LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Registration in Fujairah |

An Overview of Fujairah Company Registration

Middle Eastern emirate Fujairah has a long history. There are no deserts in Fujairah’s surroundings. In Fujairah, there are numerous prospects for businesses to establish themselves. On Fujairah’s mainland, a variety of companies, including sellers of dry fruits, rugs, and other Chinese goods, operate.

Overview

The Fujairah municipality is the primary organization that aids in creating various options when it comes to the company registration procedure in Fujairah. In addition to this, there is the Fujairah Free Trade Zone, which was created in 1987 by royal proclamation. This zone was established primarily to increase foreign investment in the nation. This free trade zone region draws a variety of industries, including the manufacturing, textiles, and steel sectors. There are more than 3 million square meters in this free zone. In addition, Fujairah offers distinct storage facilities for businesses to conduct various commercial activities.

Solar systems, plates, drilling equipment, building equipment, industrial ladders, maritime engineering, and shipping services are among the common sectors that prosper in this emirate. In addition to these, Fujairah also produces other kinds of goods. In the UAE, it is the seventh-largest emirate. As a result, it is a popular location for company registration.

Advantages of Fujairah Company Registration

The following advantages of registering a business in Fujairah:
Free Trade Zone- The Fujairah Free Zone (FFZ) and the Creative City are two examples of free trade zones in Fujairah. The primary goal of these zones was to increase international investment and other opportunities in Fujairah. This free trade zone region draws a variety of industries, including the manufacturing, textiles, and steel sectors. There are more than 3 million square meters in this free zone. In addition, Fujairah offers distinct storage facilities for businesses to conduct various commercial activities.
Thriving tourism industry- The city of Fujairah has experienced many sorts of tourism since ancient times. The Fujairah administration has launched a number of efforts to boost the travel and tourist industry. In Fujairah, there are established Friday markets where you can buy dried fruits and other consumer goods. Customers travel to Fujairah just to purchase the dry fruits that are sold there. In addition to this, the administration of Fujairah occasionally hosts a variety of festivals to draw tourists.
Oil Industry- Commercial merchant liners dock at the port of Fujairah and the Fujairah Oil Industry zone, which are important oil centers for oil transit. The Indian Ocean, which connects these, serves as a commercial hub for the transportation of oil and other cargo commodities.
Tax-Free- All of Fujairah's free trade zones are tax-free. To increase foreign investment in Fujairah, the administration has launched a variety of measures. In light of the benefits listed above, an investor may choose to register a company in Fujairah.

Business Structures that can be used to Register a Company in Fujairah

An investor must first decide on the best business structure before beginning the Fujairah company registration process. In Fujairah, the following corporate structures exist:
Partnerships Business- A partnership would be a company or other entity created by two or more partners with the goal of splitting earnings. In Fujairah, partnership entities come in a variety of shapes. In general partnerships, the partners' liability would be uncapped. Small Liability Partnerships are legal entities where each partner's liability is constrained to their capital contribution.
Joint ventures- A joint venture is an agreement or contract between two or more people or businesses that is only valid for a set amount of time, with the goal of working together on a particular project or activity. The fundamental feature of this type of organization is that joint venture partners would split profits. The joint venture would, however, only be in operation for a little time. This type of entity is an option for an investor registering a business in Fujairah.
Public Companies (Joint Stock Companies)- A public limited corporation is this kind of business. This sort of organization must have a minimum capital of AED 10 million. For this kind of organization to be formed, there must be at least 10 members. This company's shares are tradable on a stock exchange.
Private Companies- This entity can be used by an investor to register a corporation in Fujairah. AED 2,000,000 is the minimal amount of capital needed to establish this type of organization. This kind of organization would need to have a minimum of three members.
Limited Liability Companies- One of the most popular business structures used for company formation in Fujairah is this one. AED 1, 50,000 is the minimal amount of capital needed for this kind of organization. The business name of the entity must be obtained from the local municipality before it can be established in Fujairah.
Branch Offices- This kind of business entity can be used by a foreign corporation that wants to form an entity in Fujairah. Any activities that fall under the purview of the overseas parent business may be performed by a branch office. Typically, the branch office is capable of handling any kind of task.
Representative Offices- Additionally, a foreign business may open a representative office in Fujairah. This kind of office wouldn't do any activities that bring in money. The representative office can, however, conduct market research and advertising operations.
Entities in a Free Zone- A candidate seeking company registration in Fujairah would be limited in who could control the business. A foreign entity is only permitted to own 49% of the shares in a corporation. A national of the UAE must be chosen to possess 51% of the shares. As required by UAE Federal Law, this. This type of corporation can be used if a company desires complete control of the Fujairah-based company. In these free trade zones, there are no taxes of any kind.

