Fujairah is the fifth largest of the seven emirates of the United Arab Emirates and is the only one with a coastline solely on the Gulf of Oman. There are two major Free Zones in Fujairah – the Fujairah Creative City and the Fujairah Free Zone. Both offer a wide variety of licence types and are highly cost effective in comparison to the Dubai-based Free Zones. This makes them an attractive option, particularly for start-ups and freelancers who do not necessarily require physical office space.
Fujairah Creative City focuses on a broad spectrum of business fields including media, events, consulting, education, communication and marketing, music and entertainment, design and technology. Fujairah Free Zone is adjacent to the Port of Fujairah and close to the Fujairah International Airport. It focuses on trading entities, service providers, logistics companies and manufacturers.
Key Features of the Fujairah Free Zones:
Fujairah Creative City (FCC) is managed by the Fujairah Culture and Media Authority. Establishing a company in the FCC has the following benefits:
- Company set-up options starting from AED 17,500 (approx. USD 4,750) per year;
- Physical presence in the UAE is not required to incorporate your new company;
- No paid up share capital or annual audit required;
- All company documentation can be issued in a matter of days;
- Allocation of seven UAE residency visas without the need for physical office space.
Fujairah Free Zone (FFZ) is managed by the Fujairah Free Zone Authority. It provides excellent logistic connectivity and offers the following licence types:
- Trading and General Trading Licence;
- Manufacturing Licence;
- Warehousing Licence;
- Consultancy/Services Licence; and
- Industrial Licence.
Establishing a company in the FFZ has the following benefits:
- Exemption of customs duties on imports of all commodities and finished products for the purpose of export and re-export outside the UAE. Clients need not pay duties on factory machinery or raw material used in production;
- All types of business are considered, subject to Fujairah Free Zone Authority approval;
- No minimum capital requirements for setting up a company in the Free Zone. AED 150,000 is the standard share capital for registering a Free Zone Establishment (FZE) or a Free Zone Company (FZC) but the minimum share capital and paid-up capital requirements vary depending on the type of licence;
- There is currently no law enforcing the recruitment of UAE nationals.
Advantages of the Fujairah Free Zones:
Fujairah Creative City: For a standard set-up, the licence will be issued within seven days, enabling the holder to apply for a company bank account. The Free Zone automatically applies for an Immigration Card, which takes between 10 to 15 working days. When this has been issued, the holder can apply for a UAE residency visa.
FCC licence holders can have a registered address within one of the FCC’s business centres based in Dubai and use the amenities for a certain amount of hours a month. This is ideal for clients who are only in the UAE for a short period of time because they do not need to travel to Fujairah.
Fujairah Free Zone: Once the application for the new company is submitted, the licence can be issued within one day. It will then take between 5 to 10 working days for the immigration card to be issued and then you can apply for residency visas. The Free Zone also offers a wide variety of packages such as warehouse space, plots of land, offices and virtual offices.
Requirements to set up a company in the Fujairah Free Zone:
To begin the process of setting up a Free Zone Company, we will require the following due diligence from all shareholders/directors of the proposed new company:
- Certified Passport Copy & UAE Visa/UAE entry stamp (if non-resident)
- 2 x Proofs of Address (dated within three months)
- Bank Reference Letter
- CV – Brief Professional Background
- Company Application Form (which we will provide)
Please note that the Free Zones may request a detailed business plan, depending on the business activity of the proposed new company. We have a variety of templates that can be utilised to assist you.
Fujairah Free Zone Company – FAQs
- What are the statutory requirements of a Free Zone Company?
Each Free Zone has its own governing authority, so requirements will vary from free zone to free zone, however the majority follow the same framework. There are two types of companies you can establish in the Free Zone – a Sole Establishment (FZE) with one shareholder and a Free Zone Company (FZCO) with two or more shareholders. Both individual and corporate shareholders are allowed.
A manager must be appointed for the company and this person will be responsible for the day-to-day running of the company and is generally responsible for the operation of the bank account and the signing of any contracts on behalf of the company. The manger will also be required to sign off on any changes that are made to the company structure. The manager must be a UAE resident or have the intention of taking up residency.
- As it is an onshore company, will I receive a licence once the company is incorporated?
Yes, all Free Zone companies have a trade licence specific to their business activity. It is possible to obtain licences for Consultancy, Trading, Manufacturing or Industrial activities and, as mentioned above, both of the Free Zones focus on particular industries.
- Can I have a physical office in Dubai with a Fujairah Free Zone Company?
No, if you require physical office space, your office must be based within the Free Zone itself because all Free Zone companies must have a registered address within the Free Zone.
Sovereign can assist with the incorporation of a Free Zone Company in the UAE. For more information please contact: