HAMRIYAH FREE ZONE
Costs for: Hamriyah Free Zone
About Hamriyah Free Zone (HFZA)
The Hamriyah Free Zone (HFZA) is one of the top zones for industrial development in the UAE. Covering a huge area of almost 26 million square meters, it is the second-largest industrial free zone in the country. This city is famous for having lots of businesses. HFZA is a spacious location and aims to cater to diverse needs. Offices, warehouses, factories are just few of facility options available in HFZA. The Hamriyah Free Zone has a harbor that adds to its comprehensive infrastructure and makes it more attractive to be a strategically important maritime and industrial center. HFZA has a huge role in promoting global cooperation in order to help businesses expand.
Benefits of setting up a company in: Hamriyah Free Zone
Business Activities
A Guide to Hamriyah Free Zone Company Formation
Starting a business in UAE is a big dream for many, especially when it comes to Hamriyah Free Zone (HFZA) which is full of opportunities and chances to grow your business to a great extent. Obviously, the UAE is a country that is very famous globally to attract many entrepreneurs because in one year there are issued more than 50,000 business licenses. The second largest industrial free zone HFZA, with an area of 26 million sqr meter, is ideal for trade access. HFZA is an amazing place where business environments are diverse and there are many companies to work from. It’s great to have so many global opportunities for collaboration and networking.
In Hamriyah Free Zone, entrepreneurs can enjoy investor-friendly policies such as 100% foreign ownership and tax exemptions, which provides them an attractive and supportive environment to grow their business. The process of starting a business in a free zone is facilitated by the fast and efficient licensing procedures and duty exemptions. This helps entrepreneurs to quickly and easily set up their businesses in the free zone, whether they are involved in manufacturing, trading or any other activity. This location is zooming towards brilliant opportunities as well as recognition, thus becoming a hub of multiple thriving business enterprises.
What Is the Hamriyah Free Zone?
Understanding the Hamriyah Free Zone’s business setup process involves grasping this strategic zone’s essence.
In 1995, the Emirate of Sharjah created the Hamriyah Free Zone. This zone is truly special because it allows organizations to trade along India’s east and west coasts. Because of this, it is highly valued by many for commerce. The unique location of this emirate provides it with a significant advantage as it is the only one with such a wide range of links.
Benefits are available in the Hamriyah Free Zone, which companies can enjoy. The Hamriyah Free Zone gives plenty of facilities to companies to attract them, such as tax exemption and low cost land for rent. The Freezone regime, recognized as one of the most convenient structures for Company setup, has remarkably minimum requirements which serves as an open door for the dreamers to put their entrepreneurial views into action.
The Hamriyah Free Zone encourages the growth of many industries with the government’s permission. Free Zones have various industries such as recycling, building materials, logistics, oil and gas, textile, marine, timber, heavy industry, food, packaging, petrochemical, perfume, cosmetics, and steel. It also contains SMEs as well. The inclusive environment created here is really amazing. It says a lot about the Hamriyah Free Zone commitment for promoting diversity and giving a boost to the entrepreneurial spirit.
Types of Hamriyah Companies
The free zone offers many type of company eligibility to attract foreign businesses. Specifically, two prominent entities can initiate operations within this free zone: The purpose of this assignment will be to contribute further knowledge in the field of legal aspects related to FZE and FZC.
The main difference between these two organizations is that they have a different composition of shareholders. FZEs are owned by one person while FZCs can be owned by up to 5 individuals. This allows for more diverse ownership structure for FZCs.
The amount of funds needed to start a business varies depending on the type of business. It means that, to start your own business in FZE, you need to invest at least AED 150,000 which is roughly equal to USD 41,000.
These firms need a minimum of 2 managers and 1 secretary. That means the secretary and one of the directors must live in the United Arab Emirates. This is great news for those living outside the UAE. It’s amazing how one of the directors can both be a director and a secretary at the same time. This choice is especially beneficial for international entrepreneurs because they can have a resident director in UAE and manage the business resources. Instructions: Provide two possible rephrased sentences in student tone. It makes HFZ more attractive for companies that want to grow globally.
Benefits of Starting a Company in the Hamriyah Free Zone
Considering a company setup in Hamriyah Free Zone offers a multitude of compelling reasons, making it an attractive choice for entrepreneurs. Here are some key benefits that underscore the advantages of establishing your business in Hamriyah:
Full Ownership
One of the standout advantages of initiating a company in the Hamriyah Free Zone is the provision of full foreign ownership. This eliminates the need to share requests with a sponsor or sell percentages to shareholders, even if you reside outside the UAE.
No Duties
Hamriyah Free Zone provides a business-friendly environment by exempting companies from export, re-export, or customs duties. Additionally, business owners can benefit from unique VAT advantages, enhancing operations’ overall cost-effectiveness.
