Business Setup in UAQ Mainland

Starting a business in Umm Al Quwain is a smart choice for entrepreneurs in the UAE. With low costs, a supportive business environment, and flexible setup options in the mainland or free zone, UAQ makes it easy to enter the UAE market.

The straightforward setup, zero corporate taxes, and growth opportunities in trade, logistics, and services make it ideal for both new and established businesses.

100% Foreign Ownership Available
Strategic Industrial Growth Hub
Low Operational & Labor Costs
Zero Corporate & Income Taxes
SME Support & Growth Fund

Business Setup

Company Formation

Bank Account Opening

Visa Services

Types of Business Licenses in Ajman

Commercial

For businesses involved in buying, selling, and distributing goods. Allowing trading both locally within the UAE and internationally.

Industrial

For companies in manufacturing, assembly, or industrial production, allowing import of materials and export of goods.

Service

A license for businesses in services like logistics, travel agencies, and car rentals, allowing operations locally and internationally.

 

General Trading

For businesses trading multiple product categories, covering up to ten product lines, offering flexibility for trading operations.

Process of Business Setup in UAQ Mainland

Select Your Business Activity

The first step is to choose your business activity from the list of permitted activities under Umm Al Quwain’s regulations. Whether it’s trading, services, or manufacturing, your business activity will influence the type of business license you need.

 

Choose a Business Structure

Based on your business activity, you need to select the appropriate business structure. Common options include Limited Liability Company (LLC), Sole Proprietorship, Branch of a Foreign Company, and Professional Firm. The chosen structure will define the legal framework of your company.

 

Reserve a Trade Name

Register a unique trade name for your business. Make sure that it complies with UAE naming rules, which prohibit offensive or religious terms. The trade name should reflect your business activity and must not already be in use.

 

Apply for Initial Approval

Submit your application for initial approval to the Department of Economic Development (DED). This approval confirms that your chosen business activity and trade name are acceptable under UAE regulations.

 

Secure Office Space

Securing physical office space within the mainland of Umm Al Quwain is mandatory. The size and type of office space required will depend on your business activity. This step also impacts how many employee visas your company will be eligible to sponsor.

 

Prepare Required Documents

To move forward with your company setup, you’ll need to gather and submit the necessary documents. While this varies by business type and structure, the process typically includes items like shareholder details, initial approvals, and office lease agreements.

 

Obtain Necessary Approvals

Depending on your business activity, additional approvals from other government bodies may be required. Certain sectors, such as healthcare, finance, or education, may need approvals from specialized authorities.

 

Pay Fees and Finalize the License

After receiving all the necessary approvals, you will need to pay the relevant fees to obtain your business license. Fees vary depending on the type of business activity and structure. Once paid, your business license will be issued, allowing you to operate legally in Umm Al Quwain Mainland.

Apply for Visas

With your business license in hand, you can apply for UAE residency visas for yourself and any employees. The number of visas you can sponsor is typically linked to the size of your office and the nature of your business.

 

Open a Corporate Bank Account

The final step is to open a corporate bank account to manage your business finances. Once your business is licensed and visas are approved, this process is straightforward through UAE banks.

 

Required Documents for Company Formation in UAQ

To complete the company formation process in Umm Al Quwain Mainland, a set of key documents is required to ensure legal compliance and smooth registration:

Copies of Passports: Required for all shareholders and managers.
No Objection Certificate (NOC): Needed for UAE residents if applicable.
Initial Approval Certificate: Issued by the Department of Economic Development (DED).
Lease Agreement: Proof of secured office space.
Memorandum of Association (MOA): For LLCs, outlining roles and capital distribution.
Emirates ID and Visa Copy: For UAE residents, if applicable.
KYC Application: Standard for anti-money laundering compliance.

Key Benefits of Setting Up a Business in Umm Al Quwain

Strategic Infrastructure Growth

Tax-Free Earnings

Lower Operational Costs

New Business Opportunities

Government Support

100% Foreign Ownership

Mainland vs. Free Zone in UAQ

Mainland Setup

Business Ownership: 100% foreign ownership in most sectors.

Market Access: Full access to UAE and government contracts..

Hiring: No restrictions on foreign hiring; visas depend on office size.

Corporate Tax: No corporate or personal taxes.

Office Space: Physical space needed, starting rent from AED 12,000.

Licensing: Licenses from UAQ DED for various sectors.

Local Market: Free trade within UAE mainland.

