Hamriyah Free Zone, the second largest industrial free zone in the United Arab Emirates, extends over an area of 26 million square metres. Established on November 12, 1995, by Emiri Decree No. 6 of 1995, it is home to more than 6,500 companies from 163 countries. In addition to world-class facilities including offices, warehouses, factories and executive office suites, the Hamriyah Free Zone has more than 15 key business services on site, such as corporate banking and auditing, currency exchange, conference rooms and accommodation.
Also known as the Sharjah Industrial Zone, the Hamriyah Free Zone in the Emirate of Sharjah was established in 1995. The zone includes about 6,500 companies from more than 163 countries. Sharjah is considered the third largest emirate in the United Arab Emirates and the cultural capital of the Arab world, as declared by UNESCO.
The emirate has a view of the Arabian Gulf to the west and the Gulf of Oman to the east, providing access to important emerging markets in several countries such as Saudi Arabia, India, Iraq and Iran. The Hamriyah Free Zone Authority also enjoys easy access to Sheikh Mohammed bin Zayed Road and Emirates Road.
Establishing a company in the Hamriyah Free Zone
Establishing a company in the Hamriyah Free Zone is considered an ideal option for investors who want to benefit from a facilitating and low-cost business environment in the Emirate of Sharjah. Hamriyah Free Zone provides modern infrastructure and integrated facilities that support various commercial activities including manufacturing, logistics and general trade. It allows companies registered in this region to enjoy full tax exemptions on profits and customs duties, in addition to 100% foreign ownership of companies without the need for a local partner. Hamriyah Free Zone also offers quick and easy registration procedures in addition to business support and consulting services that contribute to the success of startups and expanding companies alike.is distinguished by the following importance:
- Full foreign ownership
- Short and long term rental options, renewable
- Access to the markets of the Gulf Cooperation Council countries and the United Arab Emirates
- Online service for visas, renewals and other applications
- Business setup within an hour
- Access to the inner port is 4 meters deep and the deep port is 14 metres
- Special benefits on VAT
- 24 hour security
- Fixed land rental rates for the first ten years
- Communications infrastructure
- Good road network, electricity and water infrastructure
- On-site customs facilities and workplaces
Steps to establish Hamriyah Free Zone companies
To establish a company in the Hamriyah Free Zone in the Emirate of Sharjah, you usually follow several important steps that include:
- Feasibility study and planning: The investor must first conduct an integrated feasibility study of the business idea and the target market, in addition to developing a detailed business plan that includes financial and operational goals.
- Choosing the type of company: The appropriate type of company is chosen, whether it is a limited liability company, an individual, or a joint stock company, according to the nature of the planned business.
- Determine the activities and trade names: You must determine the business activities that the company will undertake, and ensure that a unique trade name is available for the company that is consistent with local regulations.
- Preparing legal documents: This includes preparing and signing the articles of incorporation and articles of association of the company (Memorandum of Association) and the necessary approvals from local authorities.
- Submitting a registration application: After collecting all documents, the registration application is submitted to the competent government agencies in the Hamriyah Free Zone.
- Obtaining licenses and approvals: The registration and establishment process may require obtaining special licenses or approvals from the competent authorities, such as a building license or environmental licenses, depending on the type of business planned.
- Opening a bank account: A bank account must be opened in the name of the company to facilitate financial operations and commercial transactions.
- Health Insurance: Health insurance may also be required for employees, and necessary documentation must be provided in this regard.
- Visas and Labor: If hiring labor, local regulations must be adhered to to secure visas and residency for employees.
Establishing a company in the Hamriyah Free Zone requires compliance with local legal and administrative procedures, and it is recommended to cooperate with Itqan Business Advisors to ensure that all steps are followed correctly and effectively.
Types of companies in the Hamriyah Free Zone
Here is the following table showing the types of companies allowed in the Hamriyah Free Zone in Sharjah:
| Type of Company | a description |
|---|---|
| Shareholding company | A company owned by shareholders who share profits and losses according to their shares in the capital. |
| A limited liability company | A company in which shareholders are liable for its debts to the extent of their shares in the capital. |
| Sole proprietorship | A company managed by only one person, and this person is responsible for all debts and obligations of the company. |
| Private joint stock company | A company owned by a person or shareholders by a limited number of individuals, and investment in it is made with special approval. |
| Public joint stock company | A company that allows its shares to be sold to the general public, and anyone can buy shares in it. |
These types provide flexibility of choice for investors and companies, allowing the company structure to be tailored according to their needs and desired business strategy.
