The Emirate of Fujairah is one of the most popular routes chosen by investors and entrepreneurs that want to set up their businesses in the UAE. This is because the setup process is pretty straightforward and it also offers cost-effective licenses. Therefore, the business setup in Fujairah should be among your options.
Fujairah is located on the East Coast of the UAE, and it is a place that welcomes investors by offering them many benefits. Although it is the Emirate with less population in the country, this does not mean that it is a place with no opportunities. On the contrary, you can find great connectivity, the possibility to trade easily, obtain support for the movement of equipment, access to raw materials, and much more that can be necessary to run your business.
The UAE is known for being a commercial hub and a place to conduct business optimally. In this regard, Dubai and Abu Dhabi Mainland are the most popular options to incorporate a company. Nevertheless, there are many other locations that offer great opportunities and growth potential to businesses.
Thus, if you are planning to set up shop in this incredible location, you should consider the company formation in Fujairah. But, before starting the process, it is essential to know everything about it so you can be well prepared and plan the strategy of your business.
Here in Connect Middle East, we offer a wide of business setup packages to help you establish a solid presence in the UAE.
Mainland company formation in Fujairah
To carry out the business setup in Fujairah you must decide in which zone or jurisdiction you want to establish your company. One of the options investors have is establishing a Mainland Company in Fujairah.
This type of company must comply with the following requirements:
- It must have at least 2 shareholders and 50 as a maximum.
- It needs to have a local partner that will hold 51% of the shares
Moreover, a Mainland Company in Fujairah can engage in several activities, nevertheless, some of the activities that are not available for foreigners are banking, investment, and insurance.
The business setup in Fujairah of a Mainland Company offers several benefits, such as low operational cost, access to advanced infrastructure, and the possibility to trade within the entire territory of the UAE. However, a foreign investor cannot own 100% of the shares of the corporation.
According to the UAE legislation, a foreigner can hold 49% of the shares of a Mainland Company in Fujairah, while a local partner should hold the remaining 51%. This can be a drawback for business people that want to have complete ownership. But, those that want to trade within the UAE territory can cater to thriving national markets such as that of Dubai, and may not see this as trouble.
Moreover, Mainland Company has many more options for the type of legal structure. Thus, you may incorporate a Limited Liability Company, a Professional Company, a Sole Proprietorship, and many more.
Another great advantage of Fujairah Mainland Company is that you can get your business license in a day. So, if you are considering establishing your organization in a place that offers quick incorporation, Fujairah Mainland should be your choice.
Business setup in Fujairah Free Zones
There are three Free Zones where you can carry out your business setup in Fujairah. The advantage of these jurisdictions is that they are close to the Port of Fujairah, thus if you are considering carrying out commercial or logistics activities, this can be the perfect place for you.
The Free Zones also offers a streamlined business setup procedure, and the best part is that you can have 100% ownership of your business. By being the sole owner of your company and getting the chance to trade with international markets, you can be sure that your business has a lot of potentials to grow in this place.
To carry out the business setup in Fujairah Free Zone you must select among the types of business entities available. Unlike the Mainland, there are not so many options, you can only opt for a Free Zone Company, which should have a minimum of 2 partners, or a Free Zone Establishment that can be incorporated with just one owner.
The third choice of legal structure for your business is the Branch of a UAE Company or Foreign Company. Many foreign and local businesses that want to enter a new market in the UAE see the Fujairah Free Zones as a promising place to carry out their operations.
It is worth noting that each Free Zone has its own benefits and a type of business may find in one Free Zone more features to run their operations than in another one. So, it is important to count on the help of expert consultants like Connect Middle East if you do not know which Free Zone may be suitable for your type of company.
In this regard, these are the Free Zones available in Fujairah:
The International Free Zone Authority, most commonly known as IFZA, is a location focused on the B2B market. It has an excellent infrastructure and a simple incorporation process. You can select among the various business activities in IFZA and carry out the setup procedure with our assistance.
One of the most notorious features of IFZA is that it is on its way to becoming an environmentally conscious Free Zone. The IFZA Authority wants to achieve this by implementing eco-friendly initiatives, such as promoting the use of wind energy and solar energy and using suppliers that operate responsibly concerning their carbon footprint.
