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COMPANY REGISTRATION FUJAIRAH
Company registration in Fujairah is straightforward if you meet all the requirements. Fujairah is an attractive destination for business owners from all over the world, thanks to its strategic location and numerous advantages.
Situated along the Arabian Gulf, it is the only Emirate that offers direct access to other significant UAE cities, such as Dubai, Sharjah, and Abu Dhabi. This advantageous location makes it an ideal destination for companies engaged in import and export activities.
In addition, Fujairah has a well-established infrastructure, including a seaport and an airport, which makes it a hub for international trade. Its seaport is one of the busiest in the region, serving as a gateway for goods to and from major ports worldwide. Furthermore, its airport offers air cargo services and connects the Emirate to numerous cities worldwide.
Fujairah is also known for its size, occupying 1.5% of the territory, making it the fifth-largest Emirate in the UAE. This provides ample space for businesses to establish themselves and expand their operations.
Moreover, Fujairah offers several tax advantages, such as zero corporate and personal income taxes, no VAT, and no currency restrictions, making it an attractive destination for foreign investors. The Emirate also has a well-regulated legal system and a business-friendly environment, which make it easier to start and run a business.
KEY REQUIREMENTS FOR FUJAIRAH COMPANY REGISTRATION
Shareholder and Shares
For a Limited Liability Company (LLC) in Fujairah, there must be a minimum of two and a maximum of fifty shareholders, who are not personally liable for the company’s debts and obligations beyond their capital contributions.
The shares of an LLC in Fujairah can be owned by individuals or corporate entities and are divided into equal parts, which represent the shareholder’s ownership in the company. The value of each share is determined by the company’s total capital divided by the number of shares issued.
To register a company in Fujairah, there is no minimum capital requirement, as the Emirate allows 100% foreign ownership, making it an attractive destination for investors. However, the required minimum capital for the type of business activities being conducted must be met, as per the relevant regulatory bodies in the UAE.
To register a Limited Liability Company (LLC) in Fujairah, at least one director is required, who must be a UAE resident with a clean criminal record and no conflicts of interest. There are no restrictions on the nationality of directors, and foreign nationals can serve as directors as long as they meet the other requirements.
It is important to consult with a legal professional or relevant regulatory body for the most up-to-date information on company director requirements in Fujairah.
Registered Office Address
The registered office address must be a physical address located in Fujairah, and it must be a place where official documents and notices can be delivered to the company. The address can be a commercial or residential address, but it cannot be a PO Box or virtual office address.
The registered office address must be provided to the relevant authorities during the company registration process, and any changes to the address must be notified to the authorities as well.
TIMELINE OF COMPANY INCORPORATION IN FUJAIRAH
TYPES OF BUSINESS ENTITIES IN FUJAIRAH
- Partnership – Two or more partners create this entity to share profits. In general partnerships, the partners’ liability would be unlimited, while in limited liability partnerships, each partner’s liability is limited to their capital contribution.
- Public Companies – This entity requires a minimum capital of AED 10 million, with at least 10 members. Shares of this company can be traded on a stock exchange.
- Private Companies – The minimum capital required to establish this entity is AED 2,000,000, with a minimum of three members.
- Joint Venture – This is an agreement or contract between two or more people or businesses for a specific project or activity, with the partners sharing profits for a limited time.
- Branch Office – This entity can perform any activities that are within the scope of the overseas parent company.
- Representative Office – A foreign business can open a representative office in Fujairah, which can conduct market research and advertising operations.
- Fujairah Free Zone Entities – Fujairah’s free trade zones are designed to attract foreign investors, and there are specific requirements that must be met for company registration within them. These requirements may include minimum capital requirements, the number of employees, the type of business activities, and other factors. However, the advantage of establishing a company within a free trade zone is that it provides numerous benefits, including 100% foreign ownership, zero corporate and personal income tax, and exemption from customs duties.
- Limited Liability Companies – This is one of the most popular business structures used for company formation in Fujairah, with a minimum capital of AED 150,000 and the business name obtained from the local municipality.
Fujairah Free Zones
One of the oldest free zones in the UAE is Fujairah. It is situated close to Fujairah Port in the Fujairah Emirate. The free zone concentrates on commercial and maritime operations. There are numerous mining and heavy industrial businesses there.
Due to Fujairah port’s excellent location with a direct exit to the Indian Ocean, it also boasts branches of all major petroleum corporations in the area. For businesses looking to engage in trading, the Fujairah Free Zone is a paradise.
The Free Zone is also close to the Fujairah International Airport. Only this airport offers service to Oman and the East Coast of the United Arab Emirates. And a reliable highway service is also available. Businessmen have the chance to streamline numerous business procedures and shorten delivery times thanks to their strategic position.
The combination of the location, cheap manufacturing costs, and low overhead costs makes it a successful business location for Fujairah free zone company registration.
Foreigners who wish to work in Fujairah will need a valid visa to do so. For those interested in setting up a company in Fujairah, it is recommended to establish the company within one of the free trade zones, as this provides for the issuance of residence visas for foreign employees. The visa requirements will vary depending on the specific free trade zone.
STEP BY STEP TO REGISTER A BUSINESS IN FUJAIRAH
Getting Primary Approval
Get primary approval from Fujairah Municipality for the company name and business activities.
Getting Permission from the ministry
Obtain clearance from the relevant Ministry or Department if the company’s activities are unique in some way.
Draft and notarize the company’s Memorandum of Association.
Capital Contribution Certificate and Auditor’s Certificate
Obtain the capital contribution certificate from the bank for cash shares, and the Auditor’s Certificate for cash and kind shares.
Get all necessary paperwork, including the MOA, tenancy agreement, capital certificate, and others, approved and notarized, and submit them to the municipality.
