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Umm Al Quwain Free Zone License Cost Guide 2025 | Start Your UAE Business Affordably

by Srija Manda Jul 23, 2025 8 MIN READ

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Umm Al Quwain Free Zone License Cost

This comprehensive 2025 guide provides an in-depth look at the Umm Al Quwain Free Trade Zone (UAQ FTZ), offering one of the most cost-effective ways to establish your business in the UAE.

Discover the latest license fees, available license types, and the step-by-step procedure for company registration.

We’ll also explore the key benefits of setting up in UAQ, compare it to other UAE free zones like Sharjah Media City (Shams), Dubai Multi Commodities Centre (DMCC), and IFZA Dubai, and answer common questions for new entrepreneurs.

Learn how Arnifi can streamline your business setup for a faster, easier, and fully compliant process.

Why UAE Free Zones Attract Entrepreneurs

The UAE has become a global hotspot for business owners and startups, largely due to its Free Zones. These specialized business-oriented zones allow foreign entrepreneurs to establish 100% owned companies without needing a local sponsor.

Among them, the Umm Al Quwain Free Trade Zone (UAQ FTZ) stands out for being affordable, easy, and flexible. If you’re a small business owner, freelancer, or entrepreneur looking to enter the UAE market on a budget, UAQ FTZ should be a top consideration.

Here, we’ll delve into UAQ Free Zone license costs for 2025, license types, top benefits, and a how-to guide to get started.

We’ll also cover additional fees, answer common questions, and explain how Arnifi can help streamline the entire process.

Thousands of businesses are choosing UAQ Free Zone for several compelling reasons:

  • Strategic Location: Just a short drive from Dubai and Sharjah, Umm Al Quwain Free Zone offers fast access to major ports and airports, making it ideal for trading and logistics companies.
  • 100% Foreign Ownership: Unlike mainland setups, you don’t need a local partner. You can fully own your business and repatriate profits without restrictions.
  • Tax-Free Business Environment: Enjoy no corporate or personal income tax, and no customs duties on re-exports.
  • Fast Company Setup: UAQ Free Zone boasts one of the simplest and quickest business setup processes in the UAE.

Types of Licenses in UAQ Free Zone

UAQ Free Zone offers various license types to suit different business needs:

License TypeWho It’s For
Commercial LicenseFor buying and selling goods, trading, and import/export businesses.
General Trading LicenseFor businesses trading in a wider range of products.
Consultancy/Service LicenseFor professionals offering services like marketing, HR, IT consulting, etc.
Industrial LicenseFor manufacturing, packaging, and production companies.
Freelance PermitFor solo professionals like designers, writers, and consultants. (UAQ freelance license cost is competitive).

Each license allows you to operate legally in the UAE, open a business bank account, and apply for residence visas.

UAQ Free Zone License Costs: 2025 Breakdown

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Here’s the latest cost breakdown for 2025:

License TypeStarting Cost (AED)Visa EligibilityNotes
Freelance Permit8,0001 visaBest for independent professionals.
Micro Business (0 visa)8,0000 visasFor startups that don’t need staff visas.
Startup Package (2 visas)13,5002 visasIdeal for small teams.
General Trading License20,5002–3 visasFor companies trading multiple goods.
Premium Standard32,5004 visasFor expanding businesses.
All-inclusive Packages4,949–12,5000–1 visaBundle deals with license + visa. (How much does a small business license cost in Dubai is often higher).

Comparison with Other UAE Free Zones

Free ZoneStarting Cost (AED)
UAQ FTZ8,000
Sharjah Media City (Shams)11,500
Dubai Multi Commodities Centre (DMCC)30,000+
IFZA Dubai12,900

As evident, UAQ Free Zone is one of the most affordable options in the UAE, especially for startups and small businesses. For example, the srtip free zone license cost might differ, highlighting UAQ’s competitive edge.

