HomeCatalogSoap and Hair Care Products Trading

Article: 4881

Company setupSoap and Hair Care Products Trading

Umm Al Quwain Free Trade Zone logo
JurisdictionUmm Al Quwain Free Trade Zone
Service
Short description

This company can engage in the sale of hair care products, such as shampoos, oils, lotions, and tonics, as well as trade in toilet soap and handwashing soap in bars and liquids, including foaming soap and similar products.

About the company's activities

Types of activities

The following business activity has been selected for the UAQ FTZ company setup:

  • Soap & Hair Care Products Trading. Includes reselling hair care products like shampoo, oils, lotions, tonics, whether chemically originated or from natural extracts (herbs), also, toilet and hand washing soap in bars and liquid, in addition toilet foamy soap and similar products.

The company can engage in up to 2 business activities from the service sector; or up to 3 types from different groups of the commercial sector, or up to 10 types from a single group of the commercial sector, under the same license without additional fees.

Share Capital Requirements

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

Additional External Regulator Approvals

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

Company name requirments
  • 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
  • Must correspond to the company’s business activities
Bank Account

Entrepreneurs can open corporate accounts in traditional banks with physical branches, as well as in digital banks and payment systems.

When choosing a bank to open a corporate account, consider the following: service level, fees, available currencies, online banking performance, bank reputation, as well as other conditions that may be important for your business.

Successfully opening a corporate bank account requires a well-prepared documentation package, which may vary depending on the specific requirements of each bank. Documents submitted incorrectly or incompletely may negatively affect the bank's final decision in processing the application.

About Jurisdiction

Name and Description
  • Title: Umm Al Quwain Free Trade Zone
  • Description:

    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.

Tax regime and income management

  • The UAE has several 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 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.

    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 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.

    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). 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.

    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. 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.

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    Download the company formation guide

    • Step-by-step action plan
    • Document checklist
    • Direct submission of documents to UAQ FTZ
    • You pay only the government fee separately
    ......

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