Hamriyah Free Zone: Strategic Gateway to UAE and Global Markets

History and Vision

Established in 1995 by a decree from His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, the Hamriyah Free Zone was conceived with a clear vision: to diversify the economy of Sharjah and create a robust, industrial-centric trading hub.

Its strategic location on the Arabian Gulf was chosen to leverage maritime trade routes. Over the past two decades, HFZA has grown exponentially from a local initiative into a major international player. The vision, guided by its leadership, has consistently focused on providing integrated, investor-friendly services and state-of-the-art infrastructure to foster industrial growth and attract foreign direct investment, solidifying Sharjah’s position on the global economic map.

Business Setup Process: Step-by-Step Guide

Setting up a company in Hamriyah Free Zone is designed to be streamlined and efficient. The typical process involves the following steps:

1. Application Submission: Submit the completed application form along with a copy of your passport and a proposed business plan.
2. Initial Approval: The HFZA reviews the application and grants initial approval for the chosen business activity.
3. Select Premises: Choose and reserve your preferred office, warehouse, or land plot from the available options.
4. License Application & Document Submission: Submit the required documents, which typically include shareholder passports, a No-Objection Certificate (NOC) from a current UAE sponsor (if applicable), and proof of address.
5. Sign the Agreement: Sign the lease and license agreement with the HFZA.
6. Pay Fees: Settle all relevant fees for the license, registration, and premises.
7. Collect Your License: Receive your official business license and establishment card, allowing you to commence operations.

Licensing Options and Business Activities

HFZA offers a range of licenses tailored to different business models:

• Trading License: For import, export, and distribution activities.
• Industrial/Manufacturing License: For companies involved in the production or processing of goods.
• Service License: For businesses offering professional, consultancy, or other services.
• National Industrial License: A specialized license for UAE nationals.

Permissible Business Activities

The range of permissible business activities is extensive, covering hundreds of options across sectors such as:

• General Trading
• Heavy Equipment and Machinery
• Oil and Gas Services
• Maritime and Ship Chandlering
• Food and Beverage Processing
• IT and Technology Services
• Engineering Consultancy
• Logistics and Freight Services

Ownership, Taxation, and Regulatory Advantages

• 100% Foreign Ownership: There is no requirement for a UAE national to act as a local sponsor or partner.
• Full Profit and Capital Repatriation: Businesses can send 100% of their profits and capital back to their home country without any restrictions.
• Corporate Tax Exemption: HFZA companies benefit from a corporate tax exemption as per UAE law, aligning with the incentives offered in free zones.
• Customs Duty Benefits: Import and export duties are significantly reduced or exempted, with a standard 5% UAE customs duty only applied when goods leave the free zone for the local UAE market.
• No Currency Restrictions: There are no controls on foreign currencies, facilitating seamless international transactions.
• No Personal Income Tax: Employees and owners are not subject to personal income tax in the UAE.

Office and Facility Options

HFZA provides flexible solutions to suit various operational needs and budgets:

• Office Spaces: From executive offices and flexi-desks to larger office suites.
• Warehouses & Showrooms: Various sizes of storage and display spaces, often with office attachments.
• Land Plots: For companies that wish to construct their own custom-built facilities, including industrial plants and logistics yards.
• Open Yards: For storage of heavy machinery, equipment, and bulk materials.

Costs and Fee Structure

Costs in HFZA are generally considered competitive, especially for industrial and logistics businesses. A precise quote depends on the license type and facility chosen, but the structure typically includes:

Visa and Immigration Services

HFZA facilitates a straightforward visa process for company employees and sponsors:

• Eligibility: The number of visas a company is eligible for is typically linked to the size of its premises and the type of license.
• Process: The HFZA’s dedicated immigration department handles the application, stamping, and renewal processes.
• Types: The zone assists with procuring Employment Visas, Investor Visas, and Dependents Visas (for spouse and children).
• Support: Many business setup consultants within the zone offer end-to-end visa processing support to simplify the procedure for new investors.

Additional Benefits and Support Services

Beyond the core legal and tax advantages, HFZA offers a suite of value-added services:

• One-Stop-Shop: Access to all necessary government and administrative services (immigration, customs, etc.) within the free zone complex.
• Business Support: Assistance with PRO services, legal attestations, and document clearing.
• Infrastructure: High-quality roads, utilities (water, electricity, gas), and high-speed telecommunications.
• Logistics & Port Access: Direct and efficient access to the deep-water Hamriyah Port, a key advantage for import/export businesses.
• Networking Opportunities: The authority often organizes events and exhibitions to foster business connections.

Challenges and Considerations

While advantageous, potential investors should be aware of certain considerations:

• Market Access Limitations: An HFZA company is legally established to operate within the free zone and internationally. To conduct business directly with the UAE mainland (onshore) market, you may need to appoint a local distributor or agent and clear goods through UAE customs.
• Industrial Focus: The environment is geared towards industrial and logistics operations. It may be less suited for purely retail or consumer-facing businesses that require high street visibility.
• Location: While strategically located for port access, the commute from central Dubai or Abu Dhabi can be significant for daily travel.