General trade license is a mandatory requirement for every business entity in Fujairah. Due to a favorable business environment, many entrepreneurs are looking forward for starting a new business in Fujairah. The requirements of acquiring general trade license and approvals from various agencies and government ministries can vary depending on the category of the business.
There are two main areas to set up business in Fujairah:
Advantages of acquiring general trade license in Fujairah
A fortunate combination of geographic location with world wide access to major shipping routes is an advantage to investors to start a business in this emirate. Acquiring general trade license in Fujairah can provide with few of advantages such as:
- No currency restrictions
- No mandatory yearly auditing
- Tax free jurisdiction
- Easy access to visas for employees
- No limit on number of activities
- Zero capital requirements
Types of entities in Fujairah
General Partnership Company:
It is a firm which consists of two or more partners who are jointly and severally responsible for all the liabilities of firm. Such partnership companies are restricted to UAE nationals only because partners are responsible towards the liabilities of the firm by all their assets, which may not apply to foreigners.
Partnership in-commend am (Limited Partnership)
It is a firm consisting of one joint partner or more who is liable with all his liabilities for the firm and another in commend am partner or more who may not be responsible for the liabilities of the firm except to the value of his share in the capital. The joint partner may be a UAE national as per law.
Public Shareholding Company
Public Shareholding Company is a company which has a capital divided into equal negotiable shares. In such companies a shareholder’s liability is limited by the number of shares held by him
Steps to acquire general trading license in Fujairah
Step 1: Deciding the trade name
Obtaining initial approval of name and activity from Fujairah municipality
Step 2: Special approvals
Obtaining special approvals from relevant authority in case the activity is special in nature.
Step 3: Apply for trade license
After obtaining all the approvals required person can apply for license depending on the activity carried out by the organization.
Step 4: Choosing an office location
Decide a business location and get tenancy contract.
Step 5: Initial approval
An initial approval certificate is required to continue with the business licensing formalities that permit foreign nationals to practice their desired business activity in Fujairah. The Initial approval entitles the investor to proceed ahead with legal procedures for obtaining the business license, and apply for obtaining required approvals of relevant authorities to practice economic activities.
Step 6: Submitting of documents
Arrange all the required documents like Memorandum of association and all approved documents from relevant authorities.
Step 7: Licensing process
If all the documents are submitted and verified, the required authority will issue the license and start the visa processing. After making requisite payment a license will be issued for carrying the trading activities.
- A license application signed by company managers or legal representatives
- Proof of trademark reservation
- Proof of initial approval signed by required parties
- Personal information of each shareholder ad manager
- General trading license fees
- Incorporation fees
- Trade name reservation fees
- Initial approval fees
- One trading license fee
- Two trading license fees
All the cost of government and required documents are an estimation. The exact cost will be determined at the time of submission of applications.
Acquiring a general trading license can be of immense advantage to businessman. Once you decide to set up a company in Fujairah, you have to go through all the rules and regulations to avoid undesirables’ hurdles. To make things simpler on getting general trading license in Fujairah, we at FAR Consulting have advisors who can help you through the whole process. If you are looking to set up a business in Fujairah do contact us for further enquiries.