UAQ Free Zone (Umm Al Quwain Free Trade Zone) in 2026: Packages, Licences, Visas and Costs

The UAQ Free Zone — officially Umm Al Quwain Free Trade Zone (UAQ FTZ) — has become one of the go-to places for founders who want a UAE company and residence visa without Dubai prices. This guide is for freelancers, consultants, e-commerce sellers and small traders comparing low-cost free zones. You'll see the packages UAQ FTZ itself publishes and exactly what they include, the licence types, company forms, what the "flexi desk" really is in UAQ, visas, offices, warehouses and land, corporate tax, and an honest comparison with Ajman and Hamriyah.

Quick answer

UAQ FTZ is a government free zone in Umm Al Quwain, about 45 km from Dubai. Its official UAQ Start package costs AED 12,500 for a licence with up to 10 activities, one investor visa, Emirates ID, medical test, basic insurance and a co-working desk; a freelance permit with visa is AED 9,999 (both read 7 October 2026). Setup is remote and the licence is usually issued in a working day.

• Company forms: FZE (1 shareholder), FZC (2–50), or a branch

• Shared workstation included in every package — the minimum facility to register

• Land from AED 18 per sq m a year, minimum 2,500 sq m, leases up to 25 years

• Residence visas valid for 2 years

• Designated zone; corporate tax registration required within 3 months

What UAQ Free Trade Zone is

Umm Al Quwain Free Trade Zone began in 1987 as the Ahmed Bin Rashid Port and Free Zone, set up to support the emirate's port. Since 2018 the port has been run by Hutchison Ports and is known as Hutchison Ports UAQ — a four-berth facility with an 845-metre quay that handles containers, general cargo, Ro-Ro and bulk cargo in the northern UAE. The free zone's main business centre sits on Sheikh Mohammed Bin Zayed Road (the E311), the long highway linking Umm Al Quwain with Sharjah, Dubai and Abu Dhabi, about 30 minutes' drive from Dubai International Airport.

UAQ FTZ operates as a free zone authority under the Government of Umm Al Quwain rather than as a private operator. Its official package pages put the community at more than 11,000 registered businesses from over 160 nationalities, and it lists more than 1,500 business activities.

Both UAQ FTZ locations — at Ahmed Bin Rashid Port and on Sheikh Mohammed Bin Zayed Road — appear in Cabinet Decision No. 59 of 2017 as designated zones, which matters for VAT on goods and for the 0% corporate tax rules on distribution (see below).

The pitch is low cost. Umm Al Quwain is the UAE's smallest emirate by population, with lower rents and living costs than Dubai, and UAQ FTZ prices its packages to match. The trade-off is distance from Dubai clients and a quieter local market.

UAQ FTZ packages as published

UAQ FTZ publishes two headline packages on its official package pages. Prices below were read on 7 October 2026; the pages aren't dated, so confirm before you pay.

UAQ FTZ official packages (read 7 October 2026)

	UAQ Start	UAQ Freelance
Price	AED 12,500	AED 9,999
What you get	Company licence	Freelance permit in your own name
Activities	up to 10 activities	2 related freelance activities
Visa	1 UAE investor visa	1 residence visa
Emirates ID, medical, basic insurance	Included	Included
Workspace	Co-working space with lease agreement	Co-working access with lease agreement
Shareholders	Up to 5 (50 where applicable)	Individual only
Bank account help	Assistance included	Value-added services incl. bank assistance

Price

UAQ Start

AED 12,500

UAQ Freelance

AED 9,999

What you get

UAQ Start

Company licence

UAQ Freelance

Freelance permit in your own name

Activities

UAQ Start

up to 10 activities

UAQ Freelance

2 related freelance activities

Visa

UAQ Start

1 UAE investor visa

UAQ Freelance

1 residence visa

Emirates ID, medical, basic insurance

UAQ Start

Included

UAQ Freelance

Included

Workspace

UAQ Start

Co-working space with lease agreement

UAQ Freelance

Co-working access with lease agreement

Shareholders

UAQ Start

Up to 5 (50 where applicable)

UAQ Freelance

Individual only

Bank account help

UAQ Start

Assistance included

UAQ Freelance

Value-added services incl. bank assistance

UAQ FTZ says the UAQ Start package renews at the same package cost — useful, since many low-cost zones advertise a first-year promotion and charge more at renewal. It also says changes to the package, extra visas, activity amendments or new services may be charged separately. Additional investor visas, a bigger office and more activities can be added at renewal or mid-term.