Thus, if you are an investor that wants to engage in these types of activities, you can find IFZA a perfect place to flourish.
Fujairah Creative City
This Free Zone was created in 2007 with the aim to attract companies that work in the creative industry. Thus, it attracts thousands of entrepreneurs from around the world that want to take advantage of its flexibility and quick incorporation procedures.
Therefore, this place is perfect for businesses in the media, education, design, technology, music and entertainment, and design industries. It is a great and cost-effective option for entrepreneurs and start-ups, as well as for large corporations.
Fujairah Free Zone Authority
This Free Zone has a strategic location near the port and airport so it offers additional benefits to investors that set up shop there. The main one is the connectivity to international markets as well as low-cost business licenses. Therefore, it is the perfect place for businesses in logistics, cargo, freight forwarding, and trading.
Nevertheless, it also receives investors from almost any kind of business, and from a variety of fields, so do not feel limited by this. Here in Connect Middle East, we can offer guidance on which jurisdiction in Fujairah is the most appropriate for your company.
Benefits of setting up your business in Fujairah
Deciding to start the business setup in Fujairah provides many benefits to investors and entrepreneurs. Since the UAE Government encourages foreign investment, it offers many advantages to business owners that want to carry out their operations from there.
Some of the best benefits of business setup in Fujairah are the following:
- Straightforward business setup process
- Investor-friendly policies and regulations
- Possibility to carry out transactions in multiple currencies
- Access to a strategic location in the UAE
- State-of-the-art infrastructure and facilities
- Possibility to connect with other investors from neighboring GCC countries
- Cost-effective company formation process and low-cost operations
- Authorization to recruit manpower
- Possibility to obtain visas for your foreign employees
- Access to international markets by sea, air, and land
- No hidden costs for company formation
- It welcomes almost any kind of business and you can choose among a variety of business activities
Companies established in Fujairah can run their operations from one of the many business centers and offices in the place. Thus, if you want to carry out the company formation in Fujairah, we can assist you to obtain the results you expect. Our experts will analyze the requirements of your business and will recommend the perfect physical space to run your company.
Process to start your company in Fujairah
To start the business setup in Fujairah you can choose between the Mainland and any of the three Free Zones. Each one of them has its own set of advantages so it is best to have advice on which one will suit your business best.
Whether you are considering the Mainland or the Free Zones, it is important to have an overview of the process since it is quite similar in all of these areas.
Once you have chosen your preferred jurisdiction, you must follow the simple process of company formation in Fujairah:
Select the business activity
When you plan to start your business in the UAE, you must have developed a plan beforehand. It means that you must have already defined your business model as well as your business plan. One of the benefits of choosing Fujairah is that it welcomes almost every kind of business. Thus, you will not face difficulties in this matter.
Nevertheless, you must choose among the business activities available, and this can be quite challenging. Particularly for foreign investors that do not have much knowledge about this aspect. Thus, it is best to have experts in company formation in Fujairah and business consultancy like Connect Middle East.
Decide your trade name
Once you have selected your business activity, the next step is to choose the trade name. It must be unique and suitable to the nature of your business. Also, you have to follow the guidelines established by the UAE Authority to select a trade name.
Apply for the business license
The business license is a crucial document for your company. You must select the one that suits your chosen business activity. In Fujairah, there are several types of business licenses. You just have to submit your application and the Authority will issue your license in no time.
As it is with the business activity, you also have to know which license is perfect for your company. If you need help you can always receive Business Licensing Service where our consultants will analyze your company and help obtain this important document.
Choose an office space
In Fujairah, some businesses may require to have an office space, while others do not necessarily need it. Thus, you must know needing to rent an office space is a requirement for you to start your operations.
Businesses that are involved in manufacturing and trading activities need to have an office and sometimes a warehouse to conduct their tasks. But, consultancy and professional services may not necessarily need to have a physical office.
Thus, it is important to consider which option can be the perfect one for your company. If you are a start-up or an entrepreneur, a smart office would be perfect for you. On the other hand, if you want to expand your growth in Fujairah, you can opt for rented office spaces.
Obtain the pre-approvals
The next step in your business setup in Fujairah is submitting your legal documents. First, you must collect the required documentation and make sure everything is in order before you submit it. The first thing you want to avoid is having to do the process all over again because there is an error in your documents or because you need additional approval.
