02 09 2020

Company formation in the FEZ Umm Al Quwain. Part 3

Company formation in the FEZ Umm Al Quwain. Part 3

In the third part, we will talk about the nuances of the commercial activities of companies, as well as the process of registering a business in the FEZ Umm Al Quwain.

A business registered on the territory of the FEZ "UAQ FTZ" has the right to carry out activities within the FEZ, as well as to be a player in the international market.

Activities inside the Free Zone:

- Having provided the necessary package of documents, a business can transport goods, both inside and outside the Free Zone;

- Goods imported from abroad to the FEZ are not subject to customs taxes and duties;

- Also, the duty-free regime applies to the export of all goods to other free economic zones in the UAE or to other countries of the world;

The import of goods from the FEZ to the domestic market of the Arab Emirates is equivalent to the import of goods from abroad, even if the products were produced within the free zone. This type of goods is not subject to duty-free regime and customs duties will need to be paid.

If you import goods into the territory of the countries of the Cooperation Council of the Arab States of the Gulf from the free zone, then you also pay customs tax.

Activities in the UAE outside the SEZ:

Companies in a free zone can sell goods on the local market only through an agent or trader.

If your company offers services to other companies, then you have the right to carry out activities in the FEZ itself.

Activities on the global market:

There are many opportunities for companies to sell goods on the international market, for example, the absence of customs duties. Also, there is a possibility of production and storage of goods in a warehouse for subsequent re-export.

Companies have ports and airports at their disposal in Dubai.

Stages of the company registration process in the FEZ:

- Formation of a package of documents;

- Proof of residential address;

- Checking and analysing the selected type of activity;

- Checking of at least three options for the name of the company, as well as information about the managers of the company;

- Office space rental;

- Provision of the company's Articles of Association and Memorandum of Association;

- The process of approving 1 company name;

- Payment for registration.