Fujairah is the sole Emirate situated in the eastern portion of the United Arab Emirates (UAE) and offers considerable advantages to businesses along with strategic connectivity to key cities like Dubai, Abu Dhabi and Sharjah.
Types of Businesses in Fujairah
Fujairah makes it compulsory that companies should be fully owned by UAE nationals or a minimum of 51% of share capital should be owned by nationals. The remaining 49% of share capital can be owned by foreign investors. Here are the permitted company structures in the Emirate:
- Sole Proprietorship- Investors can undertake permitted activities without national partners including legal practice, medical services, consultancies, engineering consultancies, computer consultancies and others. Legal UAE residence permits are a must for investors along with local services agents.
- LLC- Limited Liability Companies can be set up by 2-50 persons.
- General Partnership Company- These can have 2 or more partners jointly/separately accountable for liabilities of the company. This is only applicable for UAE nationals.
- Professional Company- Professional Companies are those practicing any particular profession on a primary basis that partners depend upon for their livelihood.
- Joint Venture- JVs have two or more partners agreeing via contract to share profits and losses of one or multiple commercial entities.
- Public shareholding company- These are also called public joint stock companies and are entities with equivalent division of capital into negotiable shares.
- Private shareholding company- These companies can be set up by multiple individuals with a minimum of three people required. These companies cannot invite public subscriptions for their shares.
Types of Business Licenses in Fujairah
There are various kinds of business licenses issued in Fujairah including the following:
- General Trading License- These are more expensive since they enable trading in all types of products with free exports, imports and re-exports of specified goods. It allows special local distribution of permission from Government departments for operating in free zones.
- Service License- This applies for business consultants, accounting and law firms, individual practices, etc.
- Trading or Commercial License- This applies for specific products subjected to regulations issued by authorities.
- Industrial License- These are applicable for those importing raw materials, manufacturing products and exporting finished products.
- Warehousing License- This applies for warehousing facilities on lease and also those using warehouses for packaging, storage and distribution of products.
- Manufacturing License- These are applicable when a project gets approval from a free zone authority.
Steps for Establishing Company in Fujairah
Here are the steps that you need to take for setting up your business in Fujairah:
- Get primary approval for activity of business and name from Fujairah Municipality.
- Get permission from the Department/Ministry if the business is unique in nature.
- Draft the MOA (Memorandum of Association) of the company and get it court-notarized.
- Get the capital contribution certificate from banks in case of cash shares and the auditor certificate in case of kind and cash shares alike.
- Submit the initial approval and application with a notarized copy of MOA, capital certificate, tenancy contract and other documents to the Municipality.
- Post departmental assessment, get the trade name entered in the Commercial Register and the MOA printed in the bulletin of the Ministry of Economy. The license will then be issued by the Municipality.
Documents Needed for Setting up the Business in Fujairah
- Resolution from the company board
- Valid business license
- Passport sized photographs
- Business plan
- Article of association from Embassy
- Attested memorandum of Association
- Passport copies of investors
- Passport copies of shareholders
- Suggested name of company or business
- Personal details of investors and shareholders
- Deposited mandatory capital amount in bank