Setup Costs: Higher costs due to office and possible sponsorship fees.

Free Zone Setup

Business Ownership: 100% foreign ownership.

Market Access: Operate in free zone or internationally.

Hiring: Flexible hiring policies with visa quotas.

Corporate Tax: No corporate or personal taxes.

Customs Duty: Duty-free; 5% applies for UAE transfers.

Office Space: Optional; virtual office starts at AED 5,750 yearly.

Licensing: Issued by UAQ Free Zone Authority.

Local Market: Limited direct access to the UAE mainland.

Setup Costs: Lower costs, starting from AED 5,750, ideal for startups.

Free Zone Business Structures in UAQ

Free Zone Establishment (FZE)

Free Zone Establishment (FZE)

An FZE is a limited liability company with one shareholder, offering full foreign ownership, tax exemptions, and customs benefits. Ideal for those wanting free zone advantages.

Free Zone Company (FZC)

Free Zone Company (FZC)

An FZC is a limited liability company with two or more shareholders, suited for import-export, e-commerce, or international trade, with full foreign ownership and simple regulations.

Business Entities Permitted in UAQ

Limited Liability Company (LLC)

An LLC allows up to 100% foreign ownership in many sectors, with liability limited to capital shares. Ideal for small to medium businesses, suitable for mainland and free zone.

Sole Proprietorship

For individuals who want full control and personal responsibility. Best for small businesses and independent freelancers in consultancy or services.

Branch of a Foreign Company

Allows foreign businesses to open a branch in UAQ under the parent company’s name, with 100% foreign ownership. Ideal for companies expanding into the UAE.

Professional Firm

Designed for professionals offering services like legal or consulting. Owners have unlimited liability, typically suited for knowledge-based industries.

Business Setup Consultants in Umm Al Quwain Mainland

How Leaders HUB Can Help ?
Leaders HUB Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Business Setup in Umm Al Quwain Mainland, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

ASK WHAT YOU WANT TO KNOW

FAQS

How much does it cost to set up a business in Umm Al Quwain?
Business setup costs in Umm Al Quwain vary depending on the type of license and business structure. Mainland company setup costs typically start at AED 17,000, while free zone setups can begin from as low as AED 5,750 annually for virtual offices.

What are the main business license types available in Umm Al Quwain?
Umm Al Quwain offers a variety of licenses, including commercial licenses, general trading licenses, industrial licenses, consultancy licenses, and more. Choosing the right license depends on your business activities.
How do I choose between mainland and free zone setup in Umm Al Quwain?
Mainland setups offer full access to the UAE market and no limitations on hiring foreign employees, while free zone setups provide 100% foreign ownership, lower setup costs, and customs duty exemptions. The best choice depends on your market focus and business goals.
What are the most common business activities in Umm Al Quwain?
Common business activities in Umm Al Quwain include trading, logistics, manufacturing, and services. The emirate is also growing as a hub for tourism and fisheries, with emerging opportunities in renewable energy and technology sectors..
Can I hire foreign employees for my business in Umm Al Quwain?
Yes, both mainland and free zone setups in UAQ allow for the hiring of foreign employees. The number of visas you can sponsor typically depends on the size of your office space.
What documents are required for setting up a company in Umm Al Quwain?
Common required documents include copies of passports for all shareholders and managers, a No Objection Certificate (NOC) for UAE residents, an initial approval certificate from the Department of Economic Development (DED), and a lease agreement for office space.
What are the benefits of setting up a business in the UAQ Free Zone?
The UAQ Free Zone offers 100% foreign ownership, customs duty exemptions, and lower operational costs. Additionally, it provides flexible licensing options and the opportunity to operate internationally with fewer regulatory requirements.

Can I operate multiple business activities under one license in Umm Al Quwain?
Yes, with licenses such as the general trading license, you can operate multiple business activities under one license, allowing for flexibility in business operations.
How long does it take to set up a business in Umm Al Quwain?
The business setup process typically takes around 4 weeks, depending on the business structure and required approvals.
What is the process for obtaining a trade license in Umm Al Quwain?
To obtain a trade license, you need to select your business activity, choose a legal structure, register a trade name, secure office space, and submit the necessary documents to the Department of Economic Development (DED).
Still Have More Questions?
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Leaders Hub, a subsidiary of Happy Home Holding Ltd, was established 2002 in Dubai, UAE in 2024 and is a business centre includes private offices, virtual offices, coworking space, and meeting rooms.

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