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UAQ Free Trade Zone Company Formation

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Umm Al Quwain Free Trade Zone Company Formation

Unlock creative industries and beyond with cost-effective licenses, complete foreign ownership and lightning-fast setup in Sharjah Publishing City.
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What is UAQ Free Trade Zone Company Formation?

The Umm Al Quwain Free Trade Zone (UAQ FTZ) is a government backed special economic zone strategically located between Ras Al Khaimah and Ajman in the northern UAE. Established in 1987 and restructured in 2014, it offers investors a stable, affordable, and efficient environment for company setup. With proximity to major seaports and airports, UAQ FTZ provides businesses seamless connectivity to regional and global markets.
The free zone accommodates ventures of all scales start-ups, SMEs, and global enterprises through flexible office solutions, warehouses, and industrial land. With its investor-friendly climate and cost advantages, UAQ FTZ is one of the UAE’s most accessible gateways to the Middle East, Africa, Europe, and Asia.

Benefits of UAQ Free Trade Zone Company Formation

Cost-Effective Setup & Minimal Overheads

Setting up in UAQ FTZ requires no paid-up share capital and offers packages starting from AED 8,000. Flexible options such as virtual offices and flex-desks keep operational expenses low, while competitive licensing and renewal fees ensure businesses maintain financial efficiency.

100% Foreign Ownership & Full Profit Repatriation

Investors retain complete ownership of their companies with unrestricted capital and profit repatriation. No local sponsor is required, and businesses enjoy zero corporate and income tax, enabling entrepreneurs to maximise returns without losing equity or control.

Wide Range of Activities & Dual Licensing

The zone supports more than 1,500 commercial, industrial, service, and consultancy activities. Businesses can combine multiple activities under one license, or even obtain a dual license for expansion into another sector at a low cost, offering maximum flexibility.

Strategic Location with Global Connectivity

Situated near the northern coast, UAQ FTZ offers quick access to seaports, airports, and highways, making it an ideal hub for importers, exporters, and manufacturers. Its position connects companies to global trade routes spanning the Middle East, Africa, and Asia.

Quick Setup & Remote Registration

Company formation is fast, often completed within 3–5 working days. Entrepreneurs can register remotely without being physically present, only needing to visit for visa stamping or bank account opening, making it one of the most convenient free zones in the UAE.

Investor-Friendly Tax & Regulatory Environment

Businesses enjoy tax exemptions on import/export duties and complete freedom to repatriate funds. No annual audits are required, and there are no currency restrictions, making UAQ FTZ particularly attractive for international entrepreneurs.

Permitted Business Activities in UAQ FTZ

Trading & General Trading

Licenses cover import, export, storage, and re-export of goods. A general trading license permits a broad range of products, allowing investors to operate as multi-product distributors under a single entity.

Consultancy & Professional Services

Service licenses are issued for activities such as IT, management consultancy, HR, engineering, and marketing. These licenses build credibility and allow professionals to legally operate and invoice clients in the UAE and abroad.

Logistics & Warehousing

UAQ’s seaport access and highway connections make it ideal for freight forwarders, courier services, and supply chain operators. Flexible warehousing and storage options enhance logistical efficiency.

Manufacturing & Industrial Activities

Industrial licenses permit manufacturing, processing, packaging, and assembly. The free zone provides cost-effective industrial land and warehouses, suitable for light to medium industries.

E-Commerce & Digital Ventures

Online businesses, marketplaces, and digital trading platforms can operate under an e-commerce license, benefiting from low-cost packages and minimal requirements.

Freelancing & Creative Industries

UAQ FTZ issues freelance permits for individuals in sectors such as media, design, and technology, providing affordable entry with flexible visa options.

Assembly & Repacking

Businesses engaged in assembling products or repackaging goods benefit from UAQ’s customs exemptions and strong logistics network.

Legal Entities in UAQ FTZ

Free Zone Establishment (FZE)

An FZE is a limited liability entity formed with a single shareholder, who may be an individual or a corporate body. It allows complete foreign ownership, limited liability protection, and unrestricted profit repatriation. This model is best suited for solo entrepreneurs, independent investors, or startups who want full control without the complexities of multiple partners.

Free Zone Company (FZC)

An FZC is structured for 2 to 50 shareholders, making it ideal for partnerships, joint ventures, or family-owned businesses. This entity provides the same tax benefits, 100% ownership, and repatriation rights as an FZE, but with the added advantage of collective capital and decision-making. It is popular among investors who seek shared ownership while retaining free zone privileges.

Freelance Permit

The freelance permit allows professionals to operate under their personal legal name without the need to incorporate a separate company. It is cost-effective and designed for consultants, creatives, digital specialists, and independent contractors who want to legally invoice clients and sponsor their own residence visa.

Branch of a Local or Foreign Company

Existing UAE companies or foreign corporations can establish a branch in UAQ FTZ to expand operations without creating a new legal entity. The branch carries the same legal identity as its parent company and conducts identical business activities. It combines tax-free operations, foreign ownership, and simplified registration with the credibility of an already established parent brand.

