Hamriyah free zone (HFZA) business Setup
Pricing For – (HFZA) Hamriyah Free Zone
About Hamriyah Free Zone (HFZA)
Hamriyah Free Zone is the second-largest industrial free zone in the UAE, covering an area of 26 million square meters.
The free zone is currently home to more than 6,500 businesses from 163 countries and provides office, warehouse, and factory spaces, along with a harbour.
Prices starting from AED 9,000
Average business setup time: 5-7 days
Benefits of setting up a company in - Hamriyah Free Zone
Strategic Location
- The Hamriyah Free Zone is situated where three major transport hubs meet.
Range Of Activites
- Hamriyah Free Zone welcomes activities under commercial, e-commerce, service, and trading licenses.
100% Business Ownership And Capital Reptriation
- As an expatriate, you can own 100% of the company and remit all profits to your home country.
Fully Serviced
- Hamriyah Free Zone provides 15 essential on-site business services, including banking, auditing, and much more.
Fully Equipped
- Hamriyah Free Zone is built for businesses of all sizes, land for development, and even a port.
Hamriyah Business Activities
Hamriyah Free Zone is a great place for various financial and professional business activities. Here are some of the most popular options available:
Event Management
Trading
Trading
Travel
Import/Export
Veterinary Services
Manufacturing
Assembly
Health and Fitness
Marketing
HR
HR
Packaging
E-commerce
Hospitality Services
Fabrication
Physical Presence Requirement
You do not have to be physically present to complete the setup process of your company.
A Guide to Hamriyah Free Zone Company Formation
Did you know that the UAE issues over 50,000 business licenses every year? And that’s not even touching on all the license renewals that they issue to already existing companies. The UAE is a popular destination for entrepreneurs looking to set up their businesses, whether it is in the bustling city of Dubai or one of the free zones.
If you’re considering starting your own business, setting up a company in the Hamriyah Free Zone could be a great option. In this zone, you can enjoy various benefits and incentives. Let’s take a closer look at what you need to know about starting a business in the Hamriyah Free Zone.
What Is the Hamriyah Free Zone?
Before we delve into the details of setting up a business in the Hamriyah Free Zone, let’s understand what it is. This free zone was established by the Emirate of Sharjah in 1995 and is the only emirate that offers businesses access to both the east and west coasts of India, making it an ideal location for businesses.
Operating in the Hamriyah Free Zone offers numerous benefits to companies. Firstly, the Hamriyah Free Zone Authority provides several incentives to all business owners, such as tax exemptions and land leases.
In addition, the requirements for company formation in the Hamriyah Free Zone are quite minimal, making it easy for entrepreneurs to start a business with little barriers to entry. It is an excellent choice for upcoming entrepreneurs looking to start a new project.
Currently, the government allows the following industries to operate in this free zone:
- SMEs
- Recycling
- Building Materials
- Logistics and Transportation
- Oil and Gas
- Textile
- Textile
- Timber
- Heavy Industry
- Food
- Packaging
- Petrochemical
- Perfume and Cosmetics
- Steel
- Perfume and Cosmetics
Types of Hamriyah Companies
It’s important to understand what types of companies can set up shop in the Hamriyah Free Zone. While most businesses are eligible, not all of them are.
Foreign enterprises called free zone establishments (FZE) and free zone companies (FZC) can launch operations in this free zone. The main difference between these two types of companies is that FZEs have one shareholder, whereas FZCs can have up to five shareholders.
If you are not a resident of the UAE, one of the directors in the company can act as the secretary. Therefore, you can have only one director living in the United Arab Emirates.
Benefits of Starting a Company in the Hamriyah Free Zone
There are numerous reasons why you should consider establishing a company in Hamriyah or any other free zone in the UAE. If you are contemplating starting your own company in Hamriyah but have not yet made a decision, the following advantages should persuade you that you are on the right path.
Full Ownership
One of the key advantages of setting up a business in the Hamriyah Free Zone is that you can have complete foreign ownership of your company. You won’t be required to share the ownership with a sponsor or be concerned about selling off shares to investors, even if you aren’t a resident of the UAE.
No Duties
Business owners who start a company in the Hamriyah Free Zone can benefit from no export, re-export, or customs duties, as well as several special VAT incentives.
Renewable Leases
In Hamriyah, you have access to renewable leases regardless of whether you’re looking for a short- or long-term lease. Plus, those lease rates are fixed for the first 10 years.
As part of those contracts, investors can develop their plots for up to 60% of their revenue. That makes an easy way for you to create the type of business that you have in mind.
Easy Market Access
The Hamriyah Free Zone is located in a strategic area, providing access to both the UAE and GCC markets. Additionally, it has access to an inner harbour and port, making import and export activities easier.
Fast Online Processes
Getting your applications processed in the Hamriyah Free Zone is quick and easy. You can apply for visas and renewals online, which shortens the turnaround time.
Moreover, these processes are fast, with the business setup process taking only one hour to complete.
Great Infrastructure
The Hamiryah free zone has excellent infrastructure for telecommunications, electricity, water, and roads, facilitating easy communication with your business partners.
