- September 29, 2023
- Posted by: DBS
- Category: Business Setup
If you are considering expanding your business to the UAE, particularly Dubai, you may have come across the term “Hamriyah Free Zone.” Located in the emirate of Sharjah, Hamriyah Free Zone is a rapidly growing hub for international business and trade. With its strategic location, state-of-the-art infrastructure, and attractive incentives, Hamriyah Free Zone has become a preferred destination for entrepreneurs seeking to set up their businesses in the region. In this article, we will explore the key advantages and process of Hamriyah Free Zone business setup, including company formation, pro services, and corporate bank account registration. Whether you are a small startup or an established multinational corporation, Hamriyah Free Zone offers a business-friendly environment that can pave the way for your success in the UAE.
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Benefits of Setting up a Business in Hamriyah Free Zone
Hamriyah Free Zone is a highly attractive location for entrepreneurs looking to establish a business in the United Arab Emirates (UAE). The numerous benefits offered by Hamriyah Free Zone make it an ideal choice for both local and foreign investors. In this article, we will explore the key advantages of setting up a business in Hamriyah Free Zone.
0% Corporate and Personal Income Tax
One of the most appealing benefits of establishing a business in Hamriyah Free Zone is the exemption from corporate and personal income tax. This means that the profits earned by your company are not subject to taxation, allowing you to maximize your earnings and reinvest in your business. Additionally, employees of companies operating in Hamriyah Free Zone are not required to pay personal income tax on their salaries, which makes it an attractive destination for skilled professionals.
100% Foreign Ownership Allowed
In Hamriyah Free Zone, 100% foreign ownership of businesses is permitted. Unlike other areas in the UAE, where a local sponsor or partner is required, Hamriyah Free Zone allows entrepreneurs to have full control and ownership of their company. This offers a unique opportunity for foreign investors to establish and expand their business operations without any restrictions. The freedom to own your business entirely provides a sense of security and autonomy, which is highly desirable for many entrepreneurs.
No Currency Restrictions
Another significant advantage of setting up a business in Hamriyah Free Zone is the absence of currency restrictions. You can operate your business in any currency of your choice, enabling you to cater to international clients and conduct transactions with ease. This allows for seamless cross-border trade and removes any barriers that may hinder your business growth.
Flexible Visa Regulations
Hamriyah Free Zone offers flexible visa regulations, making it easier for businesses to attract and retain skilled workers from around the world. As a business owner, you have the ability to sponsor your employees’ visas, allowing them to work and reside in the UAE legally. The streamlined visa process and efficient immigration system in Hamriyah Free Zone ensure that your employees can focus on their work without the hassle of complicated paperwork or delays.
Types of Companies Allowed in Hamriyah Free Zone
Hamriyah Free Zone caters to various types of companies, providing flexibility and catering to the unique needs of different businesses. Depending on your specific requirements and preferences, you can choose from the following types of company formations in Hamriyah Free Zone:
Free Zone Establishment (FZE)
A Free Zone Establishment (FZE) is a company that is owned by a single individual or corporate entity. It requires a minimum share capital as per the regulations, and the shareholder(s) must hold 100% ownership of the company. FZE offers complete control and ownership rights to the investor, making it an ideal choice for individuals or small businesses.
Free Zone Company (FZC)
A Free Zone Company (FZC) is similar to an FZE but allows for multiple shareholders. This type of company formation requires a minimum of two shareholders and a maximum of five. Like FZE, FZCs provide 100% ownership to the shareholders, allowing for greater collaboration and investment opportunities.
A Branch Office is an extension of an existing UAE or foreign company. Setting up a branch office in Hamriyah Free Zone allows companies to expand their presence and benefit from the advantages offered by the free zone. The branch office is legally dependent on its parent company and operates under its name, maintaining the same legal identity.
Procedure for Setting up a Business in Hamriyah Free Zone
Setting up a business in Hamriyah Free Zone involves a standardized and streamlined process, designed to ensure efficiency and convenience for investors. The following steps outline the procedure for establishing your business in Hamriyah Free Zone:
Submit Application and Required Documents
The first step is to submit the application along with the required documents to the relevant authorities in Hamriyah Free Zone. The application form should be duly filled with accurate and precise information. The necessary documents typically include:
- Application form
- Colored passport copy of shareholders and directors
- Business plan
- Proof of address
- Bank reference letter
It is essential to provide all the required documents as per the guidelines to ensure a smooth and timely process.
Receive Initial Approval
Once the application and documents are submitted, the authorities will review the information and documentation provided. If everything is in order and meets the requirements, you will receive an initial approval for your business setup in Hamriyah Free Zone. This approval signifies that your proposed business is eligible for establishment within the free zone.
Lease Office Space and Sign Lease Agreement
After receiving the initial approval, you can proceed to lease office space within Hamriyah Free Zone. The free zone offers a range of office options to suit different requirements and budgets. Once you have selected the office space, you will need to sign a lease agreement with the free zone authorities, solidifying your tenancy and legal rights to the space.
