UAE is known for providing exclusive opportunities for all types of businesses. The country is especially known for welcoming foreign investors, entrepreneurs, and professionals. These investors and professionals find a suitable place in the form of free zones that provide tax benefit, complete business ownership, and several other advantages.
A prominent example is the small emirate of Umm al Quwain that hosts a single free zone (Umm al Quwain Free Trade Zone or UAQFTZ). This small emirate is becoming more and more famous mainly among small and medium entrepreneurs thanks to the facilities it provides for a large number of business activities.
Table of Contents
Benefits of UAQ Free Zone Company Formation
Recently, large numbers of investors are taking advantage of these facilities for a company set up in UAQ Free Zone. Following are few important reasons that are attracting more and more foreign investors towards Umm al Quwain Free Zone.
Most of the free zones in UAE are located at a place that is easily accessible through seaport and airport. The same case is there with UAQFTZ in Umm al Quwain as well. In fact, the said free zone has unique qualities that are not available in most other free zones.
UAQFTZ is connected with other major business centers around the world through major seaports and airports. Despite that there is no international airport in the emirate of Umm al Quwain, this free zone is just 5 minutes away from Dubai International Airport and 15 minutes away from Sharjah International Airport.
Best for small investors
An exclusive advantage available in UAQFTZ for foreigners is that it is extremely cost-effective as compared to larger and more famous emirates like Dubai and Abu Dhabi. This is also obvious in the UAQ Free Zone as different facilities are provided in this free zone according to the requirements of small and medium businesses.
One such facility is the lower cost that is charged for all functions and services like licensing process, renting an office, starting a business, etc. All these essential requirements are available in there at extremely inexpensive rates as compared to free zones of bigger emirates.
A large number of businesses
Most of the free zones in the UAE are exclusive to a single type of business activity. These free zones provide exclusive advantages and facilities to the type of industry that they support. Few examples of these free zones are Dubai Media City – exclusive for the media industry, Dubai Internet City, Dubai Industrial Park, etc. But there is no such compulsion in Umm al Quwain Free Zone. This is a general free zone in UAE that provides assistance to a large number of businesses with equal liberty and support.
Quick approval and setup
The registration and license process for company formation in Umm-Al-Quwain free zone. is also simple and quick. There are very few necessary documents required for the registration process. The administration of the free zone is also quite supportive. This ends up in the completion of the whole registration process in just a few days.
Apart from that, already prepared offices and warehouses are available with the provision of all necessities of a business. This makes it easier for a company to set up its business in the minimum timeframe.
Multiple license options
Availability of a large number of business activities has been made possible with the provision of multiple licenses available to businesses according to their requirements. General trading license, commercial license, service license, consultancy license, and freelance permit are the types of licenses that can be chosen in UAQFTZ according to the type of business.
These licenses provide facilities for merchants, service providers, small and medium industries and freelancers to set up their business here. These licenses are also available without much cost as compared to licenses in many other free zones.
Complete Tax Exemption
Tax exemption is an important feature available in all free zones. All free zones in UAE were exempted from all types of taxes before the implementation of VAT in 2017. But now VAT is applicable to businesses present in several free zones. But a special advantage available to all businesses in UAQ Free Zone is that they are free from paying any type of taxes, including VAT. The reason is that UAQFTZ is one of the few free zones in UAE that are given exemption from VAT.
Adopting modern techniques
The UAQ Free Zone is not only providing the best business opportunities for the present, but it aims for the upcoming era. This exceptional free one has adopted the latest strategies that will prove beneficial for businesses in the future as well. It has adopted a few modern business laws for this purpose. Few such rules and regulations include up to 50 shareholders for a single business venture and multiple licenses available for the same entity.
Ideal for back-end operations
Umm al Quwain Free Zone is an ideal location if your business depends on backend operations for its growth or better functioning. Due to its vast area, that also includes Umm al Quwain industrial area, you can easily manage your backend operations at an affordable cost in this free zone as compared to other large and expensive cities. You can also use this free zone for operations like back offices, legal outsourcing, R&D Centres, etc.
All these advantages clearly reveal the reason for the fast growth of UAQ Free Zone among businesses, especially SMEs. Setting up your company in UAQFTZ isn’t difficult at all if you contact a formidable consultancy firm. We at Riz & Mona Consultancy can assist you in handling all such issues.