Starting a business in the Hamriyah Free Zone (HFZ) can be a game-changer for entrepreneurs and established companies alike. Located in the Emirate of Sharjah, UAE, Hamriyah Free Zone offers a strategic location, a business-friendly environment, and numerous benefits that make it an attractive destination for business setup. This comprehensive guide will walk you through the process, benefits, costs, and requirements of starting a business in Hamriyah Free Zone in 2024.

What is the Hamriyah Free Zone?

Hamriyah Free Zone (HFZ) is one of the leading free zones in the United Arab Emirates (UAE), located in the Emirate of Sharjah. In 1995, HFZ was created to promote industrial and commercial activities in the region by offering a business-friendly environment and attractive incentives for investors. It is managed by the Hamriyah Free Zone Authority (HFZA), which oversees the operations and development within the free zone.

HFZ spans over 22 million square meters and is strategically positioned near the Arabian Gulf, providing easy access to global shipping routes. The free zone is home to thousands of businesses across various sectors, including manufacturing, trading, logistics, and service industries. Its state-of-the-art infrastructure, modern facilities, and comprehensive services make it a preferred choice for local and international investors seeking to establish a presence in the UAE.

History of Hamriyah Free Zone

Hamriyah Free Zone was established in 1995 with the vision of transforming Sharjah into a hub for industrial and commercial activities. Over the years, HFZ has grown significantly, attracting a diverse range of industries and businesses. The free zone has continuously expanded its infrastructure and services to meet the evolving needs of businesses, contributing to the economic development of the Emirate of Sharjah and the UAE as a whole.

The Advantages of Setting Up in Hamriyah Free Zone

One of the primary reasons businesses choose to establish themselves in the Hamriyah Free Zone is the array of benefits it offers. These include:

Strategic Location

Hamriyah Free Zone is strategically located between three continents—Europe, Asia, and Africa—making it an ideal hub for international trade. Its proximity to Sharjah International Airport and major seaports further enhances its logistical advantages.

Business-Friendly Environment

HFZ provides a business-friendly environment with simplified procedures, minimal bureaucratic hurdles, and a streamlined setup process. This allows businesses to focus on growth and operations rather than administrative challenges.

100% Foreign Ownership

One of the most significant advantages of the Hamriyah Free Zone is the allowance for 100% foreign ownership. This means that foreign investors can fully own and control their businesses without the need for a local partner.

Tax Benefits

Hamriyah Free Zone offers several tax incentives, including zero corporate tax, zero personal income tax, and no import or export duties. These benefits contribute to significant cost savings for businesses.

Diverse Business Activities

HFZ supports a wide range of business activities, including trading, manufacturing, services, and industrial operations. This diversity allows entrepreneurs to explore various business opportunities within the same free zone.

Modern Infrastructure

The free zone boasts state-of-the-art infrastructure, including warehouses, industrial units, offices, and plots of land for development. These facilities are designed to meet the needs of different types of businesses.

Step-by-Step Guide to Starting a Business in Hamriyah Free Zone

Setting up a business in Hamriyah Free Zone involves several key steps. Here’s a detailed guide to help you navigate the process:

Determine Your Business Activity

The first step in setting up a business in HFZ is to determine your business activity. This will influence the type of license you need and the setup process. Hamriyah Free Zone offers various licenses, including:

• Trading License: This is for businesses involved in trading activities.
• Industrial License: For manufacturing and industrial operations.
• Service License: For service-oriented businesses.
• Commercial License: For general trading and commercial activities.

Choose a Legal Structure

Next, you need to choose a legal structure for your business. The options include:

• Free Zone Establishment (FZE): A single shareholder limited liability company.
• Free Zone Company (FZC): A company with 2 to 5 shareholders.
• Branch of a Foreign Company: An extension of an existing foreign company.

Select Your Business Name

Choosing a business name is a crucial step. Ensure that the name complies with HFZ’s naming regulations, which typically prohibit offensive language, religious references, and names of well-known brands.

Apply for Initial Approval

Submit an application for initial approval to the Hamriyah Free Zone Authority (HFZA). This step involves providing basic information about your business, including its name, legal structure, and proposed activities.

Submit Legal Documents

Prepare and submit the required legal documents. These may include:

• Passport copies of shareholders and directors
• Proof of residence
• Business plan
• No Objection Certificate (NOC) from the current sponsor (if applicable)

Lease Office or Warehouse Space

Depending on your business activity, you will need to lease office or warehouse space in the Hamriyah Free Zone. HFZ offers a variety of options to suit different business needs and budgets.