Submit Additional Documents and Obtain the Final Approval
In addition to the initial approval, you will be required to submit additional documents as per the regulations and guidelines of Hamriyah Free Zone. These may include financial statements, no-objection certificates, and any other specific requirements based on your business activity. Once all the necessary documents are submitted and reviewed, you can obtain the final approval for your business setup in Hamriyah Free Zone.
Obtain Trade License
After obtaining the final approval, you can proceed to obtain the trade license for your business. The trade license is a legal document that grants you the authority to conduct your specified business activities within Hamriyah Free Zone. It is important to ensure that the trade license accurately reflects the nature of your business and adheres to the regulations set forth by the free zone authorities.
Register Employees with Relevant Authorities
Once your business is established and the trade license is obtained, you can proceed to register your employees with the relevant authorities in Hamriyah Free Zone. This includes obtaining their work visas, ensuring compliance with immigration regulations, and providing your employees with the necessary documentation to legally work and reside in the UAE.
Documents Required for Business Setup in Hamriyah Free Zone
To initiate the process of setting up a business in Hamriyah Free Zone, you will need to gather and submit several important documents. These documents are essential for assessing the eligibility and suitability of your business for establishment within the free zone. The documents typically required for business setup in Hamriyah Free Zone include:
The application form is the initial step in the business setup process and provides essential information about the proposed business. It is important to fill the application form accurately and completely to avoid any delays or complications during the approval process.
Colored Passport Copy of Shareholders and Directors
The colored passport copies of the shareholders and directors are required to verify their identity and eligibility for setting up a business in Hamriyah Free Zone. The passport copies should be clear and valid to ensure the smooth processing of your application.
A comprehensive business plan is crucial for evaluating the feasibility and potential success of your business. This document should outline the objectives, strategies, market analysis, financial projections, and other relevant details necessary for understanding the nature of your business and its potential for growth.
Proof of Address
To establish your credibility and legitimacy, you will need to provide proof of address. This may include utility bills, bank statements, or any other official documents that clearly indicate your current address.
Bank Reference Letter
A bank reference letter serves as proof of your financial stability and capabilities. It should include details of your banking relationship, account status, and any other pertinent information that reinforces your financial standing.
It is important to maintain the accuracy and validity of these documents to ensure a smooth and efficient business setup process in Hamriyah Free Zone.
Cost of Setting up a Business in Hamriyah Free Zone
While the benefits and advantages of setting up a business in Hamriyah Free Zone are evident, it is also essential to consider the costs associated with the process. The cost of establishing a business in Hamriyah Free Zone includes various fees and expenses, such as:
The registration fees are payable to the free zone authorities for processing and approving your application for business setup. The exact fees vary depending on the type of company and the scope of business activities.
To legally operate your business within Hamriyah Free Zone, you will need to obtain a trade license. The license fees are payable to the free zone authorities and vary based on the type of business activity and the duration of the license.
If you plan to employ staff or sponsor visas for yourself and your employees, there will be visa fees involved. These fees cover the processing, issuance, and renewal of the visas required for legal residency and work authorization within the UAE.
The cost of office space in Hamriyah Free Zone varies depending on the size, location, and facilities provided. It is important to consider your budget and business requirements when selecting your office premises.
It is recommended to consult with a professional business setup service provider to obtain accurate and detailed information regarding the specific costs associated with your business setup in Hamriyah Free Zone.
Business Activities Allowed in Hamriyah Free Zone
Hamriyah Free Zone offers a wide range of business activities, allowing entrepreneurs to choose the industry that aligns with their expertise and market demand. Some of the business activities permitted in Hamriyah Free Zone include:
The free zone provides an ideal environment for manufacturing businesses, with well-equipped facilities and infrastructure. Manufacturing companies can benefit from the strategic location and easy access to global markets.
Hamriyah Free Zone offers state-of-the-art warehouses to cater to businesses involved in storage, logistics, and distribution. The warehouses are equipped with modern technology and security systems to ensure the safe handling and storage of goods.
Businesses involved in assembling various products can also thrive in Hamriyah Free Zone. The availability of skilled labor, flexible regulations, and convenient logistics make it an attractive location for assembly-based businesses.
Companies specializing in packaging services can leverage the opportunities offered by Hamriyah Free Zone. The free zone provides access to a range of packaging materials, equipment, and facilities to ensure efficient and reliable packaging solutions.
Hamriyah Free Zone’s strategic location and excellent connectivity make it an ideal hub for distribution businesses. Companies involved in import/export, logistics, and supply chain management can benefit from the extensive transportation network and world-class infrastructure.
The diverse range of business activities allowed in Hamriyah Free Zone caters to a wide range of industries, ensuring that entrepreneurs can find suitable opportunities for growth and success.