Note on Additional Costs

Additional costs to consider include:

  • Visa processing charge: AED 1500 to AED 2500 per visa.
  • E-channel registration charge: AED 2150 to AED 2400 (one-time).
  • Office space rental: Both Flexi-desk and warehouse prices vary by size.
  • Annual renewal: Almost the same as the initial license fee.
  • Optional Pro Services: Help with administrative tasks, customs setup, etc.

Key Benefits of UAQ Free Zone License

  • Lowest setup costs among UAE Free Zones.
  • Flexible packages (freelancers, startups, larger businesses).
  • Dual licensing options: Combine consultancy and trading under one license.
  • No currency restrictions: Send profits back home anytime.
  • No corporate or personal taxes.
  • No local partner required.
  • Access to ports and airports for trade and logistics.

Whether you’re a solo consultant or a trading company, UAQ FTZ provides an easy path to starting a business in the UAE.

What’s Included in the License Packages?

When you acquire a UAQ Free Zone license, you typically receive:

  • Trade License (Commercial, Service, Industrial, or Freelance).
  • Establishment Card (for visa processing).
  • Flexi-Desk Access (shared workspace options).
  • Visa Quota (depends on package).
  • Company Registration Support.

With these benefits, you’re ready to legally operate, hire staff, and open corporate bank accounts.

Step-by-Step: How to Obtain a UAQ Free Zone License

Here’s how the process works:

  1. Choose Your Business Activities: Select the activities you want to include under your license. This is crucial whether you’re looking for a general trade license in Umm Al Quwain or a specialized one. The types of business licenses in Dubai are extensive, and UAQ offers a streamlined alternative.
  2. Pick a License Package: Decide between freelance, micro, startup, or premium.
  3. Submit Your Application: Provide passport copies, ID photos, proof of address, and the application form.
  4. Pay Fees: Settle the license fee and any visa-related costs.
  5. Receive Your Documents: You’ll get your trade license, establishment card, and registration certificates.
  6. Apply for Visas and Open a Bank Account: Once licensed, you can start hiring and set up a corporate bank account. This is a key step often discussed alongside “How to open business bank account in Dubai without trade license,” though a UAQ FTZ license facilitates the process.

Additional Costs & Fees to Consider

Besides the license itself, budget for:

  • Visa Processing: AED 1500 to AED 2500 per visa.
  • E-channel registration charge: AED 2150 to AED 2400 (refundable deposit may apply).
  • Office rental: Optional but available for those requiring warehouses or private offices.
  • Renewals: Normally, yearly renewals will roughly cost the initial cost.
  • Optional Pro Services: Help with administrative tasks, customs setup, etc.

Frequently Asked Questions

Q: Can I set up a company remotely?

A: Yes, UAQ Free Zone allows 100% remote company setup. No need to be physically present to start. (How to get virtual business license in Dubai is a related query, and UAQ facilitates this.).

Q: Are there restrictions on local businesses?

A: Free Zone companies cannot trade directly with the UAE mainland without using a local distributor. This is a common point of inquiry similar to “How to get import export business license in Dubai.”

Q: How long does setup take?

A: Most companies are registered within 3-5 working days. This speed is often compared to “How long does it take to get a business license in Dubai?

Q: Can I upgrade my license later?

A: Yes, you can upgrade or downgrade your visa quota and license type anytime.

Q: Is there a minimum share capital required?

A: No physical capital deposit is required in UAQ Free Zone.

Q: Are renewals easy?

A: Yes, the renewal process is straightforward and usually done online.

Conclusion: UAQ Free Zone – An Affordable Launchpad for Entrepreneurs!

An ideal choice among the Free Zones to set up your company on a limited budget and with flexibility. Small-scale businesses, startups, and foreign entrepreneurs would find UAQ Free Zone perfect for getting the cheapest, fastest setups with multiple license options.

At Arnifi, we help businesses like yours set up in UAE Free Zones quickly and with full compliance. From license registration through visas and payroll support, we will be your trusted partner throughout the entire process.

Ready to make a start?

Visit arnifi.com, book a consultation, and get your customized UAQ Free Zone quote today.

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