Fujairah Creative City- Non- Designated Zone

Fujairah Creative City

Creative city welcomes investment from almost all media and management related disciplines and guarantees free zone status to the companies established. One of the facilities offered by the creative city is the virtual office/flex desk with the license, which recognizes the freedom required by the creative mind to wander around without being tied down in the frame of the office. A Company started with a virtual office facility can also obtain a visa for up to four per the current bid. Type License Available Creative City creates an environment for individuals and businesses licenses working in the fields of media, communications, design and technology. The city is made of zones: Audio Visual, Publishing, Training, Theatrical Arts, Design & Graphics, Technology & IT and Cinema. Creative City initially offers companies local licensing, a business centre facilities (on two dedicated floors of Fujairah Tower) as well as a satellite uplink facility complete with play-out for television broadcast. Interested parties can therefore immediately register their establishments and utilize facilities in the tower whilst booking their space within the Zone of their business activity.

Benefits of establishing a company within Fujairah Creative City:

  • 100% ownership
  • No capital requirements
  • 100% tax free
  • Complete support services
  • Flexible business packages
  • No mandatory office lease
  • Successful professional business environment
  • No auditing
  • International reach.

Types of licenses available in Fujairah free zone creative city:

  • Publishing
  • Management of broadcasting
  • Marketing and Media Services
  • Music and Entertainment
  • Consultancy
  • Broadcasting
  • Production/Post production/Filming
  • Information Technology Services

Type of licenses:

  1. Commercial License – Single Owner (FZE): Visa availability: No visa. Processing time: 6-7 working days.
  2. Commercial License FZCO – Multiple Owners (FZ LLC): Visa availability: No visa. Processing time: 6-7 working days.
  3. Freelancer – Visa availability: 3 Fujairah free zone visas. Processing time: 6-7 working days
  4. Baby Business: Baby Business package is designed for small businesses to benefit from an easy company set-up process with minimized overhead costs. Visa availability: 6 Fujairah visas. Processing time: 6-7 working days.

Value Added Tax (VAT):

Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.

Who should register for VAT?

A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipatedĀ  that the total value of taxable supplies exceed AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.

What is a designated zone?

A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.

a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)

What is a non-designated zone?

Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.

What transactions are subject to VAT within Designated zones?

a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.

What government/free zone fees (License/Visa/rent) are subject to VAT?

In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.

If you need additional assistance or have any questions, please contact the following:
Email: legal@jitendragroup.ae
Tel: +971 4 343 8022