Obtain a Business License

Once your application and documents are approved, you will receive your business license. This license allows you to legally operate your business in the Hamriyah Free Zone.

Open a Corporate Bank Account

Open a corporate bank account in the UAE to facilitate your business transactions. Most banks in the UAE require a business license and other corporate documents to open an account.

Cost of Starting a Business in Hamriyah Free Zone

The cost of starting a business in the Hamriyah Free Zone varies depending on several factors, including the type of license, office space, and additional services required. Here’s a breakdown of the typical costs:

License Fees

• Trading License: AED 9,000 – AED 12,000
• Industrial License: AED 15,000 – AED 18,000
• Service License: AED 7,000 – AED 10,000
• Commercial License: AED 10,000 – AED 13,000

Office Space Rental

• Shared Office: AED 15,000 – AED 20,000 per year
• Dedicated Office: AED 25,000 – AED 35,000 per year
• Warehouse: AED 50,000 – AED 70,000 per year

Additional Costs

• Visa Fees: AED 3,000 – AED 5,000 per visa
• Document Attestation and Translation: AED 1,000 – AED 2,000
• Bank Account Opening: AED 500 – AED 1,500

Hamriyah Free Zone Business License Types

Hamriyah Free Zone offers various business license types to cater to different business activities. Understanding these license types will help you choose the right one for your business:

Trading License

A Trading License allows businesses to import, export and trade goods specified in the license. This is ideal for businesses involved in wholesale and retail trading.

Industrial License

An Industrial License is required for businesses involved in manufacturing and industrial activities. This license permits the production, packaging, and processing of goods.

Service License

A Service License is suitable for businesses that provide services such as consultancy, IT services, marketing, and other professional services.

Commercial License

A Commercial License is a versatile license that covers a wide range of trading and commercial activities, allowing businesses to engage in multiple business activities under one license.

Legal Requirements for Hamriyah Free Zone Company Setup

Meeting the legal requirements is crucial for a successful business setup in the Hamriyah Free Zone. Here are some of the key legal requirements:

Shareholders and Directors

Your company must have at least one shareholder and one director. Shareholders can be individuals or corporate entities, and there is no restriction on the nationality of shareholders and directors.

Minimum Capital Requirement

There is no minimum capital requirement for setting up a business in the Hamriyah Free Zone. However, you may need to show proof of sufficient funds to cover your initial setup and operational costs.

Physical Presence

While you don’t need to be physically present in the UAE to set up your business, you will need to visit the UAE to open a corporate bank account and complete other formalities.

Office Space Lease Agreement

You must lease office or warehouse space within the Hamriyah Free Zone. The lease agreement is a mandatory requirement for obtaining your business license.

Compliance with UAE Laws

Your business must comply with all UAE laws and regulations, including labor laws, health and safety regulations, and environmental laws.

How to Get a Business License in Hamriyah Free Zone

Hamriyah Free Zone (HFZ), located in Sharjah, UAE, offers an attractive destination for businesses looking to establish a presence in the region. Known for its strategic location, robust infrastructure, and investor-friendly policies, HFZ provides a seamless process for obtaining a business license. Here’s a comprehensive guide to help you navigate the steps to secure your business license in Hamriyah Free Zone in 2024:

Step 1: Submit an Application

The first step is to submit an application to the Hamriyah Free Zone Authority (HFZA). The application form requires detailed information about your business, including:

• Business Activity: Specify the nature of your business activities. HFZA offers various types of licenses such as Industrial, Commercial, Service, and E-Commerce.
• Legal Structure: Decide on the legal structure of your business, whether it’s a Free Zone Establishment (FZE), Free Zone Company (FZC), or a branch of an existing company.
• Shareholders: Provide details of the shareholders, including their personal information and percentage of ownership.

Step 2: Provide Required Documents

Prepare and submit the necessary legal documents. The specific documents may vary depending on the type of license and the legal structure of your business. Commonly required documents include:

• Passport Copies: Passport copies of the shareholders and managers.
• Proof of Residence: Recent utility bills or other documents proving the residence of the shareholders.
• Business Plan: A detailed business plan outlining your business model, target market, and financial projections.
• Bank Reference Letter: A reference letter from your bank indicating a good banking relationship.
• Board Resolution: If applicable, a resolution from the board of directors approving the establishment of the business in HFZ.

