Fujairah is one of the seven emirates of the UAE and is home to multiple free zones, including Fujairah Free Zone and Fujairah Creative City Free Zone. Each zone offers unique benefits to investors. It is more than just a place; it combines strategic location, friendly policies, and advanced infrastructure, making it an attractive destination for businesses.
Holding a valid Fujairah trade license is mandatory to operate legally and conduct activities in Fujairah. You can choose from different types of trade licenses, depending on your preferences and business activities.
Types of Trade License in Fujairah
Common types of trading licenses in Fujairah are
- Industrial License
It is crucial to have an industrial license if you want to establish an industrial unit in the free zone. Along with that, you have to follow the rules and regulations to avoid any issues.
- Service License
A service license allows you to run a business using your skills, such as a Consultancy, salon, healthcare services, carpentry, advisory services, makeup services, IT services, or graphic design.
- Warehouse License
Warehouses are used to store goods in a large quantity. Having a warehouse license allows you to use a warehouse legally.
- Trading License
A Trading License is required for importing and exporting goods in the UAE or internationally. It not only helps you avoid penalties and fines but also enhances the credibility of your business.
- General Trading License
A wider type of trading license that allows you to export and import diverse types of goods. License holder is not restricted to a specific type of goods.
Moreover, you can export and import goods in local markets and outside the UAE. This is more suitable for companies that operate on a large scale.
Types of Business Entities in Fujairah
You can form the following types of business entities in this free zone.
- Free Zone Establishment (FZE)
This type of entity allows one business owner only. It can be a company or an individual.
Individual: Regular people who are part of the company
Company: Other companies can be part of your business by investing in your business.
- Free Zone Company (FZC)
FZC can have 2 to 10 shareholders known as owners. These owners can be individuals, companies, or a mix of both. Each owner or shareholder owns a part of the company, as they have the same responsibilities and profit.
- Branch of Foreign Company
If you own a company outside the UAE, you can open a branch in Fujairah. The limitation is that your business activities should be the same or similar.
- UAE Branch
If you register a company in the UAE, your branch can be launched in this free zone. The parent company must have a license or permit to open a branch company.
Process of Obtaining Trade License in Fujairah City
Here is a step-by-step guide to help you obtain a trading license without hassle.
- Choose the Type of License
The first and foremost step is to decide what product you are going to offer. This step determines what type of license you require. It can be an industrial, professional, or general trading license.
- Decide Trading Name
After opting for the product, you apply for a trade name to the concerned department in Fujairah City. It is recommended that the trading name be short, simple, and unique, as it will be easy to remember.
You can get an idea of a trading name from the official website of the Fujairah Department of Economic Development (DED). However, you are not allowed to choose a name already taken by other businesses.
- Prepare Documents
To enter your company in the commercial registry, complete the paperwork and submit all the required documents to DED. The Memorandum of Association and Local Service Agent agreement is also included in the documentation. In legal compliance, a reliable local sponsor is selected as a partner in business activities.
It also includes submitting your documents, such as your identity card and passport, and information related to your business, such as what you are going to trade and what location in Fujairah city you selected.
- Submit Application
The next step is to submit the application and documents to the Fujairah Free Zone Authority for approval. This can be done online or in person.
- Pay License Fee
The license fee is not fixed; it varies with the license type and the business activities. The greater the number of activities, the higher the fee. Make sure you check the fee structure before applying for the license.
- Initial Approval
Wait for a few days to get initial approval from the Fujairah Free Zone. It is provided when the company meets all the requirements without objection.
- Sign the Lease Agreement
If you need space to perform business activities, you need to sign the lease agreement. If you are planning to get a warehouse license, a physical location in the free zone is necessary. This will allow you to use this space for your business operations without any fear.
- Get the Trading License
After completing all the steps and receiving approval from the relevant authorities, you will receive your trading license. The Fujairah trade license check online option is also available on the official website to check the status of the application.
After that, you can legally start a Fujairah business in the Fujairah Zone. Without a license, it is impossible to operate in the UAE.
- Additional Formalities
Depending on the type of license and business activities, you might have to complete additional formalities, including approval from relevant authorities and government departments, to avoid penalties.
6 Benefits of Starting a Business in Fujairah
Fujairah offers several benefits to investors, and the main benefits are
1. Tax Advantage
Fujairah is 100% tax-free, which is one of the main advantages of starting a business. If you choose Fujairah City, you are not bound to pay value-added tax, withhold tax, or corporate tax. This kind of tax system is the dream of every businessman in the world, and Fujairah can fulfill it.
2. Affordable License
Another good point is that the Fujairah trading license is easy to use in the wallet. Entrepreneurs can easily afford it and get benefits that are impossible to find anywhere else.
3. Complete Ownership
The benefit that attracts the greatest number of entrepreneurs and investors is complete ownership. Although this benefit is provided in other free zones, Fujairah offers other perks, such as high quality, excellent service, and customer support.
4. Stable Environment
Profit is important for business, but peace of mind is equally essential. Fujairah provides a stable and calm environment for its residents to run businesses.
5. High Demand
As we know, Fujairah is an ideal location due to its strategic location and growing economy. These benefits attract many entrepreneurs to business activities, resulting in high demand for trading activities. Accessing international markets and favorable policies can help you expand and grow your business.
6. Customs Duty Exemption
Customs duties are paid when you import and export goods outside the UAE. However, holding a trade license in Fujairah allows you to import and export goods without paying extra taxes.
Fujairah Trade License Fees
The Fujairah trade license fees are not fixed and vary as it depends on several factors, including
- License type
- Business structure
- Business activities
- Office space
- Number of visas
- Immigration
Based on these factors, two options are available
- Zero Visa License with Virtual Office Cost
This is a suitable option for businesses that do not require office space or an employee visa. Business activities are performed through a virtual office, and the cost is AED 21,500. The best part is that it includes AED 5000 refundable deposits. This means that if you cancel your license for valid reasons, you will get back 5,000 AED.
- Standard License Cost
Generally, the standard cost is AED 14,999 and you need to pay an annual fee that is 5000 AED to keep your license valid. The overall cost also increases, if your business requires additional approvals, certificates, and permits.
Conclusion
At the end of this article, we hope it has given you a detailed overview of the Fujairah Trade License, its process, the benefits it offers, and its fee structure. Whether you own a small startup or an established company, Fujairah City is a great place for investors. It offers incentives and opportunities to help your business grow. Get your trade license and thrive in the Fujairah business market.
Obtaining a trading license can be tricky; to avoid the hassle, contact Al Riyady. Our team will guide and help you establish a Business in Freezone.
