Fujairah - Licenses

Fujairah is different from the other emirates as it is the only one that is located on the east of the UAE but is well connected to other cities like Sharjah, Dubai and Abu Dhabi. Being easily accessible, it is an ideal hub for new businesses who are looking to start up in the fields of logistics, trading, assembling and manufacturing. It is the fifth largest Emirate in the country.

In over 2 decades, the business in Fujairah has grown manifold with the influx of cross-border investors from the Gulf Cooperation Council (GCC) countries, Africa, India, USA, Europe, West Asia, and China investing in manufacturing, logistics, processing, trading, and assembling, because of the latest technology and resources available in the region.

Advantages of Setting Up Your Business in Fujairah

• Strategic location
• A global business focal point
• Gateway for other vast business nations
• The modern, efficient, and sophisticated communication system
• State policies permit full repatriation of capital and profits
• Opportunity for investment in the tourism sector
• Fujairah has liberal economic policies and legal framework
• The procedures for staffing and recruitment in Fujairah are simple
• The emirate has advanced infrastructure and efficient communication facilities at a relatively inexpensive cost
• Fujairah supports sponsorship and visas for an affordable skilled workforce
• Free zones in Fujairah provide for 100% foreign ownership, the exemption for import/export duties, and full repatriation of capital/profits

Fujairah was also following its guidelines governing the actions of foreign corporate interests in the Emirate. In 1984, Federal Law No. 8 of 1984, its amendment by Federal Law No. 13 of 1988 - the ‘Commercial Companies Law” and its by-laws have been given out. The law makes it mandatory that the companies must be wholly owned by the UAE nationals or own at least 51% of its share capital must be owned by nationals, while the remaining 49% may belong to the investors. The decree provides that commercial companies established in the U.A.E must take any of the following legal forms:

1. Sole Proprietorship

An investor is permitted to practice specific types of corporate activities allowed for expats without having a national partner. Such undertakings are medical services, legal practice, engineering consultancies, and consultancies, computer consultancies and similar facilities as long as that such an investor holds a legal UAE residence permit. However, it is a condition that they should have a local services agent, and consequently, a service agency contract needs to be move-in between the investor and a UAE national.

2. Limited Liability Company

This is the most common form of corporate structure in Fujairah. An LLC can be incorporated by a minimum of two and a maximum of fifty persons whose liability is limited to its shares in the business.

3. General Partnership Company

This business entity consists of two or more partners who are jointly and separately accountable for all the firm’s liabilities. Partnership companies are confined to the UAE nationals only because partners are reliable towards the obligations of the business by all their assets, which may not apply to expats as in maximum of the cases their assets are usually in abroad.

4. Professional Company

A professional company in Fujairah is the one that practices a profession as its primary object and that partners depend on their livelihood on the conscious effort they exercise more than on earning from the business of others.

5. Joint Venture

A joint venture is the one where two or more partners agree by contract to share losses and profits of one or more commercial company, which will be passed on in the name of one of the partners.

6. Public Shareholding Company

Public Shareholding Company, also referred to as a public joint stock company (PJSC), is a company with a capital divided into equivalent negotiable shares. In such businesses, a shareholder’s liability is limited by the number of shares held by them.

7. Private Shareholding Company

A Private Shareholding Company is formed by several persons, not less than three. Unlike a public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares.

The business license issued in Fujairah are as below:

• General trading license - perfect for allowing investors to trade across many products.
• Manufacturing license - ideal for businesses that wish to manufacture goods.
• Trading license - products that are subject to the license authority can be traded with this license.
• Service license - for businesses offering accounting, law and business services.
• Warehouse license - for businesses who wish to use their warehouses for distribution of goods, storage and packaging.
• Industrial license - for businesses that wish to import raw materials and export into finished goods.

• A valid business license
• A resolution from the Board of the Company
• Attested Memorandum of Association
• An Article of Association from the Embassy
• Business plan
• Passport-sized photographs
• Passport copy of the investor
• Passport copy of shareholders
• Suggested name for the business or organization
• A deposited mandatory capital amount in the bank
• Personal information of shareholders and investors

Forming a company in Fujairah and its free zone areas are lucrative. However, there are several steps one needs to undertake to register their business in this Emirate. Typically, the procedure involves the identification of your business activity, registration of company or trade name, submission of legal documents to pertinent authorities, and the application of visas (if necessary).

Also, it’s important to note that the specifics of the business setup process depend significantly on the kind of licenses and permits that are applied for, as well as the forms of business that are to be established.

1. Obtain primary approval for name and activity from Fujairah Municipality
2. Obtain permission from the concerned Ministry/Department in case the business is of unique nature
3. Draft up the company’s Memorandum of Association and have it notarized from the courts
4. Capital contribution certificate is obtained from banks for cash shares and auditor’s certificate for both cash shares and kind shares
5. Submit applications and initial approval along with a notarized copy of Memorandum of Association, tenancy contract, capital certificate, etc. to the Municipality
6. After examination by the permissible department, the trade name will be entered in the Commercial Register and have its Memorandum of Association printed in the Ministry of Economy Bulletin. The Municipality will then issue the license

The Municipality issues the license to practice the majority of the activities in Fujairah. However, certain activities require distinct approval from the related Ministry/Department: