Trading Company SetupCamping Requisites Trading

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

No additional approvals are required to register a company conducting this business activity.

The UAQ FTZ company registration provides various benefits and opportunities for entrepreneurs:

• Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and and enables interaction with clients and partners worldwide.
• Strategic location. The free zone is situated in Umm Al Quwain, near key transport routes, seaports, and the international airports of Dubai and Sharjah. This location ensures convenient access to regional and international markets and simplifies logistical operations.
• Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
• Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
• Wide range of business activities. The free zone offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including trade, professional services, logistics, manufacturing, and e-commerce.
• Tax and customs benefits. Designated zones offer benefits on the import, export, and re-export of goods both within their own territory and between other designated zones. These zones exempt goods from VAT, provided the criteria set by the Federal Tax Authority (FTA) are met, allowing companies to minimize their tax burden.
• Infrastructure. The free zone provides modern infrastructure, including office spaces, warehouse facilities, and land plots for customized construction projects. These resources ensure comfortable conditions for business operations, accelerate logistics processes, and support the scaling of companies.

• Various rental property options are available in UAQ FTZ, provided upon preliminary request and subject to availability:
  1. Shared Desk (AED 0/year). A workspace in a coworking with access up to 4 hours per week during business hours upon prior reservation. Included in all registration packages. The Shared Desk affords up to 4 visa quotas.
  2. Standard Offices (AED 18,000 – 31,500 /year). Private offices ranging from 72 to 143 sq.m. with shell-and-core or fully fitted finishes and unlimited access during business hours. The Standard Office affords up to 6 visa quotas, depending on the office area, calculated at 25 sq.m. per quota. A refundable deposit of AED 1,000 will be charged.
  3. Business Facilities:
     • Warehouses (from AED 280 per sq.m./year). Premises ranging from 100 to 500 sq.m., equipped with utilities and loading ramps. A refundable deposit, 10% of the annual rental cost, will be charged.
     • Land plots (from AED 18 per sq.m./year). Plots ranging from 2,500 m² intended for industrial purposes and available for short-term or long-term leases of up to 25 years.
  4. Accommodation (from 400 AED per person/month). Furnished rooms for staff with a capacity of up to 6 people. Three meals a day are included.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. 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:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • 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.
2. 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.
3. 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 and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 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.
4. 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). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. 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.
6. Other 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.

UAQ FTZ offers the following main types of UAE resident visas for foreign investors and company employees: 

• Investor Visa:
  • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
  • Allows for business management, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.
  • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.
  • Valid for two years.