Hamriyah Free Zone

Hamriyah Free Zone is located on the west coast of Sharjah. Because of the deepwater port and import/export-orientated infrastructure, entrepreneurs set up a Hamriyah Free Zone Establishment (FZE), or Company (FZC), primarily for international trading activities. Low annual license fees make it particularly attractive to manufacturing companies and service providers. The following information enables entrepreneurs to make an informed decision on whether Hamriyah Free Zone is the optimum solution to fulfill international business objectives.

Hamriyah Free Zone company formation allows 100% foreign ownership. Furthermore, there are no restrictions on the repatriation of capital or profits from the UAE.

If properly-structured, Hamriyah Free Zone company formation is the perfect way to legitimately book international profits without paying local corporation tax. There is neither any corporate tax nor personal income tax levied in Sharjah. A company located in Hamriyah enjoys 100% legal exemption from all import and export duties. Furthermore, there are no requirements for an Hamriyah Free Zone company to prepare annual financial statements or tax returns to any authorities, making Hamriyah company formation easy and cost-effective to manage.

Hamriyah Free Zone company formation is cost effective when compared with other UAE free zones, and a quick process, often taking only 24 hours with the correct documentation. For example, the registration fee for a Hamriyah Free Zone establishment (FZE) is Dhs9,000 (US$2,450), compared to US$2,750 in Jebel Ali Free Zone. Ongoing costs are also competitive. Annual license fees amount to a maximum of US$3,250 for a trading company, compared with more than US$8,000 in Jebel Ali Free Zone.

Investors setting up a business in Hamriyah Free Zone obtain a 25-year land lease, renewable for another 25 years and thereby guaranteeing 50 years' legitimate tax-exempt operations, with pre-built warehouses, factories and office units for lease, coupled with established communications infrastructure for the modern age.

International entrepreneurs obtain one of 3 different license types for their Hamriyah Free Zone company: i) Industrial License ii) Services License and iii) Commercial License. Holders of an Industrial or Commercial license require a local distributor or agent for their products to be sold in the UAE. A holder of a Service license may only conduct the services stipulated on the license within the Hamriyah Free Zone. Healy Consultants assists internaional entrepreneurs efficiently and effectively complete all company registration formalities, including obtaining company registration certificates and operating licenses, and opening a bank account for the entity.

Another type of license, called the National Industrial License, allows the company to operate as a local, or AGCC company, within the UAE. This license gives customs duty exemptions on imports but must meet specific conditions including 51% ownership by an AGCC citizen.

The HFZA is in a unique geographical position, with access to the Arabian Gulf and the Indian Ocean, beside three world-class eaports providing access to both western and eastern economies. An international airport is also accessible, which connects to 230 cities, considering itself as a gateway between three continents, and the emerging markets throughout Asia and Africa.

A large emphasis is put on the nurturing of small and medium sized enterprises (SME's). There is a first of it's kind 'Hamriyah SME Zone' which consists of seven strategic clusters to promote the development of SME's. Programs have been developed, such as the E-office package, to provide SME's with individual tailored assistance to commence business and operate successfully. For more information, visit the official HFZA website.

For the import and export of goods that are approved under a business’ license no additional duties will be imposed.

Establishing a FZE or an FZC in Sharjah requires a minimum capital of AED 150,000 (approx. US$41,000) but there is no minimum capital required when setting up a branch of a foreign / local company.

A minimum of two directors and one secretary are needed for setting up a FZE/FZC. HFZA may also require that such persons hold a valid residence or work permit. At least one director and the secretary must be residents.

Sharjah does not enjoy the global image and reputation of Dubai. Consequently, Hamriyah Free Zone company formation may not be the best solution for international entrepreneurs for whom corporate image is important.

Due to its location, Hamriyah Free Zone is less popular among many entrepreneurs due to the lack of quality acommodation compared to Dubai. Entrepreneurs setting up a business in Hamriyah Free Zone and living in Dubai face heavy peak hour traffic.

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