Umm Al Quwain Free Trade Zone (UAQ FTZ) is a government free zone in the emirate of Umm Al Quwain, with roots in the Ahmed Bin Rashid Port and Free Zone. It appeals to traders, consultants and first-time founders who want a flexible route to a UAE licence without a complicated setup.
Here is how the zone works, based on the authority’s own rules.
Location and background
The authority describes its location as around 30 minutes from Dubai International Airport. The neighbouring Ahmed Bin Rashid Port is operated by Hutchison Ports, giving trading and logistics businesses a working port close by.
Entity types in Umm Al Quwain Free Zone
According to the UAQ FTZ licences and entity page, every company formed in the zone is a limited liability entity. Each must have a natural person as manager, director and secretary. You can choose from:
- Free Zone Establishment (FZE): for a single shareholder.
- Free Zone Company (FZC): for two to 50 shareholders.
- Branch: a branch of an existing company.
The authority sets a minimum capital of AED 300,000, with a share value of AED 1,000. It also states that proof of start-up capital is not required.
Licence options
UAQ FTZ issues Commercial, Consultancy or Service, Industrial and Freelancer licences, with more than 1,500 business activities to choose from. The rules are flexible:
- A Commercial licence can cover 10 similar activities or 3 different categories.
- Consultancy, service and freelancer licences can include two activities.
- A company with a Commercial licence can add a Consultancy or Service licence to the same entity, so there is no need to set up a second company.
- Licences run for a minimum of one year, with multi-year options available.
- Activities can be amended at any point during the licence period.
The authority also notes that setup can be completed remotely, which suits founders who are still overseas.
Selling to customers in the UAE
This is the point founders most often misjudge. UAQ FTZ states that a free zone licence allows you to do business within the free zone or outside the UAE. To sell into the local UAE market, you need to work through an agent or distributor. There are no restrictions on taking part in UAE exhibitions.
If most of your customers will be in mainland UAE, compare this route with a mainland licence before you commit.
Corporate Tax for Umm Al Quwain Free Zone companies
Free zone companies are Taxable Persons under the UAE Corporate Tax Law and must register with the Federal Tax Authority, as the Ministry of Finance confirms. A Qualifying Free Zone Person can benefit from a 0% rate on Qualifying Income, provided it meets the required conditions. Other income may be taxed under the standard rules, and returns are due within nine months of the end of each tax period.
Who Umm Al Quwain Free Zone suits
- Trading companies that want several activities under one licence
- Consultants who plan to add a trading arm, or traders adding services, within one entity
- International founders who want to set up remotely
- Businesses whose customers are mainly outside the UAE
How Bexford can help
Choosing between UAQ FTZ, other northern emirates free zones and a mainland licence comes down to your activities, customers and visa needs. Bexford helps you compare the options, structure your activities correctly and prepare a complete application. We also support what comes next, including corporate banking, visas and Corporate Tax registration. Licences are issued by UAQ FTZ, and our job is to make sure your application is complete and accurate when it is submitted.
Explore our free zone company formation services or book a free consultation.