Looking at Starting a Warehouse Business in Fujairah, UAE?
Contributed by PMC Solutions
30 January, 2020
FUJAIRAH is an emirate located in the east of the UAE.
Fujairah is an important business area, it's not only a popular tourist destination, but it's also an ideal business location as it delivers plenty of business opportunities.
Fujairah plays a major role in the economic diversification of the UAE.
Fujairah's key important attribute is the port of Fujairah, the only multi-faceted port on the eastern side of the UAE, and so most business owners are drawn to set up a UAE company.
Warehousing, however, is the most frequent issue faced by SMEs and companies during the initial stages of set-up.
Since warehouse is important for most companies, the government of Fujairah has provided excellent facilities to meet this particular need.
Below are some recommendations that will assure you of the advantages of establishing a warehousing company in Fujairah.
1. Essential commodity for Business:
For businesses, a warehouse is an absolute necessity, whether it's a big factory or a grocery store or even a retail store. A warehouse is required for businesses of all shapes, sizes, kinds or styles.
This requirement creates an attractive business opportunity in the warehouse industry. That is expected to be a success and make a considerable return for the investment.
2. Accommodating Free Zone:
A combination of geographical location, proximity to major shipping routes around the world, a modern maritime port and airport make the Fujairah Free Zone an ideal place for trade.
The Free Zone of Fujairah has grown tremendously with more than 2000 companies contributing to the Emirates' economy.
Textiles, jewelry, manufacturing, IT, heating and cooling systems, recycling, plastics and perfumes, as well as retail and service sectors are the main business sectors.
The Free Zone offers to the investors including but not limited to:
- 100% Foreign Ownership
- 100% repatriation of capital and profit
- Duty exemption
- Common Customs facility (with seaport and airport)
- No recruitment restrictions
- Single window clearance
- Real estate: office facility, warehouse and land
- Concept of virtual office
Facilities: Offered Warehouse/ Light Industrial Units, Office Units, Plot of land
Possible Legal Entities: Branch of a foreign company (including offshore company), Branch of a UAE company, Free Zone Establishment (FZE), Free Zone Establishment (FZE)
Types of licenses issued: Trading (Normal), General Trading, Professional / Service, Industrial, National Industrial
Activities allowed: Import, Export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, international business consultancy and different kind of services unless otherwise restricted by federal or local authorities
Visas: 4 visas for office unit. However, no restriction for industrial / assembly units operating in pre-built warehouse and leased land as required for the activity
3. Streamlined Business Process:
The UAE is a nation that seeks to make its own name as a progressive country with a dynamic and competitive economy.
The UAE government is creating possibilities and streamlines trade practices in order to accomplish this goal.
It involves the acquisition of business licenses and trade licenses, as companies in the UAE need licenses that are applicable to their specific field of work.
When you receive these licenses, you can execute your businesses successfully.
4. Expo 2020:
The UAE is hosting the largest exhibition in the world, Expo 2020: an occasion where trade, innovation, economics, entertainment and the political world will come together.
The international exhibition will draw more than 25 million visitors from 192 countries participating.
It is anticipated that the hotel, retail and manufacturing industries will also benefit from this Expo, which would also enhance the need for Warehouse business.
5. Smooth Business setup:
Business in a foreign land is undoubtedly challenging.
In fact, the methods for securing licenses and trading licenses are quite overwhelming. But the UAE government has made it fairly easy to set up business.
They have properly defined guidelines and procedures to effectively direct the beginner through the setup process.
Fujairah Free Zone can establish custom warehouses for investors subject to general guidelines for construction and Free Zone policy.
The lease term for land is subject to business nature and is negotiable.
Companies engaged in petrochemical, petroleum, education, development or any other specific segments will be given a special license with an annual license fee.
A business with various activities can receive multiple licenses and function under various names.
A piece of advice. When you intend to set up a business in Fujairah or Dubai, the simplest way to do that is to hire business set-up consultants essentially since they can make this process hassle-free.
PMC Solutions DMCC is one of the top ten business consultants in UAE. Since its establishment, it has partnered with hundreds of customers to help them set up their businesses across the UAE.
Upon knowing the customer requirements, our business advisors provide you with full personalized solutions.
We take care of the basic requirements from inception to the establishment of the core business foundations covering office space, accounting, auditing, taxes, etc.
If you have any questions or concerns, please contact us today-we would be happy to help.
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