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Doing Business in Fujairah
Like other emirates, before 1984, Fujairah also followed its own procedures governing the operations of foreign business 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 issued. The law makes it conditional that the companies be wholly owned by nationals or that nationals own at least 51% of its share capital, while the remaining 49% may belong to foreigners. The law provides that commercial companies established in the U.A.E must take any of the following legal forms:
1. General Partnership Company:
It is a firm which consists of two or more partners who are jointly and severally responsible for all the firm’s liabilities. Partnership companies are confined to UAEnationals only because partners are responsible towards the liabilities of the firm by all their assets, which may not applied to foreigners as in most of the cases their assets are usually in abroad.
2. Partnership in-commendam (Limited Partnership)
It is a firm consisting of one joint partner or more who is liable with all his monies for the firm and another in-commendam partner or more who shall not be responsible for the liabilities of the firm except to the value of his share in the capital. According to law, all joint partners in such type of firms should be nationals of the UAE.
3. Public Shareholding Company (PJSC)
Public Shareholding Company is a company with a capital divided into equal negotiable shares. In such companies a shareholder’s liability is limited by the number of shares held by him. Minimum capital required to form a Public Shareholding Company is AED10 million (US$ 2,724,796) with a nominal face value of AED 1 – 100, and for a banking entity it is AED40 million and insurance and investment companies is AED25 million. Among the other requirements for the establishment of a public joint stock company is the preparation of a founders’ agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditor’s certificate, a due diligence survey, a memorandum and articles of association. A PJSCmust have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. The Chairman and majority of the Directors in a public shareholding company must be UAEnationals. In addition at least 51% of the shares of the PJSCshould be held by UAEnationals. The founder members may only hold 45% of the share capital, as 55% is required to be offered to the public. The Law stipulates that the companies engaged in banking, insurance or financial activities should be run as public share holding companies.
Under UAE law, foreign entities interested in establishing a formal presence in the UAE have five options: create a permanent establishment, of which there are seven different types; establish a branch office; create an entity in a UAE free zone; create a civil company.
The UAE Commercial Companies Law (CCL) requires that each company established in the UAE has one or more UAE national partners who hold at least 51 per cent of the company's capital. Companies that undertake certain activities (oil industry, production of electricity and gas, treatment and distribution of water) are exempt from the 51 per cent requirement. Companies established in free zones are also exempt from the 51 per cent requirement, if the relevant free zone has special provisions regulating the company. Foreign banks are exempt from having to appoint a sponsor.
Fujairah Chamber of Commerce, Industry & AgricultureThe Chamber of Commerce is an invaluable source of information and assistance for anyone intending to do business in the Emirate of Fujairah. They keep investment databases, issue and authenticate licenses and other documentation, arbitrate on disputes and provide business facilities, such as meeting and conference rooms.
The Fujairah Free Zone AuthorityThe Free Zone offers excellent connectivity, to the world; by air through Fujairah International Airport, by sea - through the multipurpose Port of Fujairah, and by road to all major cities of GCC, West Asia and beyond.
Establishing a Business Entity in the Fujairah Free Zone gives you the following advantages.
Fujairah Creative CityThe Fujairah Creative City provides a complete one-stop solution for individuals and businesses. In addition to simplifying the process of obtaining of company licenses and visas, Creative City helps each client choose their preferred business packages based on individual needs and requirements. Attractive business packages with flexible payment plans are available. Virtual offices include prestige addresses, great facilities, professional assistant and pro services, virtual services and much more. Moreover, there is a wide range of additional business services available in Creative City business centres. Creative City offices are conveniently located in Dubai, next to Mall of the Emirates, easily accessible from Sheikh Zayed Road, and on the main road of Fujairah, Hammad bin Abdalla Street. Get in touch with us today and learn about the benefits of establishing your business with Creative City.
Services Includes: - Trade license. - Visa service. - Flexi office desks can be rented for use on an hourly, daily or weekly basis.
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