Company Registration in Fujairah- An Overview

Fujairah is a historic emirate present in the Middle East. The landscape of Fujairah is not covered by desert. There are thriving opportunities for a business to set up shop in Fujairah. Different businesses such as vendors for dry fruits, rugs and other forms of Chinese products are marketed in the mainland of Fujairah.

When it comes to the process of company registration in Fujairah, then the Fujairah municipality is the main authority which helps in developing different forms of opportunities. Apart from this, there is the Fujairah Free trade zone which was established in 1987 through a royal decree. The main reason for forming this zone is to improve the amount of foreign investment in the country.

This free trade zone area attracts different forms of sectors which include the manufacturing sector, textiles produce sector and steel sectors. This free zone covers more than 3 million square meters. Apart from this, there are separate storage facilities in Fujairah for companies to carry out different forms of business.

The common industries that thrive in this emirate include solar systems, plates, drilling equipment, construction equipment, industrial ladders, marine engineering and shipping services. Apart from this, other form of products are manufactured in Fujairah. It is the seventh largest emirate in UAE. Hence it is a preferred destination for company registration.

Benefits of Company Registration in Fujairah

The following are the benefits of company registration in Fujairah:

• Free Trade Zones

  There are free trade zones in Fujairah which include the Fujairah Free Zone (FFZ) and the Creative City. These zones were formed with the main objective to boost foreign investment and other opportunities in Fujairah. This free trade zone area attracts different forms of sectors which include the manufacturing sector, textiles produce sector and steel sectors. This free zone covers more than 3 million square meters. Apart from this, there are separate storage facilities in Fujairah for companies to carry out different forms of business.

• Vibrant Tourism Sector

  Since historic times Fujairah city has different forms of tourism. The government of Fujairah has taken different initiatives to improve the tourism sector. There are Friday markets which are established in Fujairah where dry fruits and other consumer products are available. Consumers come to Fujairah just for the purpose of the dry fruits sold here. Apart from this, there are different festivals conducted by the government of Fujairah from time to time to attract tourists.

• Oil Industry

  The port of Fujairah and the Fujairah Oil Industry zone are major oil hubs where commercial merchant liners dock for oil transit. Connecting this is the Indian Ocean which is used as a commercial hub for transport of oil and other cargo goods.

• Tax Free

  All the free trade zones in Fujairah are tax free. The government has taken different initiatives to boost foreign investment in Fujairah. Hence an investor can consider the above benefits and go for company formation in Fujairah.

Eligible Business Structures for Company Registration in Fujairah

An investor going for the process of company registration in Fujairah has to first choose the appropriate business structure. The following business structures are present in Fujairah:

• Partnership Business

  A business or an entity formed by two or more partners with an intention to share profits would be considered as a partnership. There are different forms of partnership entities in Fujairah. General partnerships would state that the liability of the partners is unlimited. Limited Liability Partnerships are entities where the liability of the partners is limited to a specific amount of capital contribution.

• Joint Ventures

  Joint Venture is an agreement or contract only for a specific period of time between two or more individuals or business with an intention to work on a specific activity or a specific project for a particular period of time. The main aspect of this form of entity is profits would be shared between the parties of the Joint venture. However, the joint venture would be operational for a limited period of time. An investor going for the process for company registration in Fujairah can choose this form of entity.

• Public Companies (Joint Stock Companies)

  This type of company is known as a public limited company. The minimum capital required for forming this type of entity is AED 10 Million. A minimum of 10 members are required to form this type of company. The shares of this company can be traded in a stock exchange.

• Private Companies

  An investor can utilise this entity for the purpose of company registration in Fujairah. The minimum capital required for forming this form of entity is AED 2 Million. A minimum of three members would be required to form this type of entity.

• Limited Liability Companies

  This is one of the most preferred business structure utilised for company registration in Fujairah. The minimum capital required for this type of entity is AED 1, 50,000. In order to establish an entity in Fujairah the business name of the entity must be secured from the relevant municipality.

• Branch Offices

  A foreign company wanting to establish an entity in Fujairah can utilise this type of business entity. A branch office can carry out any activities which are under the scope of the foreign parent company. Usually all types of activities can be carried out by the branch office.

• Representative Offices

  A foreign company can also establish a representative office in Fujairah. This type of office would not carry out any form of operations that generate revenue. However, promotional activities and market research can be carried out by the representative office.