Some businesses may require external approvals, depending on their chosen activity. In this case, it is best to have a partner to advise you on how to proceed.
Apply for visas
Once you have obtained your approvals and your business license, you have to continue with the process to operate legally in Fujairah. If you are considering hiring employees, you must apply for your visas.
When it comes to obtaining visas, it can be difficult for business owners to carry out this process. If you are not familiar with immigration procedures in the UAE, you can contact us to receive our Visa Services and relieve this burden.
Required documents for company formation in Fujairah
As part of the business setup in Fujairah, you must gather the necessary documentation and submit it to the respective authority. Once you have collected everything you need, you must fill out the application and submit it along with the documentation:
- Memorandum of Association (MOA)
- Article of Association (AOA)
- Shareholders’ passport copies
- Family book and passport copy of sponsor (if necessary)
- Emirates ID for UAE residents
- Capital deposit certificate issued by the bank
- Trade name certificate approval
It is worth noting that the documents for the business setup in Fujairah must be notarized and attested. And, those documents that are in a foreign language must be translated into Arabic by an official translator.
Types of business licenses available for business setup in Fujairah
Fujairah attracts business owners and entrepreneurs from across several industries given its world-class facilities and efficient solutions available to start the company formation process.
Investors that are considering the business setup in Fujairah must determine which business activity is more suitable to the nature of their company.
Some of the activities allowed in Fujairah are the following:
- Media services
- Alcohol trading
- IT Services
- Entertainment industry and music
The Trading License, also known as Commercial License, allows the company to trade specified products as per the regulations established by the Authority. Some of the activities that can be carried out under this license are import, export, buying, and selling goods, among others.
It is one of the most common licenses in the region since many organizations need it to carry out their operations. Some of them can be retail companies, transportation services, healthcare facilities, and more.
General Trading License
The General Trading License covers a wider range of products and goods than the Commercial License. For this reason, it can be costlier to obtain it. It is more suitable for investors that want to trade all kinds of products. In addition, it offers special permission for investors to distribute goods locally from relevant Government departments.
The Manufacturing License is issued for companies that want to set up a manufacturing plant in Fujairah. To obtain it, the business owner must obtain the approval for the project and insure human resources and machinery.
Companies that obtain this license can receive support for several aspects such as water, electricity, and more. This type of license is suitable for businesses that need factories to perform their activities.
The Industrial License, as its name implies, allows the business to engage in industrial-related activities. Thus, they can import raw materials, manufacture products, and distribute the finished product according to the regulations established.
The Service License is another of the most popular licenses in Fujairah. It is suitable for investors and entrepreneurs that want to open a business firm to offer professional services. Thus, companies that tend to apply for this type of license are accounting firms, individual practitioners, law firms, and more.
In Fujairah, businesses can obtain a warehousing license to rent a warehouse facility and use it according to its purposes. They can lease the warehouse and use it for several activities such as packaging, storage, and distribution of goods. The company that holds this type of license can use the warehouse as its operation center to carry out the tasks it needs.
Small and large corporations from around the world see the UAE as the perfect place to make business. Thus, if you want to get the best ally to incorporate your company in Fujairah, you can contact us to learn more about our services.
Cost of business setup in Fujairah
To carry out the business setup in Fujairah you must consider the expenses you have to make. You must pay the business license fee, as well as the visa fees. These prices will vary depending on the chosen jurisdiction, business activity, validity of the visa, and many other factors.
However, it is useful to know a range of costs so you can have an idea of how much will you spend:
- Free Zone License cost: the fees for obtaining a business license in one of the Free Zones in Fujairah start from AED 21,500. Keep in mind that depending on the business activity you may have to pay a higher fee.
- Free Zone Visa Cost: to obtain a visa in a Free Zone in Fujairah you must pay AED 3,460.
- Office Rent: the rent varies significantly depending on the type of office. For example, for a flexi office, you may pay AED 18,000 while for a large office you may pay AED 30,000. If you want to save money opt for work stations that are co-working spaces.
To sum up, a business setup in Fujairah is one of the best choices an investor can make. You can start taking your business to a whole new level by partnering with Connect Middle East. If you need our corporate sponsorship service we are readily available to assist you.