Eligibility Requirements for Fujairah Company Registration

For the purpose of registering a business in Fujairah, the following qualifying requirements must be met:
Minimum Capital- An applicant must meet the minimum capital requirement for Fujairah company registration. The applicant must possess the required minimum capital for the type of business being used.
Requirements for Free Trade Zones- The requirements for establishing a business in the free trade zone must be met if the applicant needs to incorporate in one of the zones.
Visa prerequisites- Typically, foreigners prefer Fujairah's free trade zones when forming their businesses. Therefore, the business must take the necessary steps to get visas for foreign citizens who wish to work in Fujairah.
Leading Executives- According to the specifications of the type of business established in Fujairah, a minimum number of executives must be appointed.

How to Register a Company in Fujairah

A Free Zone company is the best business to use for a foreign national. The creation of a free zone firm has numerous advantages. In Fujairah, the following process must be taken into account for company registration:
Company in a Free Zone
Approvals- The applicant must first obtain the necessary approvals. In Fujairah, there are numerous free trade zones. Therefore, the applicant would need to first obtain all the clearances.
Initial Acceptance- The applicant must provide the following paperwork for first approval:
A fully filled out application
Business Plan – The business plan must include all of the company's aims and objectives.
Copies of the company's current license must be presented to the authority if it is a local business.
The Company's shareholders must present copies of their passports. The Managing Director, Directors, and other executives must also send copies of their passports with this. It is required that the copies be in color. Copies in black and white would not be allowed.
The managing directors and shareholders' signatures.
The corporate entity must present its two years' worth of annual statements and audited financial reports.
The shareholders' bank statements.
The current sponsor's certificate of no objections.
A title deed and a letter of intent.
The Registry Identification Code must also be given by the managing director (RIC). The copies of the RIC require both notarization and signatures. (Original Version).

Less paperwork must be provided if the applicant for company formation in Fujairah engages in many freelance operations. The following paperwork must be submitted by independent contractors:
Application for Registration.
Curriculum Vitae (CV).
A bank letter of recommendation.
RIC (Original Copy- Signed and Notarised) (Original Copy- Signed and Notarised).

Finally Registering- The applicant must pay the required license and registration fee after securing an initial registration. This is the last registration application. Consequently, the following documents must be submitted:
Complete the application.
Registration-related Board Resolution (attested and notarised).
The managing director is awarded POA (attested and notarised).
Articles of Association and the Memorandum of Association (attested and notarised).
The managing director's signature (attested and notarised).
Passport details (attested and notarised).
Details about the share capital.

Giving out a license- The lease agreements would be created by the Fujairah Municipality (Fujairah Chamber of Commerce). The candidate would then receive their trade license.

Documents needed for Fujairah company registration

In Fujairah, the following papers are necessary for company registration:
Company

Completed application form
Business plan: The business plan must include all of the company's goals and objectives.
Copies of the current license must be presented to the authority if the business is a local one.
The Company's Shareholders must submit copies of their passports. The Managing Director, Directors, and other executives must also produce copies of their passports. It is required that the copies be in color. Copies in black and white would not be allowed.
Annual Statements/Audited Financial Reports of the corporate entity for the previous two years, together with the managing director's signature, must be submitted.
Shareholders’ Banks statements
Current Sponsor's No Objection Certificate
A letter of intent
A title deed
The Registry Identification Certification must also be supplied by the managing director.

To help freelancers

Application for Registration
Curriculum Vitae (CV)
Letter of recommendation from the Bank
RIC (Original Copy- Signed and Notarised).

Final Documents for Fujairah Company Registration

Resolution of the Board in connection with registration (attested and notarised)
Completed Application
The managing director is granted POA (attested and notarised)
Articles of Association and the Memorandum of Association (attested and notarised)
The managing director's signature (attested and notarised)
Details of a passport (attested and notarised)
Details regarding the share capital

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FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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Overview Advantages of Fujairah Company Registration Business Structures that can be used to Register a Company in Fujairah Eligibility Requirements for Fujairah Company Registration How to Register a Company in Fujairah Documents needed for Fujairah company registration What Estabizz can do for you?FAQs Blog

An Overview of Fujairah Company Registration

Overview

Advantages of Fujairah Company Registration

Business Structures that can be used to Register a Company in Fujairah

Eligibility Requirements for Fujairah Company Registration

How to Register a Company in Fujairah

Documents needed for Fujairah company registration

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