Business areas allowed in the Hamriyah Free Zone
The Hamriyah Free Zone in Sharjah supports a wide range of commercial activities, making it an ideal destination for companies operating in various sectors. Here are some of the main areas of business permitted in the Hamriyah Free Zone , with an explanation of each area:
- Manufacturing and assembly: These industries include the production of various products including electronic devices, furniture, food, plastic products, and chemical products.
- Logistics and Distribution: These activities include warehousing and distribution of products, and advanced logistics services such as supply chain management and customs clearance.
- Advisory and financial services: including legal, accounting, management, financial, and investment consulting services.
- Technology and Innovation: These sectors include technical and innovative companies in the fields of software, information technology, communications, and research and development.
- Educational and training services: Includes educational and training services in various fields such as higher education, vocational training, and e-learning.
- Health and medical services: includes medical and health services, specialized medical centers, health insurance, and additional health services.
- Tourism and Hospitality: This industry includes hotels, resorts, tourism and hospitality services including travel and medical tourism.
- General trade and distribution: includes the import and export of various products, and general trade between companies and consumers.
These areas are considered ideal for investment in the Hamriyah Free Zone, as they provide advanced infrastructure and lucrative tax exemptions, in addition to government support and integrated services that help businesses grow effectively and sustainably.
Establishing a company in the Hamriyah Free Zone
This region is considered a good platform for those wishing to thrive in the food industry, given that it is considered a designated center for the food industry and allied industries that deal in manufacturing, importing, exporting and repackaging food materials. Those looking to establish companies in the food industry can benefit from the “Food Park” which includes value-added services provided in this regard, from certification of halal products, food testing and laboratory services. Establishing your company in this free zone provides you with the following advantages:
- 100% retransfer of capital and profits abroad
- 100% exemption from import and export duties
- No tax is imposed on corporate gains or personal income in most cases
- No restrictions on the use of currency
- Low cost of operations
- Pre-built offices, factories and warehouses
- Fast establishment and licensing procedures
- Single window for customs clearance; That is, multiple administrative services in one station
- Provides labor recruitment assistance and additional support services, such as sponsorship and on-site housing
- Abundant and inexpensive energy
- Excellent infrastructure, communications, and attractive work environment
How can you establish a company in the free zone?
Establishing companies in the free zones in Dubai is much easier than establishing a company inside Dubai, as it can be 100% owned by any nationality, and the presence of a partner or sponsor who is a citizen of the UAE is not required, as the company is registered as a free zone establishment or it is a company belonging to The free zone or a branch or representative office in the free zone in Dubai. In this case, it is possible for the main company to be outside the Emirates, and it is not required to be inside the Emirates. The companies located within the free zone are regulated through the authority responsible for the free zone, which is the one that issues any licenses to the company. This depends on the location of the free zone and the activity it carries out. The type of license issued by the responsible authority varies according to the commercial activity. A company can be established in the free zone by following some steps, including:
- Choose the company’s location
- Agreeing on the trade name, as it is the name that distinguishes one company from another.
- Obtaining the company’s business license.
- Obtaining initial approval to start work.
- Commercial license registration.
- Complete the requirements for a commercial license and obtain it.
Establishing a company in the free zone
The UAE is distinguished by the fact that it has more than 40 free zones in addition to some areas that are being established. Therefore, establishing a company in a free zone is one of the difficult matters facing the investor, as it is difficult to choose between many areas. Therefore, a company, through its extensive experience in business management, helps… Many investors choose the appropriate free zone for their commercial activity, as it helps in establishing and establishing a company in the free zone in the shortest time and at the lowest costs.
In conclusion, establishing a company in the Hamriyah Free Zone in the Emirate of Sharjah is a successful strategic step for investors looking for a supportive and appropriate business environment. The Hamriyah Free Zone features advanced infrastructure, attractive tax exemptions, and easy registration procedures that help start businesses smoothly. It also provides a wide range of permitted business activities, allowing the appropriate choice of company type according to strategic objectives and needs. Collaborating with local consultants and business specialists, investors can achieve sustainable success and expand their business in this distinguished business environment.
Frequently asked questions about establishing a company in the Hamriyah Free Zone
Are there hidden or unexpected costs when setting up a company in the Hamriyah Free Zone?
Hamriyah Free Zone is transparent in its costs, but expected costs such as registration fees, annual fees, and additional costs for consultancy services should be reviewed if necessary.
What are the procedures required to obtain work and residence permits for employees?
Submit requests to the competent authorities in the free zone. Providing necessary documents such as employment contracts and medical certificates. Pay the required fees and comply with local immigration and labor regulations.
Is there a need for a local partner to establish a company in the Hamriyah Free Zone?
No, foreigners can own 100% of companies without the need for a local partner.
