Mainland Business Setup in Umm Al Quwain
Umm al Quwain mainland is one of the best trading choices in the United Arab Emirates. There are several benefits to operating within the Umm al Quwain Mainland and procedure for Mainland business formation is discussed below:
Mainland Business Setup in Umm Al Quwain
Types of Mainland Business in Umm al Quwain:
- Limited Liability company
- Public Shareholding company
- Branch office
- Representative office
- Professional firm
Branch of Foreign Office:
In Umm Al Quwain, the branch office is an extension of the international parent company. The branch office must also receive a trade license for the same practices which are carried out by its parent company.
Limited Liability Company (LLC):
It is one of the most common forms of business entities, an LCC can be incorporated with the participation of at least 2 shareholders and the maximum number is 50 shareholders. The percentage of liability that each partner must bear depends on the ratio of individual shareholding.
Professional Firms are committed to a particular profession for carrying out their domain-related professional practice. Unlike an LLC, this type of firm does not have a 51 percent shareholding limit.
- Public Shareholding Companies
Public Shareholding Companies perform public shareholding, financial and banking, insurance activities. For the establishment process for public shareholding companies, the minimum capital required is US$ 2,725 million and is appropriate for larger projects.
- Representative Office
Umm Al Quwain, allows foreign investors to establish a representative office without any shareholder in presence. A representative office is not involved in the daily activities of companies and is more geared towards the promotion of marketing activities and research.
Documents Required for Umm Al Quwain:
- A valid copy of passport and national ID in case of shareholders if he is a UAE national.
- A no-objection certificate, copy of passport, copy of visa or residence is required in case of ex-pat partners.
- License form duly filled.
- Branding certificate is required.
- In case of technical assessment is required than a report must be submitted.
- A Contract of partnership duly attested by a notary is required.
- A Lease copy shall be obtained.
- Legal affairs approval shall be obtained.
- Property certificate if available.
- Authenticated copy of the MOA and AOA of the company.
- A copy of the feasibility study on the business venture is required.
Available License in Umm al Quwain:
- Commercial license permits holder to engage in buying and/or selling activities or provide specific services
- Professional license authorizes skilled professionals in providing non-physical services e.g. consulting and advisory services;
- Industrial license enables an organization to perform industrial operations in compliance with both local and national manufacturing laws.
Procedure for formation of Business in Umm Al Quwain:
- Firstly, a Local Sponsor needs to be appointed in Umm Al Quwain.
- Then it is important to determine the type of economic activity and legal form of the business.
- After that, Submission of the application form to the company registration.
- Submission of company name to the Department of Economic Development (DED) in Umm Al Quwain.
- Obtaining a trade license by submitting the company's documents to the DED and Chamber of Commerce and Industry in UAQ.
- Then Companies Memorandum of Association (MOA) shall be notarized.
- Then registration of trade name is required.
- Then get initial approval and special approvals.
- The Sign the lease agreement and MOA in public notary.
- For location and inspection approval or municipality shall be obtained.
- After that, the licensing requirements shall be fulfilled.
- The trade license shall be issued by paying the license fees.
- Getting approval from Name Board and for the employees from the Ministry of Labour in UAQ.
- Lastly getting a stamp on Visa from the Immigration Department in UAQ.
Advantages of Mainland Business setup in Umm al Quwain:
- It Allows foreign ownership for Umm al Quwain mainland-based businesses.
- There are opportunities to set up offices/branches anywhere in UAQ’s mainland;
- Plenty of options for business activities are allowed in UAQ mainland.
- UAQ mainland has an Investor-friendly climate.
- There is an ease of conducting business and flexibility in UAQ.
- Office space leasing options and warehouse is cost-effective.
- There are excellent growth opportunities in UAQ mainland.