Documents Needed for Starting a Hamriyah Free Zone Company
Congratulations on your decision to start a business in the Hamriyah-free zone! This move will provide you with numerous benefits of running a company from this location.
Before you begin your entrepreneurial journey, you need to gather some essential documents. These include:
- A copy of your passport and those of any shareholders
- A certificate of good standing and certificate of incorporation
- Personal bank statement
- The Articles of Association (AOA) and the company memorandum
- A letter confirming the company's representatives
- A copy of your UAE visa
- A signed registration application
- A passport photo
- Approval of your business activity and name
- Signed legal papers
Once you have all these documents, you can apply for your business license and start your new venture!
Types of Business Licenses in the Hamriyah Free Zone
When you register for a business license in the Hamriyah Free Zone, you’ll need to apply for a business license. There are three types of business licenses that you can apply for commercial, industrial, and service.
Industrial License
An industrial license allows businesses to import raw materials and manufacture goods for sale in the UAE market.
Service License
Business owners can only operate within the Hamriyah Free Zone if they have a service license that specifies the services they can provide.
Commercial Market
A commercial license permits businesses to import, export, distribute, store, and sell items. The license also allows 3-5 general trading activities, and specific trading and e-commerce activities.
How to Start a Business in the Hamriyah Free Zone
Starting a business in the Hamriyah Free Zone is a straightforward process. Once you have all the necessary information, you can begin the business setup process. One of the reasons why many people choose to start businesses in the UAE is because of its simple and fast business setup procedures. In this regard, let’s examine the process and how it relates to the Hamriyah Free Zone.
1.Choose Your Business Entity
The first step to starting your company in the Hamriyah Free Zone is to choose what type of business entity you’ll work under. Remember that you can choose to either run a free zone establishment or to open a free zone company.
2.Select a Business Activity and License
Next, It is important to carefully select your business activity as it will determine the type of business license you will need to apply for – commercial, industrial, or service.
3.Register Your Trade Name
Once you have decided on the type of license you want to apply for, the next step is to register your trade name. You can do this by registering with the Sharjah Department of Economic Development.
To ensure that your trade name is approved, it must not be similar to any other existing companies in the UAE. The government provides an official list of companies that you can use to check whether your chosen name has already been taken.
4.Get Pre-Approval
The next big step in starting your Hamriyah Free Zone company is to obtain pre-approval from the Department of Economic Development (DED) for your business. To obtain pre-approval, you must complete an application form and submit it along with your documents to the DED.
If you receive pre-approval, you will be invited to proceed with the application process to open your business.
5.Get Approved
The final step of the process is to fill out the form, submit your documents, and wait for approval for your company. Once you submit these documents, you’ll have to wait for approval. When your business gets approved, you’ll receive a Certificate of Incorporation as well as your business license.
Making Company Amendments
Sometimes, you may need to modify your company’s official documents due to various reasons such as change in the corporate name, directorship, share transfers, or any other change of activity.
To make these amendments, you can either do it on your own or seek assistance from someone who holds a power of attorney. However, regardless of who makes the changes, you will need to submit the relevant documents to the DED for approval.
Hamriyah Free Zone License Renewal
It’s important to note that just getting your business license approved in the Hamriyah Free Zone doesn’t mean you can work there indefinitely. You will need to renew your license annually.
When renewing your license, you must submit an audit report to the government. This requirement starts from the third year of your business.
However, if you prefer not to go through the renewal process, you can sign a waiver. Keep in mind that if you choose to do so, you’ll need to pay an AED 1,000 fee and forgo submitting your audit report.
What to Know About Hamriyah Business Liquidation
While most people keep their Hamriyah businesses open for generations, there may be situations where you need to liquidate your company. To do this, you must first cancel your visa and ID card. Then, cancel your lease and obtain customs clearance for your licenses. After that, deregister your business license.
The time required to complete the liquidation process depends on the type of property you rented. Flexi-offices can be cancelled in one day, while warehouses require three months for cancellation.
The cost of the entire liquidation process is AED 6,000. However, any deposits paid on your leased land will be refunded upon closing the company.
How to Get a Hamriyah Free Zone Visa
Starting a company in the Hamriyah Free Zone requires obtaining a visa, which is fortunately flexible in terms of type and quantity in this free zone. For instance, if you’re opening a warehouse facility, you can obtain up to 50 visas.
Additionally, the business owner can get a visa for their partner that’s valid for three years.
To obtain a visa, you’ll need to undergo a medical check and complete an Emirates ID application, both of which must be done within the Hamriyah Free Zone itself and cannot be processed outside the company.
Once your visa and ID card are approved, they will be delivered by the government to the Emirates Post Office in the Hamriyah Free Zone, which typically takes up to two weeks.
Get Started With Hamriyah Free Zone Company Formation
With this guide, Hamriyah Free Zone company formation becomes a breeze. You’ll be prepared to tackle the process from start to finish and to get your company up and running without a hitch.
So, are you ready to get to work? Connect with Gulf Gateway CSP, and we’ll help you start your journey to launching a successful business in the Hamriyah Free Zone.
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United Arab Emirates
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