What isn't in either package: the corporate tax and VAT compliance you'll need to handle (registration is free, but accounting isn't), dependants' visas, any extra visas, and the cost of travelling to the UAE for the medical test and biometrics. If you need a general trading licence, a premium activity or an industrial licence with a warehouse, you'll need a custom quote.

A worked first-year comparison

Consider two people setting up in 2026:

• Aisha, a freelance graphic designer, takes the freelance permit at AED 9,999. She gets two related activities — say, graphic design and illustration — and a residence visa in her own name. Her budget also needs flights for the visa medical and biometrics, and bookkeeping.
• Ravi, an e-commerce seller importing homewares, takes UAQ Start at AED 12,500. He picks up to ten activities, holds the investor visa as shareholder and gets bank-account assistance. If he adds his business partner as a second visa holder in year two, that visa is an extra charge.

Both should budget roughly the same again for running costs — bookkeeping, a corporate tax return, possibly VAT registration if sales pass AED 375,000, and health insurance beyond the basic cover. That's an estimate based on the items packages exclude, not a UAQ FTZ figure.

Licence types at UAQ FTZ

UAQ FTZ issues commercial, service (consultancy), industrial and freelance licences, with more than 1,500 activities to choose from.

UAQ FTZ also allows a dual licence: a company with a commercial licence can add a consultancy or service licence in the same entity, rather than forming a second company. Licences are valid for at least one year, multi-year licences are available, and you can amend activities during the licence term.

The freelance permit is aimed at technology, media, film and creative professionals, plus selected administrative roles. UAQ FTZ says permit holders can sponsor dependants — a spouse, children, parents and domestic workers — and that physical presence isn't needed to apply for the permit itself.

Company forms and capital

Every UAQ FTZ entity is a limited liability company, and each must have a natural person as manager, director and secretary. You can set up:

• a Free Zone Establishment (FZE) with a single shareholder;
• a Free Zone Company (FZC) with two to 50 shareholders; or
• a branch of an existing company.

UAQ FTZ states a minimum capital of AED 300,000, with a share value of AED 1,000 — but also says no proof of start-up capital is required. In practice the capital figure appears in your constitutional documents rather than being paid into an account at setup. Understand that this is the share capital you're declaring and that shareholders' liability is limited to it.

Setup can be done remotely from anywhere in the world. The licence is the quick part; the residence visa requires you to come to the UAE for the medical test, biometrics and stamping.

Setting up in UAQ FTZ (2026)

1. 1

   Choose your activities and licence

   Check that your activities are on UAQ FTZ's list and decide on commercial, service, industrial or a freelance permit — and whether UAQ Start or the freelance package fits.

   UAQ FTZ licensing services
2. 2

   Submit details and documents

   Send your enquiry and passport copies, photo and application form. For a corporate shareholder, add attested incorporation documents and a board resolution.

   Tip: Check passport validity for every shareholder and manager first — an expiring passport stalls the visa stage.

3. 3

   Confirm the activity and pay

   A UAQ FTZ adviser confirms the activity classification, package fit and documents. Pay the package or quoted fee.

4. 4

   Receive your licence

   UAQ FTZ says the licence is typically issued within one working day once documents and payment are complete.

5. 5

   Complete the visa

   Enter the UAE on the entry permit, do the medical test and biometrics, receive your Emirates ID and residence visa (valid 2 years).

6. 6

   Open a bank account and register for tax

   Use the bank-account assistance, then register for corporate tax within 3 months of incorporation.