Renewable Leases
In Hamriyah, entrepreneurs enjoy the flexibility of renewable leases, whether short or long. The added advantage is that lease rates remain fixed for the first ten years, providing stability and predictability for businesses.
Revenue Development Opportunities
Contracts in the Hamriyah Free Zone allow investors to develop plots for up to 60% of their revenue, offering a strategic pathway to shape and expand businesses according to their vision.
Easy Market Access
Positioned strategically, the Hamriyah Free Zone provides seamless access to UAE and GCC markets. An inner harbour and a port facilitate efficient exporting and importing, enhancing market connectivity.
Fast Online Processes
Hamriyah Free Zone leverages technology to streamline processes, allowing quick and efficient application processing. Visas, renewals, and other administrative tasks can be conveniently handled online, reducing turnaround times.
Efficient Business Setup
The business setup process in Hamriyah Free Zone is notably swift, taking just one hour to complete. This expedited process enables entrepreneurs to establish their businesses promptly and with minimal bureaucratic delays.
Great Infrastructure
The free zone boasts excellent infrastructure, including robust telecommunications networks facilitating seamless communication with business partners. Moreover, reliable electricity, water, and road networks contribute to the overall efficiency and operational excellence of businesses in the area.
Documents Needed for Starting a Hamriyah Free Zone Company
Congratulations on taking the step to start your business in Hamriyah Free Zone! Before diving into the exciting venture, ensuring you have the necessary documentation in place is essential. Here’s a checklist of the documents you’ll need:
Passport Copies: Provide copies of your passport and any shareholders involved in the business.
Certificates: Obtain a Certificate of Good Standing and Incorporation, demonstrating your business’s legal standing and status.
Personal Bank Statement: Furnish a personal bank statement reflecting your financial standing and stability.
Articles of Association (AOA) and Memorandum: Include the Articles of Association (AOA) and the company memorandum outlining your company’s legal framework and critical details.
Letter Confirming Representatives: Please submit a letter confirming the company’s representatives, specifying their roles and responsibilities.
UAE Visa Copy: Provide a copy of your UAE visa, ensuring compliance with immigration regulations.
Signed Registration Application: Complete and submit a signed registration application, a crucial step in the business setup process.
Passport Photo: Include a passport photo, often required for official documentation and identification purposes.
Approval of Business Activity and Name: Obtain permission for your chosen business activity and ensure your proposed business name aligns with regulations.
Signed Legal Papers: Prepare and submit any legal documents required for the business setup process.
Once you have all these documents, you’ll be well-prepared to apply for your business license in Hamriyah Free Zone. This comprehensive documentation ensures a smooth and efficient application process, bringing you one step closer to launching and operating your new company in this dynamic business environment. Good luck with your entrepreneurial journey!
Types of Business Licenses in the Hamriyah Free Zone
While applying for a business license in Hamriyah Free Zone, it is essential to choose the right license type that matches with our business activities. Here are the three types of business licenses available in the free zone:
Industrial License
The industrial license is made for those businesses that want to import the raw materials in UAE. Under this license, companies can produce the final products and sell them in the UAE. This license allows companies to package, assemble and manufacture the materials. It’s really great for companies involved in production and manufacturing.
Service License
Service licenses provide authority to operate specific services that are stated in the permit. If your business is based around providing services rather than selling products, you definitely need a license in order to operate legally. This can be anything from consulting to professional services or even other service-oriented activities. This License provides permission to companies to stay within the limits of Hamriyah Free Zone.
Commercial Market License
Commercial market license refer to a document granted by the government for companies that deal with import, export, distribution, storage or selling of certain goods. This license grants flexibility for trading and e-commerce. Moreover, corporate companies that have a commercial market license can decide to invest in a variety of trading and retail businesses, ranging from 3 to 5 distinct options.
Obtaining the right business license is a vital aspect of establishing a business, as it allows your organization to carry out the legally permissible activities. Hamriyah Free Zone has a variety of licensing options that can accommodate a wide range of business activities. It allows entrepreneurs to have the flexibility and support they need for their businesses to succeed.
How to Start a Business in the Hamriyah Free Zone
1. Choose Your Business Entity
The first step in starting a business is to choose your organizational structure. You can have an FZE or an FZC. It’s totally up to you!
2. Choose your business venture and obtain the proper permit.
After you have determined what type of business you want to start, you have to pick a specific industry or activity to focus on. This decision will affect your business type and ultimately, the type of license you will get.
3. Register Your Trade Name
We need to register our company’s trade name with the Sharjah Department of Economic Development. It is important to have a unique name which is distinct from other companies in UAE. There is an official list of companies provided by the government to verify the availability of names.
