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Tier 2 · Umm Al Quwain

Umm Al Quwain Free Trade Zone

Umm Al Quwain (Ahmed Bin Rashid Port area; second site on Sheikh Mohammed Bin Zayed Road) · Est. 1987 · UAQ Free Trade Zone Authority (UAQ FTZA)

AED 5,500/ yr
high confidenceVerified 18 Jul 2026official ↗
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Best for

Cost-sensitive founders, freelancers and micro-SMEs who want a genuine UAE free zone company with remote setup at minimum cost, and traders who benefit from designated-zone VAT treatment on goods.

Not ideal for

Businesses that need premium-bank relationships, large visa quotas without leasing offices, a prestigious Dubai address for client-facing sales, or direct mainland selling without a distributor.

01Capability profile

Six independent dimensions, scored from official zone data.

?
Banking4/15
?
Visa scale10/15
?
Cost (lower=better)18/20
?
Activity breadth12/25
?
Workspace options12/15
?
Location6/10
02Where UAQ FTZ sits

Tick marks for every zone, UAQ FTZ highlighted. The shape of the field, not just the rank.

Year 1 cost← lower is better

UAQ FTZ: 87th percentile (AED 5,500) · Licence + registration, AED.

Setup time← lower is better

UAQ FTZ: 92th percentile (3 days) · Total estimated days from application to operational.

Visa caphigher is better →

UAQ FTZ: 23th percentile (20 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.

Banking ease← better
Easy
4
Moderate
73
Difficult
15
Very difficult
1

UAQ FTZ: Very difficult · Corporate bank account opening difficulty. Each cell is one zone.

03Costs

Year-one license, renewals, and 5-year totals in AED.

5,500
Year 1 minimum · AED
AED 23,805 less than DMCC
budget tier
Show in
Base licence
AED 5,500
Registration
AED 0
Renewal (year 2+)
AED 5,500
3-year total
AED 16,500
2-year visa cost
AED 2,200
Hidden & one-off costs
Establishment card
AED 1,000
Minimum share capital
AED 300,000
Cancellation fee
AED 1,500
Visa renewal
AED 2,200
Visa cancellation
AED 2,000
Emirates ID (per visa)
AED 370
Dependent / spouse visa
AED 3,500
Year-on-year fee tracking begins 2026 — changes appear here as they accrue.
Indicative, from published ratesOfficial fee schedule ↗Verified 2026-07high confidence

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04Visas & workspace

Visa caps, workspace options, and family-sponsorship rules.

Visa allocation
Maximum visas
20
Flexi-desk cap
2
Office cap
6
Warehouse cap
10
Family sponsorship
Available
Freelancer permit
Available
Medical required
Yes
Processing time
~5 days
Workspace options
Virtual office
Yes
Flexi-desk
Yes
Coworking
Yes
Dedicated office
Yes
Executive office
Yes
Warehouse
Yes
Industrial unit
No
Land plot
Yes
Ejari issued
Yes
Parking
Yes
Dedicated office cost
AED 18,000/yr
05Banking & setup

Banking difficulty, partner banks, and setup timeline.

Banking
Difficulty
Very Difficult
Time to account
~45 days
Minimum deposit
AED 10,000
Corp tax rate
0%
Audit cost (est)
AED 3,000
UBO filing
Required
AML / KYC
standard
Partner banks
Wio BankNational Bank of Umm Al Quwain (NBQ)Emirates Development Bank (EDB)Ruya Bank / NBF
Setup timeline
  1. Registration mode
    Fully online — no in-person visit required
  2. Documents & application
    Passport, visa, business plan — ~3–5 days
  3. Licence issued
    ~1 business day after submission
  4. Bank account active
    Additional ~45 days · Very Difficult banking
  5. Operational
    Typically ~3 days, up to ~7 days
06Permitted activities

Activity categories, restrictions, and approval flags.