Flexi desk, offices, warehouses and land

People searching for a "UAQ free zone flexi desk" are usually after the cheapest workspace that still satisfies the lease requirement. In UAQ FTZ terms that's the shared workstation or co-working space: UAQ FTZ says all its packages include a shared workstation, because it is the minimum requirement for registering a company. You don't pay separately for it on UAQ Start or the freelance package.

If you outgrow the desk, UAQ FTZ leases:

• Independent offices from 9 sq m, ready to move into or as shell-and-core space, with meeting rooms, a business lounge and 24-hour security. UAQ FTZ says visa options depend on the space.
• Pre-built warehouses fitted with office space, with road access and heat-insulated roofs and doors, for storage and light manufacturing.
• Land plots from 2,500 sq m upward for building your own factory, warehouse, showroom or offices, on leases of up to 25 years (renewable), with annual rent from AED 18 per sq m a year depending on plot size. Plots have direct access to the E311, with labour accommodation within walking distance.

The land rent is one of the lowest published in the UAE. A minimum 2,500 sq m plot at AED 18 per sq m a year is AED 45,000 a year in rent. By comparison, Jebel Ali Free Zone publishes land from AED 40 per sq m with a 5,000 sq m minimum — at least AED 200,000 a year (see our JAFZA guide). Building costs are on top of either.

Visas and dependants

UAQ FTZ processes residence and work visas for investors and employees, valid for 2 years. Both official packages include one visa. Additional visas depend on your facility and are quoted separately. The visa route is the usual UAE sequence: entry permit, status change if you're already in the country, medical fitness test, Emirates ID biometrics and visa stamping.

UAQ FTZ also helps visa holders sponsor dependants — spouse, children, parents and domestic workers — handling the paperwork, medicals, Emirates ID and stamping. Sponsoring family depends on UAE immigration rules, salary requirements and documents, so check your eligibility before promising your family a move date.

A UAQ FTZ visa lets you live anywhere in the UAE. Freelancers in particular often live in Dubai or Sharjah and visit Umm Al Quwain only when needed. But the visa doesn't by itself let your company trade freely on the mainland — that depends on your licence, covered next.

Doing business in the UAE market

UAQ FTZ says its licence allows business within the free zone or outside the UAE, and that business in the UAE local market must go through an agent or distributor. For goods, that means selling to a mainland trading company that imports from you; UAQ FTZ's commercial and general trading pages say you can trade inside the UAE through distributors. You can take part in exhibitions anywhere in the UAE without restriction.

This is the biggest practical question for service businesses. If most of your clients are mainland companies in Dubai or Abu Dhabi, check with the client and an adviser whether a free zone invoice works for them. Many UAE companies are happy to contract with free zone service providers, but some government entities and regulated sectors require a mainland licence. Our UAE business licence guide explains mainland options if you need them.

Corporate tax for UAQ FTZ companies

Some older UAQ FTZ pages still describe "zero corporate tax". Since the federal corporate tax regime began in 2023, every UAQ FTZ company must register with the Federal Tax Authority within 3 months of incorporation — the late registration penalty is AED 10,000 — and file an annual return. What you pay depends on which route applies:

Which corporate tax route fits a small UAQ company?

Route	Who it suits	Tax	Watch out
Qualifying Free Zone Person	Distribution from the designated zone to resellers, manufacturing, logistics, sales outside the UAE	0% on qualifying income, 9% on the rest	De minimis: non-qualifying revenue ≤ 5% or AED 5 million; audited accounts
Small Business Relief	Revenue up to AED 3 million, e.g. a consultant or online seller	Treated as no taxable income	Must elect; can't be combined with QFZP; available until 31 December 2029
Standard rates	Everyone else	0% up to AED 375,000, 9% above	Normal return and records

Qualifying Free Zone Person

Who it suits

Distribution from the designated zone to resellers, manufacturing, logistics, sales outside the UAE