Step 3: Choose Office Space

Selecting the appropriate office or warehouse space is a crucial step in the process. HFZA offers a variety of facilities, including:

• Office Space: Furnished and unfurnished office spaces to suit different business needs.
• Warehouses: State-of-the-art warehouse facilities for industrial and logistics businesses.
• Plots of Land: Customizable plots for larger industrial projects.

Once you have chosen your space, you will need to sign a lease agreement, which is a necessary document for license issuance.

Step 4: Obtain Initial Approval

After submitting your application and required documents, HFZA will review them. Upon satisfactory review, you will receive initial approval. This approval indicates that you can proceed with the next steps in setting up your business. The initial approval typically covers:

• Verification of Business Activity: Ensuring that your proposed business activities comply with HFZA regulations.
• Document Verification: Checking the authenticity and completeness of the submitted documents.

Step 5: Make Payment

Once you receive initial approval, you will need to pay the required fees. The fees can vary depending on the type of license, office space, and additional services you may require. Common fees include:

• License Fee: The cost of the business license.
• Office Lease Fee: Payment for leasing the office or warehouse space.
• Registration Fee: One-time fee for registering your business in HFZ.

Make sure to review the fee structure carefully and ensure timely payment to avoid any delays.

Step 6: Receive Business License

After the payment of fees, you will receive your business license. The business license is your official document that allows you to legally operate within Hamriyah Free Zone. With the license in hand, you can start your business operations, open a corporate bank account, and apply for visas for your employees.

Additional Considerations

• Visa Services: HFZA offers visa services to facilitate the entry and residence of your employees and their families.
• Renewal: Business licenses in HFZ are typically valid for one year and need to be renewed annually. Ensure that you stay on top of renewal dates to avoid penalties.
• Support Services: HFZA provides various support services, including administrative support, business networking opportunities, and access to business development programs.

Hamriyah Free Zone Company Setup Consultants

Setting up a business in Hamriyah Free Zone can be complex, especially for first-time entrepreneurs. Engaging the services of professional business setup consultants can simplify the process and ensure compliance with all legal requirements. Here are some of the benefits of hiring consultants:

Expertise and Experience

Business setup consultants have extensive knowledge and experience in setting up businesses in Hamriyah Free Zone. They can provide valuable insights and guidance throughout the process.

Time and Cost Efficiency

Consultants can help you save time and reduce costs by streamlining the setup process and avoiding common pitfalls. They handle the paperwork and administrative tasks, allowing you to focus on your core business activities.

Legal Compliance

Consultants ensure that your business setup complies with all legal and regulatory requirements. This minimizes the risk of delays or legal issues down the line.

Tailored Solutions

Professional consultants offer tailored solutions based on your business needs and objectives. They can help you choose the right legal structure, license type, and office space for your business.

Future Prospects

Looking ahead, Hamriyah Free Zone is poised for continued growth and development. With ongoing infrastructure projects and strategic initiatives, HFZ aims to enhance its attractiveness as a business destination and support the expansion of existing businesses. The free zone plans to further diversify its offerings and attract new industries, leveraging its strategic location and investor-friendly policies.

HFZ’s commitment to innovation, sustainability, and business excellence positions it as a key player in the region’s economic landscape. As global trade dynamics evolve, Hamriyah Free Zone remains steadfast in its mission to provide a conducive environment for businesses to thrive and succeed.

Unlocking Your Business Potential in Hamriyah Free Zone with GCS Group

Hamriyah Free Zone stands as a cornerstone of economic growth and development in the UAE, offering businesses a strategic gateway to regional and international markets. Whether you’re a startup looking to establish a presence or an established company seeking expansion opportunities, HFZ provides the essential infrastructure, incentives, and support necessary to achieve your business goals.

At GCS Group, we specialize in business setup services in Dubai, with a dedicated focus on Hamriyah Free Zone. Our expert team is committed to guiding you through every step of the setup process, from initial consultation to obtaining your business license. With our in-depth knowledge of HFZ regulations and procedures, we ensure a smooth and efficient setup experience, allowing you to focus on growing your business.

Contact GCS Group today to explore how we can help you harness the full potential of your business in Hamriyah Free Zone. Let us be your partner in success as you embark on this exciting entrepreneurial journey.