Trading Company SetupWholesale of Food and Beverages

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

The minimum share capital required for SPC company is AED 50,000. Its contribution is optional.  If the share capital exceeds 5,000,000.00 AED, its contribution becomes mandatory.

The SPCFZ 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 Sharjah, the cultural capital of the UAE, in close proximity to both Dubai and Sharjah airports, as well as the Khalid and Hamriyah ports. This provides easy access to key markets in the Middle East, Africa, and South Asia, positioning the free zone as a vital logistics and trade hub.
• 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 licenses for more than 2,000 types of businesses, enabling entrepreneurs to develop projects across various industries, including publishing, media, e-commerce, trade, services, and manufacturing.
• Combining business activities. The free zone allows the combination of various business activities under a single license, reducing operational costs and expanding the range of services and products offered to clients.
• Ecosystem for publishers. The free zone has established the Publishers Hub — a unique environment that helps publishers optimize printing processes and expand their presence in international markets. This makes the free zone an ideal choice for companies operating in publishing, media, and digital content.

Various rental property options are available within SPC, provided upon preliminary request depending on availability:

Office Solutions:

• Coworking (cost included in the license fee): a workspace in a coworking area that can be accessed for up to 4 hours per month during business hours. The number of hours can be increased to 10, 20, or 40 for an additional fee of 1000, 2000, and 3000 AED, respectively.
• Office Space "Furnished Office" (AED 900 per sq.m./year): an office space ranging from 20 to 30 m² with unlimited 24/7 access. A refundable deposit for the selected type of space is required when submitting the application for company registration.
• Office Space "Furnished Office" (AED 750 per sq.m./year): an office space ranging from 20 to 30 m² with unlimited 24/7 access. A refundable deposit for the selected type of space is required when submitting the application for company registration.

Business Properties:

• Storages (AED 480 per sq.m./year): warehouse spaces within SPC. A refundable deposit for the selected type of space is required when submitting the application for company registration.
• Shell / Core Spaces (AED 550 per sq.m./year): unfinished spaces within SPC. A refundable deposit for the selected type of space is required when submitting the application for company registration.

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.

SPCFZ 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.
• Student Visa:
  • Issued to foreign students enrolled in universities and colleges registered with the freezone.
  • Allows for living and studying in the UAE.
  • Valid for the duration of the study period.