Fujairah Free Zones: A Business Haven in the UAE

Fujairah, one of the seven emirates of the UAE, has emerged as a preferred business destination for foreign investors. The emirate’s free zones offer a plethora of benefits, including cost-effectiveness, excellent connectivity, and ease of doing business. The picturesque landscape, marked by mountains, adds to the allure of setting up a business in Fujairah. This article delves into the unique aspects of Fujairah’s free zones that make them an attractive proposition for entrepreneurs worldwide.

Fujairah Free Zones: A Strategic Business Location

Fujairah’s strategic location on the UAE’s East Coast makes it an ideal hub for businesses involved in export, import, and re-export activities. Fondly referred to as the ‘lung of the UAE’, Fujairah is a hive of commercial activities, particularly since the inception of its free zones.

The free zones in Fujairah are conveniently located near the Port of Fujairah, providing easy access to all Arabian Gulf ports, the Red Sea, Iran, India, and Pakistan. The free zones offer excellent logistic links to the world via Fujairah International Airport, Fujairah Sea Port, and road connectivity to the Middle East and beyond. This strategic location, coupled with access to major shipping routes, makes Fujairah’s free zones an ideal place for doing business.

Licensing in Fujairah Free Zones

Choosing the right license that authorizes the desired business activity in Fujairah’s free zones is crucial. The common license types include:

Trading License

This license is required for export, import, distribution, or storage of specific products.

General Trading License

This license authorizes the trading of a diverse range of products.

Service License

This license is for professional service providers, including consultancy services, accounting & bookkeeping services, graphic design services, and media.

The Business Setup Process in Fujairah Free Zones

The process of company formation in Fujairah’s free zones involves several steps, including selection of business activity, determination of a legal form, reserving a company name, submission of documents, selection of a facility, license issuance, visa processing, and bank account opening.

Benefits of Setting Up Business in Fujairah Free Zones

Fujairah’s free zones offer numerous benefits, including 100% foreign ownership, 100% repatriation of capital and profits, zero corporate tax, zero personal income tax, strategic location, excellent connectivity to major trading hubs, availability of all services under one roof, quick and easy incorporation, and world-class facilities.

Legal Entities in Fujairah Free Zones

Investors need to select an appropriate ownership structure for their proposed company in a Fujairah free zone. The options include:

Free Zone Establishment (FZE)

An FZE is composed of a single shareholder, which can be an individual or a corporate entity.

Free Zone Company (FZC)

An FZC is an independent legal entity formed by at least two shareholders.

Branch Company

Both foreign and UAE companies can open a branch office within the free zone.

The Leading Free Zones in Fujairah

Fujairah’s free zones have played a pivotal role in enhancing the economic resilience of the emirate. They have transformed the industrial landscape and generated significant employment opportunities. The two leading free zones in Fujairah are:

Regulatory Compliance in Fujairah Free Zones

Companies operating in Fujairah’s free zones must adhere to regulatory requirements such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulations (ESR), and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Non-compliance can result in severe penalties, including suspension of trade license and sharing of information with foreign competent authorities.


Need Assistance?

PW offers comprehensive services covering essential requirements such as visa processing, document drafting, government liaising, bank account opening, and more. Our team of business setup consultants, PRO service executives, and compliance advisers ensures a hassle-free company incorporation process in Fujairah Free Zones

Umair Ahmad

Company Formation Specialist
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