If you are considering setting up a business in Hamriyah Free Zone, look no further. DBS Business Setup, a reputable consultancy and service provider based in Dubai, offers comprehensive business setup and support services across the UAE and GCC. From business registration in mainland, free zones, and offshore areas to obtaining necessary approvals from government departments and authorities, DBS Business Setup has got you covered. They can also assist you with opening corporate and business bank accounts, navigating VAT registration and filling services, as well as providing expertise in UAE corporate tax registration and filing. With their expertise and extensive range of services, DBS Business Setup is the go-to solution for anyone looking to establish their business in Hamriyah Free Zone or other areas in Dubai and the UAE.

Hamriyah Free Zone

Overview

Hamriyah Free Zone is a leading industrial and commercial hub located in Sharjah, United Arab Emirates (UAE). Established in 1995, it has become one of the most sought-after destinations for business setup in the region. With its strategic location, state-of-the-art infrastructure, and advantageous policies, Hamriyah Free Zone offers numerous benefits and opportunities for entrepreneurs and businesses.

Advantages

There are several advantages to setting up a business in Hamriyah Free Zone. Firstly, it allows for 100% foreign ownership, meaning that you can have full control of your business without the need for a local sponsor. Additionally, the free zone’s strategic location provides easy access to regional and international markets, making it an ideal choice for companies looking to expand their global reach. Hamriyah Free Zone also offers tax advantages, including zero corporate and personal income taxes, as well as exemption from customs duties and import-export taxes.

Types of Businesses Allowed

Hamriyah Free Zone caters to a wide range of business activities, making it suitable for various industries. Businesses in sectors such as manufacturing, trading, logistics, services, and consultancy can all be established in the free zone. Some of the popular business activities include manufacturing of petrochemicals, plastics, and metals, as well as trading in textiles, electronics, and automobiles. The flexibility in the types of businesses allowed makes Hamriyah Free Zone a versatile and dynamic business hub.

Legal Structure Options

When setting up a business in Hamriyah Free Zone, you have several legal structure options to choose from. These include a free zone establishment (FZE), free zone company (FZC), branch of a local or foreign company, and an offshore entity. Each legal structure has its own requirements and benefits, and selecting the most suitable one depends on factors such as the nature of your business and your long-term objectives.

Requirements for Setting up a Business

Before starting your business in Hamriyah Free Zone, there are certain requirements that need to be fulfilled. These include obtaining a business license, securing office space, determining the shareholders of the company, meeting capital requirements, and fulfilling visa requirements for employees.

Business License

Obtaining a business license is a fundamental requirement for operating a business in Hamriyah Free Zone. The type of license you need depends on your business activity. There are different categories of licenses available, such as trading licenses, service licenses, industrial licenses, and offshore licenses. Each license has its own set of rules and regulations, and it is crucial to understand the specific requirements for your chosen license category.

Office Space

One of the prerequisites for setting up a business in Hamriyah Free Zone is having a physical presence in the free zone. This requires leasing an office space within the designated areas of the free zone. The size and type of office space required depend on the nature and scale of your business operations. It is essential to consider factors such as the number of employees, the need for storage facilities, and any specific infrastructure requirements when selecting the office space.

Shareholders

Determining the shareholders of your company is another important aspect of setting up a business in Hamriyah Free Zone. The number and nationality of shareholders may vary depending on the legal structure chosen. For example, a free zone establishment (FZE) requires a minimum of one shareholder, while a free zone company (FZC) can have multiple shareholders. It is important to comply with the regulations regarding shareholding structure to ensure legal compliance and smooth business operations.

Capital Requirements

Capital requirements vary depending on the type of business and the legal structure chosen. For example, an FZE requires a minimum share capital of AED 150,000, while an FZC requires a minimum share capital of AED 1 million. It is essential to have a clear understanding of the capital requirements specific to your business and legal structure to avoid any financial discrepancies during the setup process.

Visa Requirements

If you plan to employ staff in your Hamriyah Free Zone company, you will need to fulfill the visa requirements set by the relevant authorities. This includes obtaining work permits and residence visas for your employees. The number of visas allowed may depend on factors such as the size of your office space and the nature of your business activity. Ensuring compliance with visa requirements is crucial to avoid any legal issues and penalties.

Steps to Set up a Business in Hamriyah Free Zone

Setting up a business in Hamriyah Free Zone involves several steps that need to be followed in a sequential manner. Here is a step-by-step guide to help you navigate the process:

Choose a Business Activity

The first step is to determine the type of business activity you wish to engage in. This could be manufacturing, trading, services, or any other activity permitted in Hamriyah Free Zone. Research the market demand and assess the feasibility and profitability of your chosen business activity before proceeding to the next step.