4. Get Pre-Approval
Before you start off with your business, you’ll need to get a pre-approval from the Department of Economic Development (DED). That means you’ll have to fill in an application form and attach all the required documents. Getting pre-approved means you’re one step closer to achieving your goal.
5. Get Approved
Just follow the steps given in the instructions and submit your documents and forms, then you are done with the application process. As a student, I await approval from your company upon submission of my work. Then you’ll get your Certificate of Incorporation after approval and after that your business license.
Setting up a business in the Hamriyah Free Zone is known to be an easy process that happens quickly and with ease. The simple steps and hassle-free procedures make UAE a common destination for entrepreneurs who want to set up their businesses. With all the documents like Certificate of Incorporation, business license in hand, you can start your own business in Hamriyah Free Zone.
Making Company Amendments
It is important to know when changing your company documents as different situations may require it like change in corporate name, appointment or transfer of director or alteration in business activity. So you have to submit the necessary files to the Economic Development Department (DED) in order to get the green light. If you don’t want to do the amendments yourself you can assign somebody else to do it on your behalf.
Hamriyah Free Zone License Renewal
Although getting a business license from Hamriyah Free Zone is quite fulfilling, it is important to understand that it must be renewed every year to ensure that the organisation keeps functioning. The government demands a audit report from businesses during the renewal process. This requirement becomes effective from the third year onwards.
The contract has a waiver you have to sign. But, you have to understand that selecting this alternative will cost you AED 1000. If you don’t submit the audit report during the renewal process you’ll have to pay this fee.
By adhering to the renewal of licenses, businesses follow the regulations to operate a smooth business in the Hamriyah Free Zone. It is important that the legal status of the business is maintained and operations are continued smoothly to face any challenges that may arise.
What to Know About Hamriyah Business Liquidation
Company Liquidation Process
Liquidate Visa and Cancel ID Card: Okay so like when you got your visa and stuff like that you have to cancel it too right ?
Cancel Lease: Please cancel the lease for our business property. The cancellation timeframe for a property is different according to its type, for instance, when it comes to flexi-office spaces, it takes just around one day to cancel the booking, whereas, for warehouses, cancellation takes around three months.
Customs Clearance for Licenses: Please ensure that customs clearance is obtained for your documents before submitting the final applications.
Deregister Business License: Okay, proceed to deregister your business license with the authorities in the Hamriyah Free Zone. This step is crucial because it notifies the guidelines of the company’s shutdown.
Cost and Deposits: This AED 6,000 fee applies to the entire liquidation process. Deposits paid for leased land with this company will be given back after the business closes.
Timeline for Liquidation: Rephrased sentence: In the Hamriyah Free Zone, the duration of winding up a company is dependent on the nature of the involved assets. scratch
Closing a business entails the liquidation process, which is a detailed procedure with multiple stages. This ensures that each aspect related to the company is properly terminated. It is vital to abide by the guidelines and comply with the time frame set by the authorities while liquidating a company in the Hamriyah Free Zone.
How to Get a Hamriyah Free Zone Visa
Getting visas is really important for starting a business in Hamriyah Free Zone, and luckily, the free zone provides a lot of options for this. This is like what I learned in my business class that companies that set up warehouse facilities can get up to 50 visas for their employees, it is so convenient and helpful for them. On top of that, entrepreneurs can apply for visas for their collaborators with a validity period of three years.
Well, the process is quite straightforward. In order to begin the visa application process, the applicant has to get a mandatory medical check done in the Hamriyah Free Zone and also fill a form for Emirates ID. This way the authorities can better know about the health status of the person and verify their identity as well.
It’s important to understand that these steps need to be done within the allowed area and cannot be done outside of it. It takes around two weeks to get the visa and ID card after the approval. The government post the documents into Emirates Post Office in the Hamriyah Free Zone. The Hamriyah Free Zone has got a very fluid visa system which simplifies the process for entrepreneurs and businesses looking for a quick and efficient setup.
Get Started With Hamriyah Free Zone Company Formation
Forming a company in Hamriyah Free Zone is easy to understand with the help of this guide. The process of starting a business is quite complicated, this guide covers the entire spectrum of setup process, from choosing the right business entity to obtaining visas and going through the licensing options, making it easier for you to navigate these complexities. Hamriyah Free Zone is an ideal location for business owners to start their companies due to its emphasis on making things more efficient. With the support of GCS Group, you can easily start a business and manage it efficiently in this fast-paced economic environment.
If you want to turn your dreams into a successful business, then you should connect with GCS Group now. We are ready to help you establish a business in Hamriyah Free Zone by guiding you and supporting you throughout the process.