02 09 2020

Company formation in the FEZ Umm Al Quwain. Part 2

Company formation in the FEZ Umm Al Quwain. Part 2

In the second part, we will tell you about the peculiarities of opening a company in the UAE on the territory of the UAQ FTZ free zone.

The functioning of the firms takes place in accordance with the rules established by the FEZ administration.

The list of types of companies available for registration in the free zone "UAQ FTZ":

- a company with only one owner;

- a company whose ownership rights belong to 2-5 owners;

- a branch of a company operating in the UAE, or a branch of a foreign company.

To begin with, you need to obtain an appropriate license to start activities. Each type of activity requires its own license, a company can engage in several types of activities at once and have several corresponding licenses.

What licenses can I get in the FEZ "UAQ FTZ"?

1 - License for commercial activities;

 This license is divided into two types:

- The first type allows you to trade only the designated categories of goods, as well as import, export, storage and distribution. There are restrictions on the number of goods included in one license, if the goods are similar, then their number can be 10, if different goods, then only 3.

- The second type of license allows you to trade in any goods included in the list of permitted in the FEZ "UAQ FTZ".

2 - Consulting license;

This license is suitable for firms planning to provide expert and professional consulting. With this license, you can conduct 2 similar activities.

3 - A document authorizing to conduct freelance activities;

The name of the license speaks for itself. If you want to carry out activities and work on your own behalf, as a freelancer, then you need to obtain the appropriate permission. Main directions: production of content and various media, technology, art.

4 - License for service activities;

The license is suitable for professionals with a diploma in their field. The license allows you to provide such services as courier, logistics, car rental, tourism and sightseeing.

Brief and main information about the licenses outstanding within the Umm Al Quwain Free Zone:

- If you are going to sell goods and services on the territory of the UAE outside the free zone, then for this you need a distributor or agent through whom you will be allowed to work.

- The obtained license to work within the FEZ does not allow working outside the FEZ.

- You are only allowed to carry out activities for which you have a license. Otherwise, heavy fines and sanctions are envisaged.

- If necessary, the company has the right to change the type of activity.

- The license is valid for 12 months from the date of issue. To renew, you must submit an application and conclude an updated office lease agreement.

- The term for obtaining a license is 1-2 business days.