Business Setup In Fujairah

The process of setting up a business in Fujairah is structured to ensure compliance with UAE regulations while being accessible to both local and foreign investors. The steps include:

• Identify Business Activity: Choose from over 2,000 economic activities, categorized into commercial, professional, industrial, tourism, agricultural, or occupational licenses.

• Select Company Structure: Options include Limited Liability Company (LLC), Free Zone Establishment (FZE), branch office, or professional company.

• Obtain Initial Approval: Secure approval for the business name and activity from the Fujairah Municipality (Mainland) or Free Zone authorities.

• Apply for Additional Permits: Certain activities may require specific permits from relevant authorities.

• Draft and Notarize MoA/AoA: Prepare and notarize the Memorandum of Association (MoA) and Articles of Association (AoA) to define the business structure and ownership.

• Complete Documentation and Fees: Submit required documents and pay registration and license fees.

• Secure Location and Lease: Choose a business location (Mainland or Free Zone) and obtain a lease agreement.

The process typically takes 2–6 weeks, with Free Zone setups often being faster due to streamlined procedures. For Mainland, applications can be submitted in person, via the Basher platform, or through business setup consultants.

Fujairah offers a compelling environment for business setup, with several advantages that attract entrepreneurs and investors:

• Strategic Location: Proximity to major ports, Fujairah International Airport, and well-connected highways ensures access to markets in the Middle East, Africa, and Asia.

• Cost-Effectiveness: Lower setup and operating costs compared to Dubai and Abu Dhabi, with competitive licensing fees and affordable office rentals.

• Tax Benefits: Zero income tax and potential corporate tax exemptions, enhancing profitability.

• Business Flexibility: No restrictions on hiring expatriates, no currency limitations, and the ability to open multiple branches.

• Free Zones: Fujairah Free Zone and Fujairah Creative City offer 100% foreign ownership, tax exemptions, and no annual auditing requirements.

• Visa Sponsorship: Support for obtaining residence and work visas for business owners and employees.

• Supportive Policies: Investor-friendly regulations and a business-friendly environment fostered by the Fujairah government.

These benefits make Fujairah a preferred choice for SMEs, startups, and multinational companies seeking growth opportunities.

The documents required for business setup in Fujairah depend on the jurisdiction (Mainland or Free Zone) and the type of license. For Fujairah Mainland, the key documents include:

• Passport copies of all shareholders.

• Proof of residence (e.g., recent utility bill or address proof).

• Trade name approval from the Department of Economic Development (DED).

• Initial approval from relevant authorities.

• Notarized Memorandum of Association (MoA) outlining business structure and ownership.

• Local Service Agent Agreement (for full foreign ownership in Mainland).

• Office lease agreement for a mandatory physical address.

• Bank reference letter (required for certain licenses).

• KYC form with details of all shareholders for compliance.

• Business plan (for specific licenses, especially complex setups).

Free Zone setups may have similar requirements but often require fewer documents, as they do not involve a local sponsor. Consultants like Shuraa Business Setup can assist with document preparation.

Fujairah offers a range of business licenses to accommodate various activities, ensuring flexibility for entrepreneurs. The main types include:

• Commercial License: For trading activities, such as buying and selling goods.

• Professional License: For consultancy, legal advice, accounting, or engineering services.

• Industrial License: For manufacturing, processing, or production activities.

• Tourism License: For hospitality and tourism businesses, including hotels, restaurants, and travel agencies.

• Freelancer Permit: For individuals offering services like graphic design, writing, or IT consultancy.

• Branch of Foreign Company: For foreign companies establishing a presence in Fujairah Mainland.

• Representative Office: For non-trading activities like market research or client liaison.

These licenses are issued by the Fujairah Municipality for Mainland setups and by Free Zone authorities for Free Zone setups.

The cost of setting up a business in Fujairah varies based on the jurisdiction, license type, visa requirements, and office space needs. General cost ranges are:

• Fujairah Mainland: AED 10,000 to AED 18,000, covering company registration, trade license issuance, office lease, and visa sponsorship fees.

• Fujairah Free Zone: Starting from AED 14,999 for a basic package, including licensing fees and flexible office solutions.

These costs are competitive, making Fujairah a cost-effective option compared to other UAE emirates. For precise estimates, contact consultants like Shuraa Business Setup.

The choice between Fujairah Mainland and Free Zone depends on business goals and operational needs. Key differences include:

Mainland is ideal for businesses targeting the UAE market, while Free Zones suit international operations with tax and ownership benefits.

Foreigners can own 100% of a business in Fujairah if they set up in a Free Zone, such as Fujairah Free Zone or Fujairah Creative City. In Fujairah Mainland, a local sponsor is required, typically holding 51% ownership, although full foreign ownership may be possible with a Local Service Agent Agreement for certain activities.

Fujairah supports over 2,000 economic activities across six main license categories:

• Occupational: Skilled trades and professions.

• Tourism: Hotels, restaurants, travel agencies, and tour operators.

• Industrial: Manufacturing, processing, and production.

• Commercial: Trading and retail activities.

• Agricultural: Farming and related activities.

• Professional: Consultancy, legal, accounting, and engineering services.

Free Zones like Fujairah Creative City specialize in media, design, consulting, and creative industries, while Fujairah Free Zone is ideal for logistics, trading, and industrial activities.

No, physical presence is not required to set up a business in Fujairah, particularly in Free Zones. Businesses registered in Fujairah Free Zones can be managed and operated remotely, with consultants like Shuraa Business Setup handling documentation, approvals, and licensing processes online. Mainland setups may also be facilitated remotely through the Basher platform or business setup consultants.