Tax

0% on qualifying income, 9% on the rest

Watch out

De minimis: non-qualifying revenue ≤ 5% or AED 5 million; audited accounts

Small Business Relief

Who it suits

Revenue up to AED 3 million, e.g. a consultant or online seller

Tax

Treated as no taxable income

Watch out

Must elect; can't be combined with QFZP; available until 31 December 2029

Standard rates

Who it suits

Everyone else

Tax

0% up to AED 375,000, 9% above

Watch out

Normal return and records

The QFZP 0% rate needs substance in the zone, qualifying income, audited financial statements and non-qualifying revenue within the de minimis limits. UAQ FTZ's designated zone status helps distribution businesses, because distributing goods in or from a designated zone to customers who resell them is a qualifying activity. But sales to consumers — typical for an e-commerce brand — and many services to mainland customers generally aren't.

For a lot of small UAQ companies, Small Business Relief is the simpler route: a company with revenue of AED 3 million or less can elect to be treated as having no taxable income, through tax periods ending by 31 December 2029. You can't claim it as a QFZP, so you choose one or the other. Freelancers on a permit are natural persons; they generally only fall into corporate tax once their business turnover passes AED 1 million in a year. Test your figures with our UAE corporate tax calculator.

UAQ vs Ajman vs Hamriyah: pros and cons

All three are government free zones in the northern emirates, and all are listed as designated zones. They differ on price, port access and the facilities they publish.

UAQ's strengths: an all-in visa package with insurance and Emirates ID at a published price, renewal at the same cost, remote setup, one of the lowest published land rents, and a freelance permit in your own name. Its weaknesses: further from Dubai's business districts than some rivals, a smaller local market, more limited published information on warehouse and office rents, and the usual free zone limit on direct mainland trading.

Ajman Free Zone is hard to beat if you don't need a visa at all, and its calculator shows prices for every combination. Hamriyah Free Zone suits manufacturers who need port access and heavy-industrial land. If you need a Dubai address, look at Meydan Free Zone; for container-scale logistics, JAFZA.

Renewals, amendments and growing in UAQ

A UAQ FTZ licence is valid for at least a year, and you can buy a multi-year licence if you'd rather lock in your setup. UAQ FTZ's client relations team handles renewals and amendments — changing activities, adding shareholders or amending share structures — and the authority says activities can be amended at any point during the licence term. Renewal is also when most businesses add visas or move from a shared workstation to an independent office, because the visa options follow the space you lease.

Plan renewal early. Your residence visa is valid for 2 years, but your licence renews every year, and an expired licence can block visa renewals, bank transactions and your corporate tax filing. Keep your Emirates ID, lease agreement and licence dates in one calendar, and diarise your corporate tax return, due within nine months of your financial year-end under the federal rules.

If you outgrow a free zone model altogether — for example, because most of your clients turn out to be mainland government entities — you'll typically need a separate mainland licence or branch, so build that possibility into your first-year plan.

Your UAQ FTZ yearly calendar

0/7

• Licence renewal date (yearly, or multi-year)
• Co-working or office lease end date
• Residence visa and Emirates ID expiry (2-year visas)
• Corporate tax return — within 9 months of year-end
• VAT returns, if registered
• Medical insurance renewal
• Activity or shareholder changes to make at renewal

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Common mistakes to avoid

• Comparing headline prices with different inclusions. One package includes the visa, Emirates ID and insurance; another may not. Line them up item by item.
• Ignoring renewal. UAQ Start says it renews at the same price — ask any other zone for its year-two cost in writing.
• Choosing the wrong activities. Freelance permits allow two related activities, and service licences two. Pick carefully; amendments cost money.
• Assuming you can invoice anyone in the UAE. Mainland sales of goods go through a distributor.
• Missing corporate tax registration. The AED 10,000 penalty applies even if you owe no tax.
• Paying an agent who isn't authorised. Deal with UAQ FTZ directly or confirm the agent's appointment with the authority.

