When people think of starting a business in the United Arab Emirates, usually Dubai or Abu Dhabi that comes to their mind. However, the Emirate of Sharjah is said to be more traditional compared to other Emirates in the country. Though not as big as Dubai or Abu Dhabi, it offers great advantages to people living and working there. When it comes to business setup, Hamriyah free zone is a popular choice in Sharjah. Company formation in Hamriyah comes with 100% foreign ownership, tax exemptions, flexible lease options, and various other conveniences and facilities.
So, let’s learn a little more about the Hamriyah Free Zone in Sharjah.
Advantages of company formation in Hamriyah
Hamriyah Free Zone is a premier destination for growing your business. Additionally, various other specific advantages offered by HFZ make it an irresistible proposal for international investors:-
- Profit repatriation and foreign ownership – Foreign business owners can avail a unique advantage with the Hamriyah Free Zone business setup. They can own their company 100%, thereby eliminating the need for local partnerships and granting complete control of the business to the foreign owner. In addition, they can also repatriate the profits drawn from their business in HFZ and reinvest or distribute as per their financial goals.
- Tax haven – Business owners operating in HFZA can enjoy significant tax benefits such as complete exemption from corporate and income taxes. This facilitates ample cost savings and boosts profitability, creating more room for business development, innovation, and expansion.
- Seamless trade – HFZA has implemented streamlined customs procedures that minimize the bureaucratic hurdles and accelerate the trade of goods. Furthermore, it creates a highly trade-friendly environment coupled with customs tax exemptions. This facility enables businesses to optimize their supply chains and reach a wider global audience.
- World-class infrastructure – The top-notch infrastructural facilities in the Hamriyah Free Zone empower businesses to boom and flourish. The modern warehouses, industrial units, and well-equipped office spaces cater to the diverse needs of the companies. In addition, they are also aided with a comprehensive suite of business support services such as banking, legal assistance, and visa support.
Permitted activities for Hamriyah free zone business setup
The Hamriyah Free Zone supports numerous business activities. The key sectors include the following:-
- Manufacturing and Industrial Production
- Logistics and Warehousing
- Trading and Import/Export
- Maritime and Shipping
- Renewable Energy and Sustainability
- Information Technology and Software Development
- Food Processing and Agribusiness
- Healthcare and Pharmaceuticals
- Consultancy and Professional Services
- E-commerce and Retail
For the complete list of permissible activities, speak with a business advisor at Shuraa Business Setup.
Types of licenses in Hamriyah FZ
There are mainly three types of business licenses offered for company formation in the Hamriyah Free Zone –
Industrial license
An industrial license is for companies that are engaged in manufacturing, processing, packaging, or assembling products within the free zone. Businesses operating in this sector can leverage world-class industrial infrastructure along with duty exemptions on raw materials. With an industrial license, companies can capitalize on the strategic location of the HFZ for international export.
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Commercial license
Businesses that are involved in trading, import, export, distribution, and storage of goods can obtain a commercial license. Additionally, it has sub-categories of licenses including general trading, trading, and e-commerce. A Commercial license provides operational flexibility to entities that deal with a variety of products. It covers the broad spectrum of trading activities and also caters to online ventures.
Service license
Companies or individuals who are engaged in delivering professional services and expertise within the free zone can acquire this license. It covers a wide range of sectors, such as consultancy, IT, logistics, and healthcare.
Thus, the core business activities you choose help in selecting the appropriate license for your company. Business setup consultants of Shuraa can assist you in evaluating your operational needs and recommending the most suitable license type for your venture in the Hamriyah Free Zone.
Procedure for Hamriyah free zone business setup
There is a structured process for starting a new business in the Hamriyah Free Zone –
Choose your business activities
This is the most vital aspect of a successful Hamriyah Free Zone business setup. Determine the business activities that you want to engage in your company. This will help you decide on the license you can apply for. Choosing an inappropriate activity will lead to the selection of the wrong license, further causing errors during company registration and other processes like bank account opening, visa processing, etc.
Determine the corporate structure
The legal entities available for company formation in Hamriyah Free Zone are FZE (Free Zone Establishment), FZC (Free Zone Company), and branches of existing domestic or foreign companies. As a business owner, you need to specify the structure you want to establish in the region.
Prepare the required documentation
Arrange the necessary documents that you will need for your license application. These include –
- Passport copy of the company owner
- Business plan
- No Objection Certificate (NOC) from the current sponsor
Once you have submitted these documents to the relevant authorities, pay the registration and processing fees for your license.
Lease agreement and office setup
Find an office or warehouse space in the Hamriyah Free Zone to conduct your business operations. Further, sign a lease agreement and seek necessary approvals for the office setup. Make sure that the physical infrastructure and furnishings in the office are in accordance with the regulations and guidelines of HFZA (Hamriyah Free Zone Authority).
Collect the license
If your application and documents are approved by the authorities, they will issue your license that you can collect along with other company documents such as –
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Investment Service Agreement
- Share certificate
- Lease agreement
It is to be noted that some of these documents would be electronic, while some would be handed over as hard copies.
Secure an Establishment Card
Upon receiving your business license, you will entitled to various other privileges in the region, including an Establishment Card that holds details about your company and visa quotes.
Apply for an entry permit
An entry permit is required if you are living outside the UAE. After getting the permit, you can enter the country and get a visa issued within 60 days.
Undergo a medical test
A comprehensive medical test is mandatory for visa processing. The applicant has to undergo a medical check-up and submit the reports to the authorities. If the reports are fine, the authorities will confirm the visa of the applicant.
Collect your Emirates ID
Emirates ID is a national identification card issued to all the residents and citizens of the UAE. the applicants, after receiving their residence visa, must apply for an Emirates ID.
Open your bank account
Business entities in the Hamriyah Free Zone must have a corporate account in the region. Being one of the most respectable free zones, it has several certified banks in its territory. You can provide the required credentials and set up a corporate account for your business transactions.
Conclusion
Hence, this is all it takes to start your own business in the Hamriyah Free Zone. It is a simple task only if you know the right trail. However, partnering with a business setup consultancy like Shuraa Business Setup can relieve you from this stress and complete this job on your behalf.
For a seamless company formation in Hamriyah, contact Shuraa at info@shuraa.com