Types of Licences in UAQ FTZ

Commercial License

A commercial license permits companies to import, export, distribute, and store goods. It allows up to 10 related products or 3 unrelated product lines under a single license, making it versatile for traders while also giving them access to work with UAE distributors to penetrate the mainland market.

General Trading Licence

 Broader than the commercial licence, the general trading licence lets companies deal in a wide variety of goods and commodities without strict product-line limits. It is designed for wholesalers, import-export houses, and businesses aiming to diversify across multiple categories.

Service / Consultancy Licence

This licence is issued to professionals and firms offering intangible services such as management consultancy, IT, HR, marketing, education, travel, and logistics. It enhances credibility by legitimising consultancy practices and ensures compliance with UAE service regulations.

Industrial License

The industrial license authorizes companies to import raw materials, manufacture, assemble, process, or package products for re-export. UAQ FTZ supports industries with affordable warehouses and land plots for both light and medium-scale operations with customs exemptions, proximity to seaports, and efficient supply chain support.

E-Commerce License

Designed for businesses operating online, the e-commerce license covers digital trading platforms, online retail stores, and cross-border marketplaces. It enables entrepreneurs to sell goods or services without needing a physical shop, making it a cost-effective choice for startups and online sellers.

Freelance Permit

The freelance permit empowers individuals in creative, media, and professional fields to work legally under their personal name. It provides a low-cost entry route, the ability to invoice clients directly, and eligibility for a residence visa.

Dual License Option

UAQ FTZ allows companies to add a secondary license category at a low fee, without forming a separate entity. This option is ideal for businesses that want to diversify their services and capture new revenue streams, all while operating under a single corporate umbrella.

Step-by-Step Setup Process

1. Step 1: Define Activity & Legal Structure  

Choose your business activity and decide whether you need an FZE, FZC, freelance permit, or branch. Each has specific rules on liability, ownership, and visas.

2. Step 2: Select Workspace  

Pick between flex-desks, offices, warehouses, or industrial land based on your operations. Workspace size influences visa quotas and compliance requirements.

3. Step 3: Reserve Trade Name & Prepare Documents

Submit preferred company names and gather required documents such as passport copies, proof of residence, photos, and incorporation details.

4. Step 4: Application & License Issuance  

Submit your application to the UAQ FTZ Authority. Licenses are usually issued within 3–5 working days, depending on activity approvals.

5. Step 5: Establishment Card & Visas    

Apply for an establishment card, then process shareholder and employee visas. Visas are valid for two years and allow dependents to be sponsored.

6. Step 6: Open Bank Account   

With your licence and Emirates ID, open a corporate account in a UAE bank. A personal visit is required to comply with banking regulations.

7. Step 7: Renewals & Compliance   

Renew your license annually, update lease agreements, and ensure compliance with ESR, UBO, and AML laws.

Documents Required

How DSA Helps

Dubai Setup Advisors (DSA) simplifies every step of your UAE business formation journey from initial planning to long-term operational support. We’re not just consultants; we’re your on-ground execution partners with deep expertise in UAE legal, regulatory, and commercial frameworks.

Business Planning & Jurisdiction Comparison
Trade Name Reservation & Licensing Approvals
Legal Documentation, Drafting & Translation
Workspace & Tenancy Solutions
Bank Account Opening & Compliance Setup
Visa & Immigration Processing
PRO & Legal Documentation Services
Post-Incorporation Support & Growth Enablement

Why Choose Us?

At Dubai Setup Advisors (DSA), we go beyond basic company registration. We provide strategic guidance, legal clarity, and operational support tailored for global entrepreneurs and investors entering the UAE market. Here’s why clients from over 30 countries trust us to build their presence in the Emirates.

Extensive Experience

End-to-End Service

Transparent Pricing

Global Perspective

Personalized Approach

Comprehensive Network

Frequently Asked Questions (FAQ's)

Most of the registration can be completed remotely, with only visa stamping and bank account opening requiring your visit. This makes UAQ FTZ highly convenient for foreign investors.

Licenses are typically issued within 3–5 working days, with visas and banking completed in 1–3 weeks. Even with external approvals, setup remains faster than most free zones.

No sponsor is required investors enjoy 100% ownership and retain complete control over their company. This ensures flexibility and independence in decision making.

Yes, you can combine up to 10 related or 3 unrelated activities on a license, and even add a dual license. This allows businesses to diversify without forming separate entities.

UAQ FTZ issues two-year residence visas for shareholders, employees, and dependents. Visa quotas are linked to your office size or chosen license package.

Most nationalities are accepted, though some may require additional approvals. Pre-clearance ensures investors face no surprises during the process.

Flex-desks and virtual offices meet legal requirements, while larger offices or warehouses are available if you need more visas or bigger operations.

Free zone companies can trade with the mainland through authorized agents or distributors. Direct trade requires a mainland branch or dual license.

UAQ FTZ does not mandate paid-up capital, keeping entry costs low. Capital amounts can be declared in company documents without bank deposits.

Annual audits are not required, but companies must maintain accounting records to comply with federal rules such as ESR, UBO, and AML laws.

For Individual Shareholders