When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in UAQ FTZ

Government Fee

from 13 500 AED

Processing time

from 3 business days

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Umm Al Quwain

UAQ FTZ (Umm Al Quwain Free Trade Zone) is a free economic zone (free zone) established in 1986 in the Emirate of Umm Al Quwain, UAE. Over the decades, UAQ FTZ has solidified its position as a dynamic and reliable hub for business, attracting companies from various industries and playing a key role in the economic development of the region. The free zone offers a wide range of infrastructure solutions, including modern office spaces, warehouse facilities, and industrial zones. These resources are ideally suited for businesses in sectors such as trade, professional services, logistics, manufacturing, and e-commerce. Businesses registered in UAQ FTZ are permitted to operate both within the free zone and beyond the UAE. UAQ FTZ issues the following types of business licenses: Commercial (wholesale and retail trade) Service (provision of services) Industrial (manufacturing) Freelance Strategically located near key transport routes and ports, UAQ FTZ provides easy access to vital regional markets. The free zone ensures equal opportunities for startups, small and medium-sized enterprises, and large corporations, creating an environment conducive to growth, innovation, and the strengthening of business positions within the region.

What you get:

Access to Local and Global Markets
Strategic Location
Remote Company Registration
Full Profit Control
Wide Range of Business Activities
Infrastructure
Tax and Customs Benefits

About Umm Al Quwain Free Trade Zone

UAQ FTZ (Umm Al Quwain Free Trade Zone) is a free economic zone (free zone) established in 1986 in the Emirate of Umm Al Quwain, UAE. Over the decades, UAQ FTZ has solidified its position as a dynamic and reliable hub for business, attracting companies from various industries and playing a key role in the economic development of the region.

The free zone offers a wide range of infrastructure solutions, including modern office spaces, warehouse facilities, and industrial zones. These resources are ideally suited for businesses in sectors such as trade, professional services, logistics, manufacturing, and e-commerce. Businesses registered in UAQ FTZ are permitted to operate both within the free zone and beyond the UAE.

UAQ FTZ issues the following types of business licenses:

Commercial (wholesale and retail trade)
Service (provision of services)
Industrial (manufacturing)
Freelance

Strategically located near key transport routes and ports, UAQ FTZ provides easy access to vital regional markets. The free zone ensures equal opportunities for startups, small and medium-sized enterprises, and large corporations, creating an environment conducive to growth, innovation, and the strengthening of business positions within the region.

Recently searched

Grains, Cereals and Legumes Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
Go to service
Readymade Garments Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
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Medical, Surgical Equipment and Instruments Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
Go to service
Green Buildings Construction Materials Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
Go to service
Petrochemicals Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
Go to service
Handling, Loading and Lifting Equipment Trading
Umm Al Quwain Free Trade Zone
Services:
- Registering Company
Cost20 850 AED
Duration3 bus. days
Go to service

We offer products UAQ FTZ

Visa Obtaining
Assistance with filling out documents or turnkey visa obtaining services. The services includes various types of resident visas. Tourist and transit visas are not included
Service
Company setup
Services related to the establishment of a new company
Service

Suitable Targets

Local Business

Company registration for conducting business that requires a local presence in the UAE.

International Business

Company registration for conducting business both within specific jurisdictions and outside the UAE, including international wholesale trade and the provision of services at a global level.

Regional Representation

Establishing permanent establishments or subsidiaries to promote interests and coordinate operations in the Middle Eastern market.

Popular Business Fields

Food, Beverage & Tobacco
01
Household & Consumer Goods
02
Healthcare
03
Construction & Engineering
04
Chemistry & Raws
05
Automotive, Machinery & Equipment
06

UAQ FTZ Offices and Commercial Premises

1/4

Coworking

Shared DeskA workspace in a coworking with access up to 4 hours per week during business hours upon prior reservation.

1/5

Offices

Finest OfficeFully finished offices, ready for move-in. Standard OfficePrivate offices ranging from 72 to 143 sq.m. with shell-and-core or fully fitted finishes and unlimited access during business hours.  Executive OfficeShell-and-core offices for customized interior fit-out

Business Spaces

Specialized corporate spaces or business centers designed for business networking and corporate events, including offices, meeting rooms, training rooms, conference halls, and event spaces Conferencing and Meeting facilities

1/4

Warehouses

Warehouses for the storage, processing, and distribution of goods for light manufacturing activities. Equipped with office space and a pantry, fire alarm and firefighting systems, 24/7 security, and full infrastructure for electricity, water supply, and telecommunications.

1/2

Land Plots

Land plots for long-term lease of 20+ years for development, commercial, and industrial use Industrial & Commercial Land

Accomodations

Ready-to-move-in facilities for employee and labour accommodation close to company premises. Well-spaced rooms furnished with six beds and wardrobes per room, with three meals a day provided.

Requirements for Legal Entities Names

Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations

Authorized capital requirements

The minimum share capital required for UAQ FTZ company is AED 300,000. Its contribution is optional.

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.