• Free Zone Entities

  An applicant going for Company Registration in Fujairah would be restricted to own the company. A foreign entity is allowed to own only 49% shareholding in a company. A UAE national has to be appointed to hold 51% ownership. This is mandatory as per UAE Federal Law. If a company wants absolute ownership of the company formed in Fujairah, then this form of entity can be utilised. There is no form of tax charged in these free trade zones.

Eligibility Criteria for Company Registration in Fujairah

The following eligibility criterion has to be followed for company registration in Fujairah:

• Minimum Capital

  An applicant has to suffice the minimum capital required for company registration in Fujairah. Depending on the type of business utilised, the applicant must have the minimum capital.

• Free Trade Zone Requirements

  If the applicant has to form a company in one of the free trade zones, then the criteria for setting up a business in the free trade zone have to be sufficed.

• Visa Requirements

  Foreigners would usually choose free trade zones for company registration in Fujairah. Hence necessary steps have to be taken by the company in securing visas for foreign nationals to be employed in Fujairah.

• Key Executives

  Minimum numbers of Executives have to be appointed as per the requirements of the type of business formed in Fujairah.

Procedure for Company Registration in Fujairah

For a foreign national, the preferred business to be utilised is a Free Zone company. There are many benefits of forming a free zone company. The following procedure has to be considered for company registration in Fujairah:

Free Zone Company

• Approvals

  First and foremost the applicant has to secure the required approvals. There are different free trade zones present in Fujairah. Hence the applicant would have to secure all the approvals first.

• Initial Approval

  For the initial approval, the applicant would have to submit the below documents:

  • Fully Completed Application Form

  • Business Plan- All the goals and objectives of the business must be provided in the business plan.

  • If the company is a local company, then copies of the existing license must be submitted to the authority.

  • Passport Copies of the Shareholders of the Company must be submitted. Along with this, copies of the passport of the Managing Director, Directors and other executives must be submitted. The copies must be in coloured version. Black and White copies would not be accepted.

  • Signatures of the shareholders and managing director.

  • Annual Statements/ Audited Financial Reports of two years of the corporate entity require to be submitted.

  • Bank Statements of the Shareholders.

  • No Objection Certificate from the Current Sponsor.

  • Letter of Intent and title deed.

  • The managing director must also provide the Registry Identification Code (RIC). The copies of the RIC must be signed and notarised. (Original Copy).

• If the applicant going for company registration in Fujairah carries out different freelance activities, then fewer documents have to be submitted. The following documents have to be submitted for freelancers:

  • Registration Application.

  • Curriculum Vitae (CV).

  • Reference letter from the Bank.

  • RIC (Original Copy- Signed and Notarised).

• Final Registration

  Once an initial registration is secured, the applicant has to pay the requisite fee for license and registration. This is the final application for registration. Hence the following documents have to be provided:

  • Completed Application.

  • Board Resolution Taken related to registration (attested and notarised).

  • POA given to managing director (attested and notarised).

  • Memorandum of Association and Articles of Association (attested and notarised).

  • Signature of the Managing Director (attested and notarised).

  • Passport Information (attested and notarised).

  • Information on the share capital.

• Provision of License

  The Fujairah Municipality (Fujairah Chamber of Commerce) would prepare the lease agreements. With this the trade license would be issued to the applicant.

Documents required for company registration in Fujairah

The following documents are required for company registration in Fujairah:

Company

• Fully Completed Application Form

• Business Plan- All the goals and objectives of the business must be provided in the business plan.
• If the company is a local company, then copies of the existing license must be submitted to the authority.
• Passport Copies of the Shareholders of the Company must be submitted. Along with this copies of the passport of the Managing Director, Directors and other executives must be submitted. The copies must be in coloured version. Black and White copies would not be accepted.
• Signatures of the shareholders and managing director
• Annual Statements/ Audited Financial Reports of two years of the corporate entity require to be submitted.
• Bank Statements of the Shareholders
• No Objection Certificate from the Current Sponsor
• Letter of Intent and title deed
• The managing director must also provide the Registry Identification Certification.

For Freelancers

• Registration Application
• Curriculum Vitae (CV)
• Reference letter from the Bank
• RIC (Original Copy- Signed and Notarised).

Final Documents for Company Registration in Fujairah

• Completed Application
• Board Resolution Taken related to registration (attested and notarised)
• POA given to managing director (attested and notarised)
• Memorandum of Association and Articles of Association (attested and notarised)
• Signature of the Managing Director (attested and notarised)
• Passport Information  (attested and notarised)
• Information on the share capital

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