fujairah can help companies to open a free zone branch office.
Process of Business Setup in Fujairah Free Zones
The process of company formation in Fujairah free zones can be completed in a few easy steps. Once the license and legal structure have been identified, the process becomes much easier. However, applicants must carefully draft all the mandatory documents to avoid delays in license issuance. The assistance of company formation consultants in Fujairah will come in handy to expedite the incorporation procedures. The entire process can be completed in the following steps:
- Selection of business activity
- Determination of a legal form
- Reserving a name for the company
- Submission of documents
- Selection of a facility
- License issuance
- Visa processing
- Bank account opening
Benefits of Business Setup in Fujairah Free Zones
Company formation in Fujairah free zones allow investors to avail themselves of a wide range of benefits related to location, free zone status etc. Leveraging all such benefits will enable the entrepreneurs to successfully carry out their operations and achieve business success eventually. The following are some of the benefits offered by free zones in Fujairah:
- 100% foreign ownership
- 100% repatriation of capital & profits
- Zero corporate tax
- Zero personal income tax
- Strategic location
- Excellent connectivity to major trading hubs
- Availability of all services under one roof
- Quick & easy incorporation
- World-class facilities
Regulatory Compliance in Fujairah Free Zones
Companies licensed by Fujairah free zones are required to meet regulatory requirements such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulations (ESR) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Non-compliance will attract hefty penalties and other punishments such as suspension of trade license and exchanging information with foreign competent authorities. Even companies undergoing liquidation in Fujairah free zones are required to meet such obligations. However, business setup consultants in Fujairah can assist company owners to ensure compliance.
Bespoke Business Setup Services in Fujairah, UAE
The process of business setup in Fujairah free zones is recommended to foreign entrepreneurs on account of benefits such as strategic location, tax exemptions, robust infrastructure, world-class facilities etc. However, incorporating a company may involve some complex steps and requirements that warrant the assistance of business setup consultants in Fujairah such as Jitendra Business Consultants (JBC). JBC is a leading provider of business setup services in Fujairah with over 20 years of experience.
JBC has a team of highly qualified consultants who can resolve issues such as determining a corporate structure, drafting legal documents, processing visas, opening bank accounts etc. We also provide regulatory compliance services related to ESR, UBO, and AML-CFT. Our highly qualified business setup experts can help foreign investors enjoy their business setup process without worrying about the bureaucratic red tape and legal formalities.