Why Set up a Company in UAQ?
Umm Al Quwain is one of the seven emirates of the United Arab Emirates (UAE). The economy of the Emirate is diverse ranging from agriculture to manufacturing and other service-based companies. It is strategically located very close to Dubai and Sharjah, which makes it popular destination for business looking to set up their operations in the UAE.
Whether you are looking to start an Umm Al Quwain business setup or expand your existing operations, the Emirate offers a range of opportunities across different sectors, including tourism, construction, manufacturing, and retail. In this context, understanding the process and requirements for UAQ business setup is essential for any entrepreneur or investor exploring the business opportunities in the emirate.
Umm Al Quwain (UAQ) offers many reasons for companies to set up operations in the Emirate such as its strategic location, which provides key access to markets access the UAE. Additionally, the UAQ government and free zone authority has streamlined the business setup process, making it simple, quick and easy to register a new business entity. The other perks include low operating costs, tax rates, investor incentives, and support services which makes it an attractive destination.
Further, the economy of the Emirate is diversified many various sectors, including agriculture, manufacturing, and services providing ready access to skilled workforce. The government of UAQ is committed to promoting economic growth with a number of initiatives undertaken to support local and foreign businesses. It has resulted in making UAQ an attractive destination for companies looking to setup their operations in the UAE.
Types of UAQ Company Formation
Gryffin Capitalist is familiar with the UAQ company formation laws and regulations in UAQ and can assist you in establishing your business and obtaining the necessary licenses. You can choose between different types of company formation available in Umm Al Quwain, including:
Free Zone Company:
A company formed in a free zone area, which allows 100% foreign ownership, exemption from corporate and personal income tax, and simplified customs procedures.
A company formed outside the free zone, which requires a local UAE partner or sponsor, but allows access to a larger market and a more comprehensive range of business activities.
A company registered as an offshore entity, used for international business and investment activities, and offers tax benefits and asset protection.
Different Business Entities in Umm Al Quwain
Umm Al Quwain (UAQ) allows various corporate entities for business setup. Here are some of the most common corporate entities allowed in UAQ:
Limited Liability Company (LLC):
This is UAQ's most popular type of corporate entity. An LLC requires at least two shareholders and allows the business to operate as a separate legal entity, limiting the liability of shareholders to their investment.
The business is owned and operated by a single individual. It is a more straightforward form of business and does not require formal registration.
A branch office is an extension of a parent company and allows the parent company to operate in UAQ under its name.
Free Zone Company:
UAQ has a free zone area where businesses can operate with 100% foreign ownership and are exempt from taxes and duties. Free zone companies can be LLCs, sole proprietorships, or branches of foreign companies.
This type of entity is owned by two or more individuals who share the profits and losses of the business. The partners may have unlimited liability for the debts of the business.
The specific requirements and procedures for setting up each entity type may vary depending on the business's nature and the chosen legal structure.
Umm Al Quwain Business License
Please find below some of the most common licenses issued in the UAQ:
This license allows businesses to operate legally in UAQ. It is issued by the Department of Economic Development (DED) and is mandatory for all commercial activities.
This license is for individuals who want to offer professional services in UAQ, such as consultancy or freelancing. The DED also issues it.
This license is for businesses involved in manufacturing or industrial activities. The UAQ Chamber of Commerce and Industry issues it.
General Trading License
This license allows businesses to trade goods within UAQ. The DED issues it.
This license is issued by the Department of Tourism and Antiquities and allows businesses to operate in the tourism industry, such as hotels or travel agencies.
The specific requirements and procedures for obtaining each license may vary depending on the nature of the business and the department issuing the license.
Procedure to Set up a Company in UAQ
If you are looking to register a company in Umm Al Quwain, here are the quick steps to be followed.
The first step in company formation in Umm Al Quwain is determining the business activity your company wants to undertake. Researching the market and ensuring that your chosen business activity is permissible in UAQ is essential.
The next step is to choose the legal structure of your company. UAQ's most common legal structures are Limited Liability Companies (LLCs), Sole Proprietorships, and Branch Offices. Each legal structure has advantages and disadvantages, so choosing the one that best suits your business needs is very important.
The company name is a crucial element in setting up a business. Choose a unique and meaningful name that complies with UAQ's naming conventions and requirements. The name should not be already taken or similar to existing companies' names.
To obtain initial approval, submit an application to the Department of Economic Development (DED) with the necessary documents and obtain preliminary approval. The application must include business activity details, legal structure, and company name.
Lease or purchase a business premise that meets the requirements of your business activity and legal structure. The location of your business premises will also impact the issuance of your trade license, and the Umm Al Quwain trade license cost also depends upon where the office is located. Hence, it is essential to choose an appropriate location.
Prepare the MOA, which outlines the details of the company, its objectives, and the roles and responsibilities of shareholders. The MOA must be notarized at the Notary Public in UAQ.
Apply for a trade license from the DED and obtain approval to operate your business in UAQ. The trade license must match your business activity, legal structure, and company name.
Register your company with the Federal Tax Authority if your business requires Value Added Tax (VAT) registration. As per the rule, VAT registration is mandatory for businesses with an annual turnover exceeding AED 375,000.
Register for any other relevant permits and licenses required for your business activity, such as health and safety permits or environmental permits.
Setting up a business in UAQ can be a rewarding experience for entrepreneurs seeking growth opportunities in the UAE. The above steps guide entrepreneurs looking to set up their businesses in UAQ.
Why Choose Gryffin Capitalist?
Engaging a company formation professional when forming a new business in the UAE is a good way to ensure this. A business formation specialist can assist you in opening corporate bank accounts, selecting the best financial institution for your specific requirements, and managing your licensing application.
While the procedures for establishing a business in the UAE are simple, some prior knowledge is required. Furthermore, remember that the application process is only simple if your business application is complete and error-free when submitted. We at Gryffin Capitalist can assist you with the required services regarding your company setup in the UAE. Contact us for further queries. we’d be glad to help you.
Strong belief in long-term client relationships
Competitive Market Pricing
Efficient and Transparent Process
What our clients say
Very Prompt Service
"Gryffin Capitalist has assisted us with the opening of an offshore bank account without much hassles. I have faced issues with other companies regarding the required documents and process"
Seamless company Incorporation process
"I contacted Gryffin Capitalist to incorporate my company in the British Virgin Islands. The consultants were proactive in explaining the process and getting necessary documents in a single go thereby avoiding any resubmission and saving a lot of time."
Great Service by the team
"The team at Gryffin capitalist was very helpful in my company incorporation in the UAE. After the sales, the operations team was proactive and followed up regularly to get the company registered."