Choose a Company Name

After finalizing your business activity, you need to select a unique name for your company. The name should adhere to the guidelines provided by the free zone authority and should not infringe upon any existing trademarks or copyrights. A well-thought-out and distinctive company name can help create a strong brand identity for your business.

Submit an Application

Once you have chosen a business activity and company name, you need to submit an application to the Hamriyah Free Zone Authority. The application form will require information about your business, shareholders, office space requirements, and other relevant details. Make sure to provide accurate and complete information to avoid any delays in the approval process.

Obtain Necessary Approvals

After submitting your application, it will undergo a review process by the Hamriyah Free Zone Authority. This includes checking the feasibility of your business activity, verifying the documents submitted, and ensuring compliance with the regulations. Once your application is approved, you will receive the necessary approvals to proceed with the setup process.

Sign Lease Agreement

To secure office space in Hamriyah Free Zone, you will need to sign a lease agreement with the free zone authority. The lease agreement will outline the terms and conditions of the tenancy, including the duration, rent, and other related matters. It is important to carefully review the lease agreement and seek legal advice if necessary before signing the contract.

Make Payment and Obtain License

After signing the lease agreement, you will be required to make the necessary payments for license issuance and other related fees. Once the payment is made, you will receive your business license, allowing you to commence your operations in Hamriyah Free Zone. The license is a legal requirement and is essential for conducting business activities within the free zone.

Obtain Immigration and Labor Cards

If you plan to employ staff in your company, you will need to obtain immigration and labor cards for your employees. This involves applying for work permits and residence visas through the relevant authorities. Follow the guidelines provided by the free zone authority and adhere to the immigration and labor regulations to ensure a smooth process.

Register for VAT

If your business is eligible for value-added tax (VAT), you will need to register for a VAT number and comply with the VAT regulations. Ensure proper record-keeping and timely filing of VAT returns to avoid penalties and legal issues. Seek the assistance of a professional service provider to ensure compliance with VAT requirements.

Benefits of Setting up a Business in Hamriyah Free Zone

Setting up a business in Hamriyah Free Zone offers several benefits that can contribute to the success and growth of your company. Some of the key advantages include:

100% Foreign Ownership

Hamriyah Free Zone allows for 100% foreign ownership, providing entrepreneurs with full control and ownership of their businesses. This eliminates the need for a local sponsor, giving you the freedom to make independent decisions and pursue your business goals without any restrictions.

Strategic Location

Located in Sharjah, Hamriyah Free Zone benefits from its strategic location in the UAE. With easy access to major international airports, seaports, and highways, it provides excellent connectivity to regional and global markets. This makes it an ideal choice for businesses looking to expand their reach and explore new opportunities.

Tax Advantages

One of the most attractive features of Hamriyah Free Zone is its tax advantages. The free zone offers a favorable tax environment, including zero corporate and personal income taxes. Additionally, businesses operating in the free zone are exempt from customs duties and import-export taxes, further enhancing their profitability and competitiveness.

Ease of Doing Business

Hamriyah Free Zone prioritizes the ease of doing business and provides a streamlined setup process. The free zone authority has simplified procedures and efficient systems in place to facilitate the setup and operation of businesses. This allows for faster processing of applications, reducing administrative burdens and enabling entrepreneurs to focus on their core business activities.

Access to Skilled Workforce

Hamriyah Free Zone has a diverse and skilled workforce, with professionals from various industries and backgrounds. This provides businesses with access to a pool of talent, ensuring that they have the necessary expertise to grow and succeed. The availability of skilled workers can contribute to increased productivity and operational efficiency.

State-of-the-Art Infrastructure

Hamriyah Free Zone boasts state-of-the-art infrastructure, including modern office spaces, warehouses, and logistics facilities. The free zone is equipped with advanced technology and utilities to support the operational needs of businesses. This ensures that companies have access to high-quality facilities and services, enhancing their productivity and competitiveness.

Types of Licenses

Hamriyah Free Zone offers different types of licenses to cater to the diverse business activities that can be established in the free zone. The main types of licenses include:

Trading License

A trading license allows businesses to engage in import and export activities within the free zone and internationally. It is suitable for companies involved in trading of goods, such as textiles, electronics, and automobiles.

Service License

A service license is required for businesses providing professional and consulting services. This includes sectors such as information technology, finance, legal, and marketing.

Industrial License

An industrial license is necessary for businesses engaged in manufacturing and industrial activities. This includes sectors such as petrochemicals, plastics, metals, and construction materials.