Official links

• UAQ FTZ — official site
• UAQ Start package (AED 12,500)
• UAQ freelance permit package (AED 9,999)
• UAQ FTZ — licences and legal entities
• UAQ FTZ — leasing (offices, warehouses, land)
• Federal Tax Authority — corporate tax registration
• Ministry of Finance — Small Business Relief extended to 2029

What to do next

Write down the activities you'll actually carry out and who your customers are — UAE businesses, UAE consumers or overseas buyers. That decides the licence, whether a free zone works at all, and your tax route. Then get a written quote from UAQ FTZ and from one alternative, such as Ajman, with the same activities and visa count, and compare them in our startup cost calculator. Once licensed, register for corporate tax straight away and decide whether Small Business Relief or the QFZP route fits you.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does a UAQ Free Zone licence cost?

UAQ FTZ's official UAQ Start package is AED 12,500 and includes a business licence with up to 10 activities, one investor visa, Emirates ID, medical test, basic medical insurance and a co-working space with lease. The freelance permit package is AED 9,999 with a residence visa. Both prices were read on UAQFTZ's package pages on 7 October 2026; extra visas and activities cost more.

Is UAQ Free Trade Zone a government free zone?

Yes. UAQ FTZ is a free zone authority under the Government of Umm Al Quwain. It began in 1987 as Ahmed Bin Rashid Port and Free Zone, and its two locations — at the port and on Sheikh Mohammed Bin Zayed Road — are listed as designated zones in Cabinet Decision No. 59 of 2017. Check you're dealing with uaqftz.gov.ae or uaqftz.com, not a look-alike agent.

Does UAQ Free Zone offer a flexi desk?

UAQ FTZ calls it a shared workstation or co-working space. Every UAQ package includes one, because UAQ FTZ says a shared workstation is the minimum facility to register a company. It covers the lease requirement for the licence and an investor visa. Growing teams can move to independent offices from 9 sq m, warehouses or land plots.

How long does UAQ Free Zone company setup take?

UAQ FTZ says the licence is typically issued within one working day once documents and payment are complete, and that company formation can be done remotely. The investor visa takes longer, because you must be in the UAE for the medical test, biometrics and visa stamping. Allow a few weeks in total, plus time to open a bank account.

Can a UAQ Free Zone company trade in Dubai?

A UAQ FTZ licence lets you do business inside the free zone and outside the UAE. To sell into the UAE local market — including Dubai — UAQ FTZ says you go through a mainland agent or distributor. You can take part in exhibitions anywhere in the UAE. Service businesses with UAE clients should take advice on mainland licensing before signing contracts.

UAQ Free Zone or Ajman Free Zone — which is cheaper?

At the very bottom, Ajman: AFZ's calculator lists a no-visa package at AED 5,555. With one visa, they're close — AFZ's Starter at AED 13,131 versus UAQ Start at AED 12,500, which bundles Emirates ID, medical and insurance. Compare written quotes on the same inclusions, the number of activities, and renewal cost before deciding.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.UAQ Start — official UAQFTZ package — Umm Al Quwain Free Trade Zone · accessed 7 October 2026
2. 2.UAQ Freelance Permit — official UAQFTZ package — Umm Al Quwain Free Trade Zone · accessed 7 October 2026
3. 3.Licenses & legal entity — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
4. 4.Business licensing services — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
5. 5.Commercial licence / General trading licence / Freelance permit — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
6. 6.Leasing services — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
7. 7.Business setup steps — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
8. 8.Benefits / Business support services — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
9. 9.About the free trade zone — Umm Al Quwain Free Trade Zone Authority · accessed 7 October 2026
10. 10.Cabinet Decision No. 59 of 2017 on Designated Zones — UAE Cabinet (copy hosted by Grant Thornton UAE) · accessed 7 October 2026
11. 11.Corporate Tax Guide — Free Zone Persons (CTGFZP1) — Federal Tax Authority (UAE) · accessed 7 October 2026
12. 12.Corporate Tax registration — Federal Tax Authority (UAE) · accessed 7 October 2026
13. 13.Ministry of Finance announces extension of Small Business Relief until 31 December 2029 — UAE Ministry of Finance · accessed 7 October 2026