Guide of Company formation in Umm Al Quwain by Prospr

How to Do Company Formation in Umm Al Quwain, Mainland Dubai?

Do you want to do business setup in UAQ Mainland? Interested to know what steps you need to follow? Well, you have hit the right spot. 

First of all, Mainland company formation in Umm Al Quwain is indeed a great choice. You can get government support and would be able to enjoy multiple inceptives, whether you set up a micro-business, an SME, business conglomerates, or a startup in Dubai.

Before Prospr shed light on complete guide of starting a company in Umm Al Quwain, Mainland, we would like to explain:

Benefits of mainland business setup in UAQ 

Here are some benefits you can enjoy of company formation in Umm Al Quwain Mainland.

  • No income tax, corporate tax, and capital gain tax.
  • You can repatriate funds, profits, and capital
  • There won’t any import/export duties
  • 100% foreign ownership 
  • No recruitment issues, you can hire foreigners and most talented workforce
  • Modern infrastructure
  • Cost-effective labor force
  • Liberal labor laws. 

Learn how to start a mainland company in Dubai?

Company formation in UAQ- what you need to know

Here is a complete process of opening a company in Umm al Quwain, Mainland:

Step 1- Determine economic activities

First thing you would do is to decide what kind of business activities you are going to get involved in UAQ. Before you finalize any activities, make sure you do some research to find out whether these activities are legal or illegal in UAQ. Besides, it’s always a good idea to conduct a market research to find out whether a business activity will provide required ROI for you or not.

Do you need market research in Dubai or all over the UAE?

It’s time to contact our expert market researchers at Prospr. Before you commit to any business in the long run, it’s always a good idea to avail services of professionals like us. This market research service will unlock a detailed feasibility report, which helps you decide whether to continue or consider another idea.

Prospr’s market research saves your time, money, and resources and helps you work on the most profitable business idea in Dubai. Call now and book a market research now!

Step 2- Decide about legal form

When it comes to starting a new a company in Mainland UAQ, you need to decide about legal form of your business. Choose form the following options:

  • Limited Liability Company /LLC
  • Branch office 
  • Public shareholding company
  • Private shareholding company
  • Holding company
  • Professional firm

Rules and regulations for every legal structure varies in Dubai. Thereby, you need to pick a specific legal form very carefully at this stage.

Step 3-Choose trade name

It’s another step that requires effort and time from your side. You need to pick a trade name that is unique and follows the naming conventions of UAE. It’s vital to pick a name that’s not available for other businesses in UAQ and the rest of the UAE. You can pick a trade name that is available in other parts of the world but it should be unique in UAE.

Step 4- Apply for trade license

You have decided the legal structure of your business and all the activities, now it’s time to get a specific trade license. Check different types of trade licenses in Dubai. Three types of trade licenses are pretty common in Umm Al Quwain mainland such as professional trade license, commercial trade license and industrial trade license. Make a choice based on your business activities. 

Step 5-Get initial approval

Get approval of your business from the Department of Economics in Umm Al Qain, Mainland. When you are filling out the application of this approval, make sure you provide the most accurate details. In case you miss any info or misrepresent yourself, it will delay the overall approval process. As a result, you will pay an additional fee. If you want to make this initial approval cost-effective, you need to remain careful while filling the application form. You can’t afford to miss this step of company formation in Umm Al Quwain. 

Depending on your business, you may seek additional approvals from external agencies or government bodies. For example, if you have a plan to set up some financial business in the UAQ mainland, you will have to get approval from the Ministry of Finance

The Department of Economic Development DED usually provides details of all additional or special approval you need to furnish during company setup in Mainland

Read the guide about offshore company formation in Dubai

Step 6-Draft Memorandum of Association

You will create a MoA or Memorandum of Association for your company. It is going to be a foundational corporate document. This document is mandatory for company registration in UAE. This MoA must be drafted and signed by owners, directors, partners/shareholders. It’s always a good idea to hire expert for drafting MoA.

 Do you need help drafting a memorandum of Association during business setup? Hire business consultants from Prospr. We will manage these and other official documents on your behalf.

Step 7-Choose office location

Another essential document for company formation in Umm Al Quwain, Mainland is lease agreement. You need to pick a specific location as per your business requirement and size. Sign a lease agreement and then provide this document to the Department of Economic Development in Umm Al Quwain. If you fail to furnish this document, your registration will be rejected by the government. 

Guide of Company formation in Umm Al Quwain by Prospr

Step 8-Get Trade license

It is the last step you need to follow for company formation in Umm Al Quwain. Once you have all required documents for company formation in Umm Al Quwain Mainland, you need to submit them, pay the fee and fill the trade license application.

After the DED review your application, they will approve your license. Collect your license from authorities and then start conducting your business activities in UAQ, Mainland.

Documents you need for Mainland company formation in Umm Al Quwain

  • Copies of owner’s valid passport and lease agreement
  • Property certificate (if any)
  • A copy of Business plan 
  • Partnership contract
  • Attested copy of Memorandum of Association
  • If a shareholder is an Emirates, provide a copy of shareholder’s national ID
  • When an owner is expat, provide NOC alongside a copy of visa and residence

What is the main industry of Umm al Quwain?

If you are planning to set up a company in Umm al Quwain, you need to consider to start a business in tourism, hotel, parks, manufacturing, and fisheries industries.

How much is the license fee for Umm al Quwain?

You need to pay AED 10,000 to AED 15,000 for getting a commercial trade license in UAQ while the cost of an industrial license ranges from AED 15,000 to AED 25,00. 

Learn how to set up event management companies in Dubai

Wrap up

Finally, you know what steps you need to follow for company formation in Umm al Quwain, Mainland. The whole process is time consuming and somewhat challenging. 

So, if you want to make the process less-challenging and somewhat delightful, get  help from experts, you can always count on the leading business consultants of Dubai at Prospr. We have 10 years of company formation experience in Mainland. Thereby, we can make the whole process hassle-free for you.

Call now

Picture of Samad Ahmed

Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.

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