Infrastructure and Facilities in Hamriyah Free Zone
Hamriyah Free Zone boasts impressive infrastructure and a wide array of facilities to support businesses of all sizes and sectors. The free zone offers the following infrastructure and facilities that contribute to a conducive business environment:
Hamriyah Free Zone provides modern and well-equipped warehouses to cater to the storage needs of businesses. These warehouses are equipped with advanced technology and security systems to ensure the safekeeping of goods.
Customs Clearance Services
Efficient customs clearance services are available within Hamriyah Free Zone, ensuring smooth import and export processes. The streamlined customs procedures facilitate the movement of goods, reducing delays and enhancing efficiency.
Hamriyah Free Zone offers a range of commercial offices suitable for businesses of all sizes. Whether you need a small office space or a larger facility, you can find options that suit your requirements and budget.
For businesses that require accommodation for their workforce, Hamriyah Free Zone offers dedicated labor accommodations. These accommodations are designed to provide comfortable living conditions for employees, ensuring their well-being and productivity.
Dedicated Logistics Areas
The free zone has designated logistics areas equipped with modern infrastructure and facilities. These areas are specifically designed to support logistics companies and promote efficient operations.
The well-developed infrastructure and facilities in Hamriyah Free Zone contribute to a favorable business environment, allowing companies to operate smoothly and efficiently.
Customs Regulations in Hamriyah Free Zone
Understanding the customs regulations is crucial when setting up a business in Hamriyah Free Zone. Being aware of the import and export procedures, as well as the applicable duties and exemptions, can help streamline your business operations. Here are some important customs regulations to consider:
Import Duties and Taxes
When importing goods into Hamriyah Free Zone, it is important to be aware of the applicable import duties and taxes. However, one of the advantages of operating within a free zone is that companies are typically exempted from customs duties and value-added tax (VAT) on imported goods.
Hamriyah Free Zone offers various incentives and exemptions, including tariff exemptions, to attract businesses and promote international trade. These exemptions are designed to reduce the cost of doing business, making it an attractive destination for importers and exporters.
The customs procedures within Hamriyah Free Zone are designed to facilitate the movement of goods and streamline the import/export processes. The free zone authorities have implemented efficient customs procedures to ensure timely clearance of goods, reducing the risk of delays or disruptions to your business operations.
If your business involves exporting goods from Hamriyah Free Zone to other countries, it is important to be aware of the export regulations. Familiarize yourself with the documentation requirements, compliance standards, and any specific regulations imposed by the destination country to ensure smooth and hassle-free export procedures.
By adhering to the customs regulations and staying updated with any changes or amendments, you can ensure compliance and avoid any potential penalties or disruptions to your business operations.
Banking Services in Hamriyah Free Zone
Hamriyah Free Zone offers a range of banking services to support the financial needs of businesses operating within its jurisdiction. Establishing a corporate bank account within the free zone provides several advantages, including:
Opening a Corporate Bank Account
Setting up a corporate bank account in Hamriyah Free Zone is a straightforward process facilitated by the free zone authorities. Opening a corporate bank account allows you to manage your business transactions efficiently, access banking services, and facilitate payments to clients, suppliers, and employees.
Online Banking Services
Most banks operating within Hamriyah Free Zone offer online banking services, providing convenience and accessibility for businesses. With online banking, you can monitor your account, initiate transactions, and manage your finances from anywhere in the world, ensuring efficient and secure banking operations.
Business Loans and Financing Options
Establishing a banking relationship within Hamriyah Free Zone provides access to various business loan and financing options. Whether you require capital for expansion, working capital, or investment opportunities, banks within the free zone offer customized financing solutions tailored to your business requirements.
Trade Finance Facilities
Hamriyah Free Zone’s banks offer trade finance facilities to support importers and exporters in their international trade transactions. These facilities include letters of credit, bank guarantees, and factoring services, enabling businesses to mitigate risks and facilitate trade operations.
The banking services available within Hamriyah Free Zone provide businesses with essential financial support and the tools necessary for efficient and effective financial management.
Setting up a business in Hamriyah Free Zone offers numerous advantages, making it an attractive choice for local and foreign investors. The 0% corporate and personal income tax, 100% foreign ownership, no currency restrictions, and flexible visa regulations make Hamriyah Free Zone a business-friendly destination. Furthermore, the availability of different types of companies, streamlined setup procedures, and a wide range of permitted business activities contribute to the ease of establishment and growth. With world-class infrastructure, dedicated facilities, favorable customs regulations, and comprehensive banking services, Hamriyah Free Zone provides entrepreneurs with a thriving ecosystem for business success.
Setting up a business in Hamriyah Free Zone requires careful planning and adherence to the necessary legal and regulatory requirements. It is recommended to seek the assistance of professional business setup service providers who can guide you through the process and ensure compliance with all necessary procedures. With the right knowledge, support, and resources, you can establish a successful and thriving business in Hamriyah Free Zone, leveraging its numerous benefits and opportunities.