Hamriyah Free Zone Sharjah | Free Zone Company Incorporation

Hamriyah Free Zone Sharjah has a unique site. Technically speaking, it is located in the emirate of Sharjah in United Arab Emirates. Beyond the mainland of Sharjah, however, one need to notice that the emirate has some territories under its governance. One such territory is Hamriyah. Geographic site of Hamriyah is between the emirates of Ajman and Umm Al Quwain. Hamriyah Free Zone boasts around 22 million square meters of prime industrial and commercial land.
Hamriyah Free Zone Sharjah Company Incorporation

What are the advantages offered by Hamriyah Free Zone?

Investors in Hamriyah Free Zone can enjoy the general investment environment in United Arab Emirates. The general advantages include the following.

  • 100% foreign ownership in Free Zone company setup.
  • 100% exemption on import and export taxes.
  • 100% exemption from all commercial levies.
  • 100% repatriation of capital and profits.

Other advantages offered by Hamriyah Free Zone include the following.

  • Land lease for 25 years renewed for similar period.
  • Steady land lease over the first five years.
  • Possible to get a license within 24 hours of submitting all required documents.
  • Easy to get the employment and guarantee documents.
  • Economical workforce
  • No restrictions on employing foreign labor.
  • Pre-built warehouses and office units for lease.
  • International business center with 100 integral office units equipped with conferences services.
  • On-site accommodation for investor’s personnel
  • Recreation center and health club.
  • Highly developed infrastructure and telecommunication facilities
  • Access to three sea ports on both coasts.
  • Abundant and inexpensive energy.

What are the types of entities allowed in Hamriyah Free Zone?

Investors can form three types of entities in Hamriyah Free Zone.

  • Free Zone Establishment (FZE)
  • Free Zone Company (FZC)
  • Branch of a foreign / local company

Free Zone Establishment (FZE).

A Free Zone Establishment (FZE) is a single share holder limited liability company which can be incorporated in Hamriyah Free Zone. The smallest capital needed for incorporating a Free zone Establishment (FZE) is AED 150,000 (about US$ 40,000).

Free Zone Company (FZC).

Free Zone Company (FZC) is a similar incorporation like the Free Zone Establishment with multiple share holding (maximum 5 shareholders). An FZE or FZC is a limited liability company.

Branch of a foreign or local company.

A foreign or local company can register its branch in Hamriyah Free Zone.

There are some important points you would need to consider while incorporating a Free Zone Establishment (FZE) or Free Zone Company (FZC).

  • Natural persons and juristic persons (corporate entities) can register a FZE or FZC.
  • The registration / incorporation charge is around US $ 2466.
  • FZE / FZC, like branches of local or foreign companies, will have to get a Free Zone license after incorporation / registration.
  • The smallest share capital for FZE/ FZC is US$ 40,000.
  • An FZE Shares shall be in multiples of US$ 40,000, and an FZC Shares shall be in multiples of US$ 274.
  • No share transfer without prior written approval of Hamriyah Free Zone Authority.

What are the documents required for company registration in Hamriyah Free Zone?

The documents required for company registration in Hamriyah Free Zone vary depending on the type of investor.

Individual owners.

  • Personal details of the owner (copy).
  • Bank’s reference (original).
  • Letter of appointment for the manager with specimen signature (notarized) along with his passport copy.
  • A letter of appoint the proxy with a form of his authorized signature (notarized copy) and a copy of his passport.

Corporate owners.

  • Certificate of incorporation or registration of the company (notarized).
  • Memorandum and Articles of Association of the company (notarized copy).
  • Board resolution for opening a branch in Hamriyah Free Zone and to appoint the manager for the Free Zone operations (notarized copy).
  • Bank’s reference letter about creditworthiness of the company (original).
  • Letter of Appointment for the manager with specimen signature (notarized) along with his passport copy.
  • A letter of appointment of the proxy with a form of his authorized signature (notarized copy) and a copy of his passport.

Branch of a Local / International company

  • License or Certificate of Commercial Registration from the Economic Department (notarized copy) for the local company and Certificate of Incorporation / Good-standing (notarized copy).
  • Memorandum and Articles of Association of the company (notarized copy).
  • Board resolution for opening a branch in Hamriyah Free Zone and to appoint the manager for the Free Zone operations (notarized copy).
  • Bank’s reference letter on creditworthiness of the company (original).
  • A letter of appoint the manager for the Free Zone operations with a form of his authorized signature (notarized copy) and a copy of the manager’s passport.
  • A letter of appoint the proxy with a form of his authorized signature (notarized copy) and a copy of his passport.

What are the other major legal requirements in Hamriyah Free Zone Sharjah?

  • Free Zone Establishments (FZE) / Free Zone Company (FZC) should abide by the FZE / FZC rules and regulations. FZE rules and regulations are equal to its Memorandum and Articles of Association where as FZC rules and regulations are equal to its Articles of Association.
  • FZE / FZE should give its audited financial statements to Hamriyah Free Zone Authority every year within 3 months from the end of the financial year.
  • There should be at least 2 Directors and a Secretary for FZE / FZC’s.
  • At least one of the Directors and the Secretary must be residents.
  • An individual can hold the offices of both Director and Secretary.

What is the procedure to setup a Free Zone company in Hamriyah Free Zone Sharjah?

  • An application (has format of Memorandum also) needs to be submitted with documents.
  • On Approval of the project, Hamriyah Free Zone Sharjah will issue a letter to a bank in United Arab Emirates according to the choice of the investor. This letter will help the investor to open a corporate bank account in the name of the FZE / FZC. The investor can deposit the least capital into this bank account of the company. (In United Arab Emirates, there are a number of banks in which investors can open corporate bank account. We will try to discuss the subject of corporate bank account in United Arab Emirates separately in our future blog posts. Meanwhile, if you need any help with bank account opening you can definitely contact us.)
  • On production of bank’s letter for receiving the least capital in the new FZE / FZC bank account Hamriyah Free Zone will issue a FZE / FZC Certificate of Incorporation after signing the agreement.
  • The Investor can start withdrawing the amount for his business on submission of original Certificate of Incorporation to the bank.

What is the cost of incorporating a business in Hamriyah Free Zone Sharjah?

Approximate cost of setting up a company in Hamriyah Free Zone is given in the tables below. However, note that these are indicative figures only. If you wish to have exact details on company formation in Hamriyah Free Zone, you may please contact us.

Cost of Licenses in Hamriyah Free Zone

DescriptionFees in AEDFees in USD
Industrial License2,750750
Commercial License (5 Items)2,750750
General Trading License (more than 5 Items)12,0003,270
Service License2,750750
Incorporation – FZE & FZC (one time fee)9,0002,460

Hamriyah Free Zone Sharjah: Office Rent Details

Office Area (Sqm)Lease Rate / Sqm (AED)Rent (AED)Approximate License Fee (AED)Other Charges (AED)Refundable Deposit (AED)
151,07517,0002,7504,2802,500
201,07521,5002,7504,2802,500
251,20042,5002,7504,2802,500
411,20069,7002,7504,2802,500

Hamriyah Free Zone Sharjah: Warehouse Rent

Warehouse Area (Sqm)Rent (AED)License Fee (AED)Other Charges (AED)Refundable Deposit (AED)
27575,0002,7504,2805,000
30780,0002,7504,2805,000
41695,0002,7504,2805,000
614130,0002,7504,2805,000
Leave a Reply

Your email address will not be published. Required fields are marked *

3 × 3 =

99 − 92 =