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Start Your Business in Umm Al Quwain (UAQ) Free Zone | Low-Cost UAE Setup

by Shethana Jul 23, 2025 8 MIN READ

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Most of us are familiar with business in Dubai, but not much about the other free zones. One among such places is Umm Al Quwain, which is more focused on keeping costs down and still wants all the perks of doing business in the UAE. There’s a smart alternative, Umm Al Quwain Free Zone (UAQ FTZ).

Tucked between Sharjah and Ras Al Khaimah, this zone offers one of the most budget-friendly license setups in the country. And it’s not just cheap, it’s flexible, legit, and surprisingly efficient.

This article will walk you through what UAQ Free Zone is all about – license types, updated costing, what’s included, how to apply, and other things you’ll want to know before taking the plunge. If you’re trying to set up a business in the UAE without blowing through your savings, keep reading.

Benefits of Choosing UAQ Free Zone?
Types of Licenses in UAQ Free Zone
Application Process Flow & Breakdown
Compliance, Renewal & Expansion | What to Expect?
Why UAQ Free Zone Appeals to Dubai-Based Entrepreneurs?
Conclusion

Benefits of Choosing UAQ Free Zone?

Let’s be honest, setting up a company in Dubai sounds great until you see the costs. That’s where UAQ Free Zone flips the script.

It’s just under an hour from Dubai, close to Sharjah, and near major ports and airports. So you still get the logistical advantages without the premium pricing.

But the real win? You keep 100% ownership, there’s no corporate tax, and all your profits are yours to repatriate. No currency barriers. No local sponsor drama.

Setting up a company here doesn’t take weeks. In most cases, you’re up and running in just a few days. And because the free zone caters to both solo freelancers and established businesses, there’s a license type that fits whatever stage you’re at.

In short, UAQ FTZ is for people who want less red tape and more room to grow, without draining their funds.

Types of Licenses in UAQ Free Zone

The good thing about UAQ Free Zone is that it doesn’t force you into a one-size-fits-all setup. Whether you’re freelancing solo or running a trading business, there’s a license that fits.

Here’s a breakdown of what’s on offer:

Commercial License

This one covers trading activities, buying and selling goods, imports, exports, and distribution. It’s a solid pick if you’re dealing with physical products.

General Trading License

Think of this as an upgraded version of the commercial license. You can trade multiple, unrelated items under one roof. Great for businesses that deal in mixed product lines or run ecommerce stores.

Consultancy/Service License

Perfect for professionals offering knowledge-based services, think consultants, creatives, IT professionals, or anyone providing expertise rather than physical goods.

Industrial License

This is for light manufacturing, packaging, or industrial activities. You’ll need a facility or warehouse, so it’s more hands-on and space-driven.

Freelance Permit

Ideal for solo workers, designers, developers, writers, and fitness coaches. It’s low-cost and gets you legal, fast.

Each license comes with its own visa options and document requirements, but the setup process is straightforward across the board.

The takeaway? Whether you’re selling products, services, or just working for yourself, you’ll find a license that fits you, not the other way around.

Application Process Flow & Breakdown

Let’s talk money.

Here’s what you’re looking at in terms of license packages for 2025:

License Type	Starting Cost (AED)	Visa Options	Good For
Freelance Permit	8,000	1 visa	Solo professionals
Micro Business	8,000	0 visa	One-person startups
Startup Package	13,500	2 visas	New small businesses
General Trading	20,500	2–3 visas	Multi-product traders
Premium Standard	32,500	4 visas	Small teams or growing operations
All-Inclusive Bundles	4,949 – 12,500	0–1 visa	Package deals with visa and workspace

What makes this different from zones like Dubai South or DMCC? For starters, those zones start higher, AED 15K and up, sometimes without visas or office space included. In UAQ, you can get both a license and visa access starting under 5K AED in some bundles.

But there are a few extra costs to keep in mind:

Visa costs: usually between AED 1,500 to 2,500 per person
E-channel registration: AED 2,150 to 2,400 (some include a refundable deposit)
Office or warehouse space: Only needed for industrial licenses or bigger setups

Even with those add-ons, you’re still paying much less than in other UAE free zones. It’s one of the reasons UAQ is a favourite for first-time founders, freelancers, and lean startups.

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Compliance, Renewal & Expansion | What to Expect?

Running a business in the UAE comes with a few responsibilities, but UAQ Free Zone keeps it manageable. Here’s what you need to keep in mind once you’re up and running:

Annual Renewal
Your trade license needs to be renewed every year. The process is simple—pay your renewal fee, submit updated documents if needed, and that’s it. Most businesses complete this in a day or two.
Changing or Expanding Activities
Want to add new services or products to your business license? You can. Just apply for an activity change, and UAQ FTZ will review and approve it based on their activity list.
Adding Visas Later
If you start with a zero-visa license and need to bring on staff later, you’re not stuck. You can upgrade your package and increase your visa quota when you’re ready.
Dual Licensing
UAQ Free Zone allows certain businesses to combine activities, like trading and consultancy, under a single license. This isn’t common in all zones and gives you more flexibility to diversify without opening a second company.

Why UAQ Free Zone Appeals to Dubai-Based Entrepreneurs?

It might sound odd at first, but why would someone based in Dubai register their company in a smaller emirate like UAQ?

Simple: cost and convenience.

Massive Cost Savings
Dubai free zone licenses often start around AED 15,000–20,000. In UAQ, you can get started for as little as AED 4,949. That’s a huge difference, especially for solo founders or early-stage startups.
Close to Dubai
UAQ is less than an hour’s drive from most of Dubai. So if you ever need to visit your flexi-desk or meet someone at the Free Zone office, it’s not a big commute.
No Need to Be There Physically
Most of the registration, document submission, and approvals can be done completely online. Even the trade license and establishment card can be issued digitally.
Low Capital Entry
There’s no hefty capital requirement to get started. That’s one less thing to worry about when launching on a lean budget.
Flexible Government Approach
UAQ is known for being more open to mixed-license requests, dual activities, and practical solutions, especially for consultants and freelancers.
Online Portal Support
Their online portal lets you handle renewals, approvals, and updates without having to queue at a government office. If you’re used to doing business on the go, this matters.

Conclusion

UAQ freezone business setup is comparatively easy, and the best freezone for a budget-friendly start. This location is easy and fast to set up, and offers all the key benefits, which are similar to other free zones. 100% ownership, tax exemptions, visa options, and flexibility to grow. And unlike other zones, UAQ keeps things lean. You only pay for what you actually need.

UAQ free zone provides you freedom to build and expand your business, whether you’re a freelancer or a start-up figuring out your base, this is the best location. If you’re still figuring out ways and confused with the process, talk you our experts at Arnifi to get better clarity. Get a free consultation now!

No stress. No guesswork. Just a setup that fits your goals.

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