Business Setup in Hamriyah Free Zone - Hamriyah Free Zone (HFZ) is managed by Hamriyah Free Zone Authority (HFZA) established by an ‘Emiri Decree’ issued on 12th November 1995. Today, investors from different parts of the world are eager to setup their regional business hub in HFZ. The free zone is located in Sharjah, the pre-eminent industrial base of UAE. Sharjah is located in a strategic position between three continents with access to a growing market of more than 2 billion people.
Sharjah is the only one emirate in UAE with ports on the west coast and east coast of Arabian Gulf with direct access to Indian Ocean. The presence of Sharjah International Airport and well developed road network connects Sharjah to the rest of the world. In addition to that modern infrastructure facilities available in Sharjah and its Free Zones – Sharjah Airport International Free Zone and Hamriyah Free Zone act as a catalyst to the industrial growth of Sharjah and UAE.
The unique location advantage and easy access to well-developed sea ports, airport and road network place Hamriyah Free Zone in an enviable position before investors who are planning to setup their business in UAE. Over the last two decades of operation, Hamriyah Free Zone has emerged as the cornerstone of UAE’s industrial development. In its continuous endeavor to develop as next generation free zone, HFZ is continuously upgrading its infrastructure, business setup procedures, investor friendly policies and environment.
Advantages of Business Setup in Hamriyah Free Zone - HFZ
In addition to the location advantage, Hamriyah Free Zone offers a number of trade, investment, tax incentives and facilities to investors. Business setup in HFZ is a wise decision because of the following advantages:
Trade & Investment Advantages
Strategic location to access global markets
Access to the UAE and GCC markets
Attractive investment incentives
Abundant and inexpensive energy
Land for lease for investor development
Purpose built office accommodation, warehousing and factory units
Three seaports and international airport
Favorable low cost living conditions
Low labour costs
100% Foreign ownership
100% Import and Export tax exemption
100% Exemption from all commercial levies
100% Repatriation of capital and profits
25 years’ lease, renewable for a further 25 years
Tax Incentives for Business Setup in Hamriyah Free Zone
No corporate profits tax
No personal income tax
SME Zone in Hamriyah Free Zone for encouraging Small and Medium Business Setup
The significance of SMEs in employment generation, economic development, industrial growth, GDP growth and Per Capita Income growth is well accepted all over the world. Globally SMEs account for 99% of business numbers and up to 50% of GDP.
Recognizing the greater significance of SMEs Hamriyah Free Zone has developed an SME Zone for nurturing, developing and strengthening SMEs. To support this important sector of the economy Hamriyah Free Zone has cobbled together a common sense solution for SMEs. An area of approximate 10 million m² in HFZ phase II is leveled and dedicated for 7 magnificent sub-zones or industries which is supported by the excellent deep and inner harbor facilities in Phase I.
In addition to the key support tools aforesaid Hamriyah Free Zone provides preferential economic treatment for the SMEs in terms of discounted lease rents. The land rate is AED 30 (approximately USD 8.22) per m2 per year, fixed for first 5 years. Throughout these good 5 year they are given rent holidays of 2 months every year.
The 7 Magnificent Zones in Hamriyah Free Zone are Oil & Gas Zone, Petrochemical Zone, Steel City, Construction World, Timber Land, Maritime City and Perfume Land complimented by E-Office packages.
The Hamriyah Free Zone Logistic Village – HFZA has developed a logistic village to provide an all-in-one logistics and distribution center for companies operating in HFZA.
The Hamriyah Free Zone Micro Business Zone (MB Zone) – HFZA has initiated MB Zone for the development of micro business units.
Legal Forms for Business Setup in Hamriyah Free Zone
Free Zone Establishment (FZE) – a single shareholder limited liability company with minimum share capital of AED 150, 000. Both individuals and artificial juridical persons like companies can become shareholders.
Free Zone Company (FZCo) – a limited liability company with multiple shareholders. Both individuals and artificial juridical persons like companies can become shareholders.
Branch of a Local Company – a company registered in UAE can setup a branch in HFZ. No capital deposit in bank is required.
Branch of a Foreign Company - a company registered outside UAE can also setup a branch in HFZ. No capital is required to be deposited in Bank.
Types of License issued in Hamriyah Free Zone (HFZ)
Three types of license are issued for Business Setup in Hamriyah Free Zone (HFZ). The license type is dictated by the business activity selected by the investor and approved the Hamriyah Free Zone.
The types of license are:
Industrial License - This license allows the licensee to engage in industrial and manufacturing activities. It entitles the license holder to import raw materials for manufacturing, processing and/or assembly of specified products and exporting the finished goods.
Commercial License - This license entitles the licensee to import, export, sell, distribute and store items specified on the license.
Service License - This license allows the holder to carry out the services which are specified on the license within the Hamriyah Free Zone only.
Note: A free zone entity can sell products in the UAE local market only through a local distributor or agent.
Facilities in Hamriyah Free Zone for Business Setup
Office Units – carpeted, un-furnished, air-conditioned office units ranging from 15 sq. m. to 42 sq. m. area. Internet, conferencing and house-keeping facilities are available. The lease includes charges for water, electricity, air conditioning and parking.
Land – HFZA manages a free zone area of more than 12 million sq. m. of industrial, commercial land. Plots from 2500 sq. m. are available for 5 years’ lease which is renewable.
Pre-built Warehouses – suitable for those investors who require ready-made, ready-to-go warehouse space. HFZ provides the investors with a choice of pre-built warehouses in sizes of 614 m2, 416 m2 and 276 m2. These warehouses are suitable for storage, assembling and light manufacturing activities.
Harbor - Hamriyah Free Zone’s 14m deep water harbor comfortably accommodates LPG and bulk handling vessels.
Accommodation City - for those investors who need on-site housing facilities for their workers. Different types of accommodation facilities are available in Phase I and Phase II.
Mr. Baiju Masoodu is a Free Zone Business Set-up Consultant. Our ‘corporate service company’ can advise and assist you to set-up a business in Hamriyah Free Zone and other Free Zones in Dubai and UAE. For a free consultation & cost estimate, call me on: +971 50 214 1476 or mail me at: firstname.lastname@example.org
Hamriyah Free Zone