Located in Sharjah, the Hamriyah Free Zone is one of the largest industrial zones in the UAE. The environment of business setup in the Hamriyah Free zone is highly conducive for industrial activities such as manufacturing, assembling, packaging etc. The free zone has the right set of regulations, infrastructure, licenses and modern facilities to facilitate the formation of industrial businesses. Moreover, Hamriyah free zone is often credited for making Sharjah an industrial powerhouse in the region.

Business setup consultants in Sharjah recommend Hamriyah Free Zone to foreign investors due to reasons such as the free zone’s strategic location, 100% foreign ownership, easy setup procedure and world-class facilities such as pre-built warehouses, office spaces etc. Launched in 1995, the Free Zone has attracted 6,500 plus companies from around 163 countries. Apart from industrial activities, Hamriyah free zone also offers licenses to consultancy services and e-commerce companies. Read ahead to know further about company formation in Hamriyah Free Zone.

Types of Licences in Hamriyah Free Zone 

To initiate the process of business setup in Hamriyah, foreign investors are required to obtain a license based on their preferred business activity. Based on the activities, the free zone authority issues the following types of licenses:

Commercial License 

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    By obtaining a commercial license from Hamriyah Free Zone, the investors can import, export, sell, distribute and store goods that are allowed on the license. As per UAE laws, the free zone companies are not allowed to trade directly in the local market. This means the commercial license holder is required to appoint a local agent or local distributor if he wants to sell finished products in the UAE market. Advice on the activities allowed in this license can be gathered from the best business setup consultants in Sharjah.

    Service License 

    Though people generally associate the process of business setup in Hamriyah with heavy industrial activities, the Free zone is also home to a large number of service businesses. The service license provided by the Hamriyah Free Zone allows the entrepreneurs to carry out the specific services mentioned in the license. Business setup consultants in Sharjah are the best help the investors can avail of if they are seeking to obtain a license without any hassle.

    Industrial License 

    Hamriyah Free zone’s industrial license is best suited for investors who seek to import raw materials for manufacturing, processing and/or assembling products. Investors are normally allowed to export the finished products outside the UAE. In case, entrepreneurs are seeking to sell the finished product in the UAE market, they can do it through a local distributor or local agent only. Getting an industrial license involves certain procedures and approvals but it can be done quickly with the help of the best company formation advisers in Sharjah.

    Types of Legal Structures allowed in Hamriyah  

    There are three types of company formation in the Hamriyah Free Zone that are determined as per the number of shareholders. The following legal structure can be incorporated into Hamriyah Free Zone,

    Free Zone Establishment 

    A Free Zone Establishment (FZE) can be set up in Hamriyah Free Zone with a single shareholder. The procedures and legal requirements of FZE incorporation would be taken care of by the best business setup consultants in Sharjah.

    Free Zone Company 

    Unlike the FZE, a Free Zone Company (FZCO) business setup in Hamriyah Free Zone allows foreign investors to have up to 5 shareholders. The investors need to be aware of the free zone regulations that govern the setup procedures but the process turns easy once they hire experienced company formation specialists in Sharjah, UAE.


    Local UAE companies, as well as foreign companies, can set up their branch in the Hamriyah Free Zone. The branch is not an independent legal entity separate from the parent company. The branch may carry out all or some of the activities of its parent firm.

    Benefits of Company Formation in Hamriyah Free Zone 

    Hamriyah Free zone is generally tagged as an investor-friendly free zone providing unparalleled advantages to the businessmen who wish to set up a company in Sharjah Free Zone. The prime benefit the free zone offers to the investors comes in the form of the strategic location. The foreign investors engaged in import or re-exports can have the logistic benefit of smooth access to three seaports, Sharjah International Airport and the “Sharjah link” corridor.  The other advantages of starting a business in Hamriyah Free Zone are:

    1. Less-stringent Regulations
    2. Modern infrastructure and telecommunication links
    3. Pre-built warehouses and office units for lease
    4. Premium office suites for lease in the International Business Center
    5. On-site accommodation for personnel employed by the investor
    6. Low labour cost
    7. Strategic access to global markets
    8. Reasonable cost of living in Sharjah

    Process of Business Setup in Hamriyah Free Zone 

    The process of business setup in Hamriyah Free Zone is fairly straightforward if the documents are valid. However, foreign investors who are new to the regulatory environment of the UAE are advised to avail of the services of the best business setup consultants in Sharjah. The process of company formation in Sharjah’s Hamriyah Free Zone can be completed in the following three steps:

    1. Select the Activity
    2. Determine the Legal Structure
    3. Choose a Facility
    4. Submit Documents
    5. Make Payment
    6. Collect the Trade License

    Documents Required for Hamriyah Company Formation 

    The following documents are required to be submitted to the Free Zone Authority for incorporating a company in Hamriyah Free Zone:

    1. A copy of the shareholder’s and manager’s passport
    2. A copy of the shareholder’s and manager’s visit/tourist visa or
    3. Attested “No Objection Letter from the current sponsor (if the applicants hold a UAE employment visa)

    Compliance Requirements in Hamriyah Free Zone 

    Foreign investors running a business in Hamriyah Free Zone must consider certain regulations that they should comply with. They need to assess whether they fall within the scope of regulations such as Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO) and Anti-money Laundering & Combatting Financing of Terrorism (AML-CFT). Even companies undergoing liquidation in Hamriyah Free Zone must assess their compliance status. Failing to comply with these regulations will lead to hefty penalties and other dire consequences. Business setup consultants in Sharjah can help foreign investors avoid such penalties and reputation damage.

    Trusted Business Setup Services in Sharjah, UAE 

    Hamriyah Free zone is the UAE’s second-largest industrial zone and steadily contributes to the country’s economic development. Located in Sharjah, the Business setup in Hamriyah free zone attracts investors due to the free zone’s strategic location that is best suited for companies seeking logistics benefits. Though the company formation process is straightforward, most entrepreneurs hire the best business setup consultants in Sharjah such as Jitendra Business Consultants (JBC) for speedy license approval.

    Foreign investors trust JBC’s business setup services in Sharjah, UAE as experience, expertise and legal know-how matter the most when it comes to company formation. The investors benefit from JBC’s team of business setup consultants whose wealth of experience and knowledge on free zone regulations make the approvals easier. JBC undertakes the drafting of documents including MoA on behalf of the investors and makes the license issuance process a lot simpler. Apart from company formation in the UAE,  JBC also provides PRO services, Accounting, ESR, AML-CFT, UBO, VAT and trademark services.

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