Offshore License

An offshore license is suitable for businesses that do not require a physical presence in the UAE. It allows companies to benefit from the tax advantages and privacy offered by offshore jurisdictions.

Costs and Fees

Setting up a business in Hamriyah Free Zone involves various costs and fees that need to be considered. Some of the key expenses are:

License Fees

The cost of obtaining a business license depends on the type of license and the legal structure chosen. License fees can range from a few thousand dirhams to several tens of thousands, depending on the business activity and the scope of operations.

Office Space Rent

Leasing an office space in Hamriyah Free Zone incurs rental costs. The rent varies based on factors such as the size of the office, location within the free zone, and the facilities provided. It is advisable to compare multiple options and negotiate favorable lease terms to optimize costs.

Visa and Immigration Fees

Obtaining work permits and residence visas for employees involves visa and immigration fees. These fees depend on factors such as the number of visas required and the duration of the validity. It is essential to budget for these expenses when planning for your business setup.

Other Miscellaneous Costs

Additional costs may include fees for document attestation, translation services, and professional consultancy. It is important to factor in these miscellaneous costs to avoid any surprises during the setup process.

Support and Services Provided by DBS Business Setup

DBS Business Setup is a leading consultancy and service provider based in Dubai, specializing in business setup, company formation, and business incorporation services. With expertise and experience in the UAE and GCC markets, DBS Business Setup offers a wide range of services to facilitate the setup and growth of businesses. Some of the services provided by DBS Business Setup include:

Business Registration

DBS Business Setup assists clients in registering their businesses in various jurisdictions, including mainland, free zones, and offshore. They provide comprehensive guidance throughout the registration process, ensuring compliance with the legal requirements and regulations.

Company Formation

DBS Business Setup facilitates the formation of companies across various sectors and industries. Their team of experts helps entrepreneurs navigate the complexities of company formation, including legal structure selection, document preparation, and government approvals.

Business Incorporation

DBS Business Setup supports businesses in the incorporation process, including obtaining trade licenses and necessary permits. They guide clients through the procedural requirements and manage the documentation and paperwork involved.

Pro Services

DBS Business Setup offers professional services (pro services) to assist businesses with government approvals, document clearance, and other administrative tasks. This streamlines the process and saves time and effort for entrepreneurs.

Bank Account Opening

DBS Business Setup facilitates the opening of corporate and business bank accounts, ensuring that clients have access to reliable and efficient banking services. They provide guidance on selecting the most suitable bank and assist in fulfilling the necessary requirements.

VAT Registration and Filing

With the introduction of value-added tax (VAT) in the UAE, DBS Business Setup offers VAT registration and filing services. They assist clients in understanding the VAT regulations, registering for a VAT number, and ensuring timely and accurate VAT filing.

Corporate Tax Registration and Filing

DBS Business Setup also provides services related to corporate tax registration and filing. They guide businesses in complying with the corporate tax regulations and assist in the submission of tax returns and other tax-related requirements.

Why Choose DBS Business Setup

Choosing DBS Business Setup as your business setup consultant offers several advantages. Some of the key reasons to choose DBS Business Setup include:

Expertise and Experience

DBS Business Setup has extensive experience and expertise in the business setup and company formation sector. Their team of professionals is well-versed in the legal and regulatory framework of the UAE and can provide valuable guidance and support throughout the setup process.

Wide Range of Services

DBS Business Setup offers a comprehensive range of services, covering all aspects of business setup and company formation. From initial registration to ongoing support services, they have the capability to meet the diverse needs of businesses across various industries.

Knowledge of Local Laws and Regulations

Being based in Dubai, DBS Business Setup has in-depth knowledge of the local laws, regulations, and procedures governing business setup. They stay updated with the latest changes in the legal landscape and ensure compliance with all applicable requirements.

Professional Team and Support

DBS Business Setup prides itself on its professional team and customer-centric approach. They value their clients’ time and provide prompt and efficient support, ensuring a smooth and hassle-free setup experience.

Affordable Pricing

DBS Business Setup offers competitive and affordable pricing for their services. They provide transparent pricing structures and strive to deliver value for money to their clients.

Conclusion

Setting up a business in Hamriyah Free Zone offers numerous advantages and opportunities for entrepreneurs and companies. With its advantageous location, tax benefits, and state-of-the-art infrastructure, Hamriyah Free Zone provides a conducive environment for business growth. By following the steps outlined in this guide and leveraging the support and services provided by DBS Business Setup, you can navigate the setup process with ease and establish a successful presence in Hamriyah Free Zone.