PROS AND CONS OF REGISTERING A COMPANY IN FUJAIRAH
Free Trade Zones
Fujairah has two free trade zones, the Fujairah Free Zone (FFZ) and the Creative City. These zones offer a range of investment opportunities, with over 3 million square metres of industrial and commercial space. The FFZ draws a variety of industries, including manufacturing, textiles, and steel sectors.
Fujairah is an important centre for the oil industry, with its port and Fujairah Oil Industry Zone serving as commercial hubs for the transportation of oil and other cargo commodities. Commercial merchant liners dock at the port of Fujairah, and the Indian Ocean connects these.
It is not necessary to be physically present in Fujairah to form a business. Overseas investors do not require any No Objection Certificates (NOC) to establish their business.
All free trade zones in Fujairah are tax-free. The government has introduced several measures to attract foreign investment, making company formation in Fujairah an attractive option for investors
Limited market size
The market size in Fujairah is limited compared to larger cities in the UAE, which may limit the potential for growth for certain businesses.
Despite recent investments in infrastructure, some areas in Fujairah may still lack modern amenities and facilities compared to larger cities in the UAE.
As Fujairah continues to attract more businesses, competition in certain industries may increase, which could make it more challenging for new businesses to establish themselves.
WHY CHOOSE RELIN CONSULTANTS FOR BUSINESS SETUP IN FUJAIRAH?
Our team at Relin Consultants will guide you through the administrative, financial, and legal processes that you will need while starting a business in Fujairah. All the paperwork and documents will be taken care of as our team of professionals is fully aware of the UAE laws.
Reach out to us at Relin Consultants to know more about our business setup services in Fujairah.
Is it easy to set up a business in Fujairah?
The process of setting up a business in Fujairah is generally considered to be straightforward and efficient. The Fujairah Economic Development Department (FEDD) is responsible for issuing licences and permits for businesses, and they have streamlined the process to make it as easy as possible for entrepreneurs to set up their companies.
The government in Fujairah actively encourages foreign investment and provides various incentives for businesses to be established in the emirate. There are also various free zones in Fujairah that offer additional benefits such as 100% ownership, no corporate and personal income taxes, no currency restrictions and no import or export duties.
How can I check if a company is legal in Fujairah?
You can check if a company is legal in Fujairah by visiting the Fujairah Economic Development Department (FEDD) website. The FEDD maintains a public register of all companies registered in the emirate, and you can search for a specific company by name or registration number.
You can also check the registration status of a company by visiting the FEDD office in person or by contacting them over the phone. Another way is to check if the company is registered in the Fujairah Chamber of Commerce and Industry (FCCI) which is responsible for issuing commercial licences for businesses operating in the emirate.
The FCCI also maintains a public register of all registered companies, and you can search for a specific company by name or registration number on their website.
Is Fujairah tax-free for business?
Fujairah is considered to be a tax-free emirate for businesses, as there is no corporate income tax, no personal income tax, and no value-added tax (VAT) in Fujairah. However, some businesses may be subject to certain taxes or fees, such as customs duties or excise taxes on specific goods.
It’s also important to note that there are free zones in Fujairah that have their own set of laws and regulations which are different from the rest of the emirate. Businesses that are registered in these free zones may be eligible for additional benefits.
How long will it take to incorporate a company in Fujairah?
The time it takes to incorporate a company in Fujairah can vary depending on the type of company, the completeness of the application and the specific requirements of the relevant authorities. However, on average it takes around 2-6 weeks to complete the registration process once all the required documentation has been submitted.
What is the company formation cost in the Fujairah free zone?
The cost of forming a company in the Fujairah free zone can vary depending on the type of company, the number of shareholders, and the specific requirements of the free zone authority.
What are the business licences available in Fujairah?
Business licences available in Fujairah for different activities are Maritime licence, Alcohol trading, Tobacco trading, Real estate consultancy, Financial consultancy, E-commerce, and Logistics Trading License.
Is it mandatory to have a physical office in Fujairah for company incorporation?
It depends on the type of company and the specific requirements of the Fujairah Economic Development Department (FEDD) or the free zone authority where you are registering your Company. In general, for most companies, it is mandatory to have a physical office in Fujairah in order to register a company. This office space must be located within the emirate of Fujairah and it must be used as the registered office and business address of the company.
However, there are certain types of companies, such as virtual office companies, that may not be required to have a physical office space. Additionally, some free zones in Fujairah may offer virtual office services that allow companies to register without having to rent a physical office space.
What kind of companies are eligible to be part of the Fujairah Free Zone?
The Fujairah Free Zone Authority (FFZA) offers a wide range of options for companies looking to set up in the free zone. The following types of companies are eligible to register in the Fujairah Free Zone:
Free Zone Establishments (FZE): These are companies that are fully owned by one individual and are not allowed to trade outside of the free zone.
Free Zone Companies (FZC): These are companies that are fully owned by two or more individuals and are not allowed to trade outside of the free zone.
Branch office: These are companies that are existing outside of the UAE and wish to open a branch office in Fujairah Free Zone.
Representative office: These are companies that wish to open a representative office in Fujairah Free Zone to facilitate their trade activities in the UAE market.
Holding companies: These are companies that are established with the aim of holding shares in other companies.
Service companies: These are companies that provide services to other companies within the free zone.
What is the minimum capital requirement for business setup in Fujairah?
The minimum capital requirement for business setup in Fujairah varies depending on the type of company and the specific requirements of the relevant authorities.
For companies that are not located in the Fujairah Free Zone, the Fujairah Economic Development Department (FEDD) does not have a specific minimum capital requirement. However, the company must have sufficient capital to carry out its business activities.