Fujairah

Company Formation and Doing Business in Fujairah

Introduction

Fujairah is one of the seven emirates that make up the United Arab Emirates. Fujairah’s strategic and unique location, as the UAE’s only Emirate on the East Coast, plays a key role in its development.

The main advantages of Fujairah over the other free zones is that there is no requirement for paid up share capital or annual audit, and no requirement to show evidence of a higher education qualification when registering.

Also, as we have a very good relationship with the free zone, there is no requirement for the client to travel to the UAE to open the company. They will only need to travel when applying for their visa.

The licence issued by Fujairah will be a consultancy licence and there is a wide range of activities that can be included in the licence.

If there is only to be one investor, the cheapest option is to incorporate a free zone establishment (FZE) otherwise known as a Sole Establishment. This is a new business entity with a sole business owner (one shareholder). The individual shareholder will appoint himself orherself as a Manager of the company and will have control of the bank account and the day-to-day running. There is no necessity to appoint Directors so a Memorandum and Articles of Association are not required.

Taxation

There are no corporate or personal income taxes in the UAE. The UAE has an extensive and growing list of double tax treaties, which currently numbers nearly 60. Under these treaties profits derived from shares, dividends, interest, royalties and fees are taxable only in the contracting state where the income is earned.

Dividend income paid by a UAE company to a company which has a double taxation treaty with UAE may not be taxable in the hands of the foreign parent corporation. However, it is wise to study the text of a specific treaty before assuming anything about the tax treatment of untaxed income flows originating in the UAE.

A licenced company can apply for a Corporate Tax Residence Certificate issued by the UAE Ministry of Finance, which is the signatory for Double Tax Treaties.

Shareholders

A minimum of one shareholder is required. Shareholders will decide capital structure of the Company. No paid up share capital is required.

Visas

Once the entity has been incorporated and the licence issued, the Shareholder can apply for a UAE residence permit which is valid for three years. The person holding the visa need only visit the UAE once every six months to ensure its validity. He or she can also sponsor their immediate family.

Please note that only once the company has been incorporated and the licence issued, can the visa be applied for. In order to get the residency stamped in his or her passport, the client must travel to the UAE, take a medical test and stay in the country for a maximum of two weeks. IQTESADI can assist clients with this process and all necessary arrangements.

Time Frame

The license will take approximately 10 days to be issued (at this point the company is fully functional and a bank account can be opened). Once this has been done, we apply for an “establishment card” which takes a further 10 days. Once the establishment card has been issued, the visa(s) can be applied for and the applicant(s) must travel to the UAE. From the date of entry it takes approximately 10 days for the visa to be processed.

Office Space

It is a requirement of UAE law that every company must have a registered office. Fujairah offers a “flexi office” facility in Dubai in Boulevard Plaza which is located directly opposite the Burj Khalifa in Downtown Dubai.

Manager

Every company must have an individual manager who is named on the licence. Normally this would be the investor; however, where required, we can provide this service for a fee.

Reporting

No annual reporting is required.

Bank Account

There is no paid up share capital requirement, so the bank account can be opened after the licence has been issued.

Disclaimer
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. IQTESADI does not accept any responsibility, legal or otherwise, for any errors or omission.