A Quick View on Umm Al Quwain Free Trade Zone (UAQFTZ):
Umm Al Quwain Free Trade Zone was founded in 1987, but it came to the limelight only after 2014 when it had undergone major restructuring and started marketing its services. This free zone is basically an investor friendly favorable to SMEs and micro businesses. Mr. Johnson M George is the general manager of UAQFTZ.
Q) Why investors have to consider Umm Al Quwain Free Trade Zone (UAQFTZ)?
| Umm Al Quwain Free Trade Zone offers: – |
| Investor-friendly environment. |
| Affordable leasing options for office space and warehousing. |
| One of the most attractive places with effective investment |
| Lower costs of living and labor |
Q) What are the various business activities Umm Al Quwain Free Trade Zone (UAQFTZ) welcomes?
| What are the business activities Umm Al Quwain Free Trade Zone welcomes? |
| Media and Marketing Services |
| Assembly |
| Courier Services |
| E-commerce |
| Import/Export |
| Insurance Services |
| Logistics |
| Manufacturing |
| Packaging |
| Technology |
| Transport |
| Travel |
Q) What are the types of licenses offered to set up the business in Umm Al Quwain Free Trade Zone (UAQFTZ)?
| Types of licenses offered to set up the business in Umm Al Quwain Free Trade Zone |
| Commercial License |
| General trading License |
| Consultancy License |
| Freelance permit |
| Industrial License |
| Service License |
Q) What are the types of entities that can be incorporated in Umm Al Quwain Free Trade Zone?
| Entity Type |
Explanation |
| Free Zone Establishment (FZE) |
Suitable for single shareholder |
| Free Zone Company (FZC) |
Suitable two and up to 50 shareholders |
| Branch |
A branch of an existing or foreign company |
Note: Business setup in Umm Al Quwain Free Trade Zone does not require any local sponsor.
Q) What is the company set up process in a brief in Umm Al Quwain Free Trade Zone?
| Company Set up process |
Required documents |
| Identifying the legal form of company |
Application form |
| Choosing the license |
Passport copy of shareholders, Directors and Manager |
| Choosing the facility |
Address proof of the shareholders and Managers |
| Submission of documents |
Signed filed incorporation documents |
| Making the payment |
passport size photographs |
| Receiving trade license and commencing the business |
|
Q) What is to be done for renewal of license in Umm Al Quwain Free Trade Zone?
| For renewing the license |
| Cost of Renewal is less expensive than that of cost of incorporation. |
| Payment for renewal along with the signed lease agreement for the next year to be submitted. |
Q) What is the process to liquidate the entity in Umm Al Quwain Free Trade Zone?
| Process to Liquidate |
| Cancellation of the visas |
| Termination of lease agreement |
| Closure of the bank account |
| Clearance from Customs in case the entity had a trading activity in the license |
Q) What are the competitive advantages to setup a business in Umm Al Quwain Free Trade Zone?
| Competitive advantages |
| Simple setting up process |
| No personal income tax and corporate tax |
| 100% on company ownership. |
| 100% profits and capital repatriation. |
| No currency restrictions |
| 100% import and export tax exemption within the Free Zone |
| High end infrastructure |
| Special concessions at UAQ’s airport |
| Modernized and investor friendly rules and regulations |
Corporate tax applicability to the companies in Umm Al Quwain Free Trade Zone:
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero
Sep 19, 2021 
Business