1500+ activitiesDual license: Yes

General trading

E-commerce

Freelance permits

Warehousing & light manufacturing

Industrial land development

Categories
Commercial/TradingConsultancy & ServicesIndustrial/ManufacturingFreelance (creative, media, digital, technical, education, wellness, professional)
Matched industry clusters
consultingtradingindustrial
Restricted
Activities against UAE public policy (e.g. gambling)Banking, insurance and other heavily regulated financial services require external regulator approvalsOil & gas exploration
Require approval
Regulated sectors (financial services, education, healthcare) need external approvals
07Jurisdiction & ecosystem

Legal framework, tax status, audit requirements, and zone focus — every value sourced.

Common lawNo
VAT designated zoneYes
QFZP eligible (0% tax)Yes
Inferred · 2026-07-18
Mainland permitYes
Inferred · 2026-07-18
Audit requiredNo
Inferred · 2026-07-18
Economic substancestandard
Inferred · 2026-07-18

This zone offers physical-office options sufficient for a standard QFZP substance posture, though the bar still applies at the entity level (CTGFZP1).

Focus: Trading & general trading, Logistics & warehousing, SME services & consultancy, Freelance/e-commerce, Light industrial/manufacturing

11000 companiesmedium communityNetworking events: YesIncubator: No
Notable companies

Rock Tech FZC, PTAL International FZC, Emirates Gas LLC

QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.

08Strengths & limitations

13 strengths · 4 caveats.

Strengths
  • ["Among the UAE's cheapest entry points: UAQ LYTE at AED 5
  • 500 and standard 0-visa licences from AED 8
  • 000"
  • 'Fast
  • fully remote incorporation (1-2 days claimed) with co-working + lease bundled into every package'
  • 'VAT designated zone (Cabinet Decision 59/2017) and 0% corporate tax for qualifying free zone persons'
  • 'All-inclusive visa packages (UAQ START AED 12
  • 500; freelance permit + visa at AED 1
  • 818/month) with medical
  • EID
  • insurance and establishment card bundled'
  • 'Broad facility range for a budget zone: offices from 9 sqm (6+ visas)
  • warehouses and leasable industrial land']
Caveats
  • ["Corporate banking is the zone's weak point: traditional-bank rejections are common and most SMEs rely on Wio or NBQ"
  • 'Small visa quotas on entry packages (0-2 with co-working; 6+ requires a dedicated office) and limited prestige of the Umm Al Quwain jurisdiction with clients/banks'
  • 'Nominal AED 300
  • 000 share capital on the licence (no proof of deposit required) can surprise founders reading the fine print']

Not ideal for: Businesses that need premium-bank relationships, large visa quotas without leasing offices, a prestigious Dubai address for client-facing sales, or direct mainland selling without a distributor.

09Tax considerations

5 tax questions relevant to this zone.

Questions to raise with your tax advisor

  1. Does your planned revenue qualify under the QFZP qualifying-income rules?

    QFZP 0% only applies to qualifying income. Mainland trading or revenue from non-free-zone clients is generally non-qualifying and taxed at 9%.

  2. Will you need audited accounts even if this zone doesn't require them?

    FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.

  3. Do your goods movements actually fall inside the VAT Designated Zone treatment?

    Designated Zone status applies to goods within the zone, not services. Most service businesses get no VAT benefit from being inside one.

  4. How much of your revenue will come from mainland UAE customers, and how does that affect QFZP and 5% VAT obligations?

    Mainland revenue beyond ad-hoc levels can disqualify QFZP and triggers full 9% corporate tax plus standard VAT on supplies.

  5. Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?

    Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.

These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.

10About this data

Last verified 2026-07-18 · high confidence.

UAQ FTZ data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.

Location
Umm Al Quwain (Ahmed Bin Rashid Port area; second site on Sheikh Mohammed Bin Zayed Road)
Established
1987
Authority
UAQ Free Trade Zone Authority (UAQ FTZA)
Last verified
2026-07-18
Confidence
high
Methodology
How we score →
Cited source
Fee data sourced from the official fee schedule, fetched 2026-07-18. View source ↗
Per-field citations
How we verify every zone →
11Founder reviews

What founders who've registered here say.

4.6★350 reviewsGoogle

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12Take the next step

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