Frequently asked questions about business setup in Fujairah
Although you may have all the information about the company formation in Fujairah, you may still have some doubts about some issues.
Can I have 100% ownership of my business?
Depending on the jurisdiction you have chosen for your business, you may or may not have 100% ownership of your company. If you are going to form a Mainland Company, you can only own 49% of the shares of your corporation, while the remaining 51% will be held by the local sponsor.
But, if you decide to open a professional firm on the Mainland, you can have 100% ownership. However, you must need a local service agent.
And, in the case of a Free Zone Company in Fujairah, you can have 100% ownership of your business.
Where do I have to submit the documentation to obtain the business license in Fujairah?
To submit the documentation and carry out the legal formalities to obtain your business license, you should go to the Fujairah Municipality. This entity is in charge of issuing the business license for investors interested in establishing their presence in Fujairah.
What are the Free Zones available in Fujairah?
If you decide to establish a Free Zone Company, you must know which one can be the perfect one for your business. In Fujairah, there are three Free Zones, which are IFZA, Fujairah Free Zone, and Fujairah Creative City Free Zone. Each one of them has a strategic location and its own set of benefits that offer possibilities to grow in the UAE.
For businesses that want to engage in logistics and commercial activities, the Fujairah Free Zone can be the most suitable one. While businesses in the media and entertainment industries should opt for incorporating a company in the Fujairah Creative City Free Zone.
Which business activities are the most popular in Fujairah?
Fujairah is an Emirate in the UAE known for welcoming almost any kind of business. However, there are some that are most popular. In the same way, some jurisdictions are most suitable for some activities. For example, media-related corporations may find the Fujairah Creative City to be more adequate to conduct their activities since they find here more support for their businesses.
On the other hand, commercial businesses may prefer to opt for a Mainland Company if they want to trade internationally.
But, aside from this, some of the business activities most popular in Fujairah are the following:
- Entertainment and Music
- Education and Training
- Telecommunication and IT
What is the process to start a company in Fujairah?
One of the advantages of incorporating a company in Fujairah, whether in the Mainland or a Free Zone is that it is a straightforward procedure. First, you need to obtain determine the business activity and obtain the trade name approval. Then, you have to obtain pre-approval from the respective entity. You have to get your documents notarized and collect them to submit them along with the application form to obtain your business license. After you obtain the initial approval you can get your license and start applying for the visas.
How can I set up a business in IFZA?
IFZA is one of the Free Zones in Fujairah that combines modern technology with traditional business values, thus it is one of the most developed in the country. Local firms and international companies want to set up their operations in IFZA because it has a privileged location.
To incorporate a company in IFZA you first have to select the type of legal structure. In IFZA, you can establish a Free Zone Establishment, a Free Zone Company, or a Branch Company.
After selecting the business entity, you have to gather the documentation required for the type of legal form. Submit the application to obtain the approval from the respective Authority and wait for the processing time, which usually does not last more than a week. After that, you can apply for the business license and once you receive it you can start operating legally in IFZA.
Who can establish a company in Fujairah Creative City?
Fujairah has three Free Zones and each one of them has its benefits and features aimed at a specific type of investor. In the case of the Creative City Free Zone, as its name implies, it is aimed at the creative side.
Thus, entrepreneurs and investors that want to engage in activities such as broadcasting, marketing, publishing, media, film-making, and any other media-related activity can find great opportunities in this place.
Nevertheless, this does not mean that other types of businesses are welcomed. It is a place that requires companies from many other sectors such as trading, logistics, consultancy, and management, just to name a few. So, if you are planning to set up a company in Fujairah Creative City you must know if your preferred business activity is admitted.
To relieve this burden, you can contact us here at Connect Middle East to receive guidance on which Free Zone may be the best one for you.
Can I do business in Dubai with a Fujairah Free Zone Company?
According to the UAE regulations, companies registered under a Free Zone are not allowed to do business in Dubai or within the UAE. This is because these types of companies are aimed to target international markets and encourage foreign investment. Thus, they are completely restricted from doing business anywhere in the entire UAE territory.
If you want to set up a company in Fujairah, but you want to conduct business in Dubai because this is one of the most prominent marketplaces in the UAE, you better establish a Fujairah Mainland Company.