HomeFree Zone Company - Umm Al Quwain Free Trade Zone - Threads and Yarns Trading

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Trading Company SetupThreads and Yarns Trading

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

This company can engage in the sale of various types of threads for tailoring and embroidering garments, curtains, drapery, and upholstery, as well as cotton and wool yarns used in the weaving and spinning industries.

About the company's activities
Types of activities

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

  • Threads & Yarns Trading. Includes reselling all kinds of threads for tailoring and embroidering garments, curtains, drapery and upholstery, also, includes cotton and wool yarns used in weaving and spinning industries.

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 Requirements
  • Must correspond to the company’s business activities
  • 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 Allah or God, or any other religious terminology
  • Must not contain the names of local/international religious, political or governmental organizations
  • Must not infringe any third party's intellectual property rights
  • Must not violate the UAE laws or contain words that are obscene, indecent or generally offensive
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.

Advantages

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.
Offices/Premises
  • 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.
Tax Regime and Profit Management

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.
Resident Visas

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.

Order service directly at UAQ FTZ

Total:

Order the support of an authorized platform partner

Plan:
Standard
Premium
Total:

Order services directly through UAQ FTZ

With the assistance of our platform manager, who will provide you with service instructions, arrange meetings with UAQ FTZ representatives, and assist in coordination

  • Direct access without intermediaries
  • No additional fees
  • No commissions

Choose our "Standard" plan

Receive expert guidance from an authorized consultant who will manage the entire process of obtaining UAQ FTZ services

  • Time-saving
  • Predictable outcomes
  • Personal expert assistance
  • Business-class transportation to service locations
  • Minimal involvement required

Opt for our "Premium" plan for top-tier expert guidance

An elite consultant will oversee the process of obtaining UAQ FTZ services, ensuring a seamless experience

  • VIP airport reception in Dubai for one person
  • Premium-class airport-hotel-airport transfers
  • Expedited VIP procedures
  • Guaranteed results
  • Personal expert available 24/7
  • Premium-class transportation to service locations
  • Minimal involvement required
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