How to Start a Business in Hamriyah Free Zone
How to Start a Business in Hamriyah Free Zone
01 May How to Start a Business in Hamriyah Free Zone
Freezone Business Setup In Sharjah
The free zone establishment has played a crucial role in positioning the UAE as a global hub for trade, commerce, and innovation, contributing to the country’s economic growth and development.
When most people think of the United Arab Emirates, they think of Dubai or even Abu Dhabi. Rarely they do think of Sharjah or have even heard of it. Sharjah is a more traditional Emirate in terms of culture and living. It is not as big as Dubai or Abu Dhabi, but there are great advantages to living and working in Sharjah. It is also a great place to start your own business and an alternative to the high prices of Dubai and Abu Dhabi. People who wish to start a Trading Company or even a Professional Consultancy often setup in Sharjah.
Hamriyah Free Zone Trade License
Many Expats choose to open their businesses in a Free Zone so that they have 100% ownership of their company and have complete control. The Hamriyah Freezone is one of the best and cheapest options in the UAE.
The Free Zone specializes in Steel, Perfumes, Timber, Maritime, Petrochemicals, and Oil & Gas where they have specific zones set up to cater to these industries. You can get a Five-Activity Commercial Trade License in the Hamriyah Free Zone for 25,000 AED and that will also give you 4 visa allotments .
The activities do not have to be in a similar field and can be quite different. For instance, we just assisted our client in setting up his license in the Hamriyah Free Zone and it gives him the ability to trade in foods, building materials, petroleum products, chemicals and furniture. He can trade in all of these items under just 1 license for just 25,000 AED. Also for the same price, you can get a license for a Professional Consultancy such as Management, Marketing, and Information Technology. Keep in mind that if you want to start a professional consultancy company , you will need to have an Attested University Degree.
Types Of Business Licenses Offered By Hfza
Commercial License:
Activities: Ideal for businesses involved in trading, import, export, distribution, and storage of goods. This license can be further categorized:
- General Trading License: Permits trading of an unlimited number of products within the approved categories.
- Trading License: Allows import, export, sale, distribution, and storage of specific items listed on the license.
- E-Commerce License: Facilitates conducting online trading activities for both goods and services.
Advantages:
- Provides operational flexibility for businesses dealing with a variety of products.
- The General Trading License offers exceptional freedom for broad-spectrum trading activities.
- The E-Commerce License caters to the growing demand for online commerce ventures.
Industrial License:
Activities: Exclusively issued to companies engaged in manufacturing, processing, or assembling products within the free zone. Authorized activities include production, value addition, and packaging of goods for export.
Advantages:
- Enables businesses to leverage HFZA’s world-class industrial infrastructure.
- Offers benefits like duty exemptions on raw materials imported for manufacturing purposes.
- Creates opportunities to capitalize on HFZA’s strategic location for international export.
Service License:
Activities: Granted to companies providing professional services within the free zone. This can encompass a wide range of sectors, such as consultancy, technology, logistics, and healthcare.
Advantages:
- Caters to businesses offering professional services and expertise.
- Provides a platform to operate within a tax-efficient environment.
- Enables access to a large pool of skilled professionals within the free zone.
Choosing the Right License:
Selecting the appropriate license hinges on your company’s core business activities. Business Setup Consultants can assist you in thoroughly evaluating your operational needs and recommending the most fitting license type for your successful venture in HFZA.
Freezone Company Setup Hamriyah
Included in the price of the license is the rent for an E-Office which is a 10m2 office space and is similar to a virtual office. Many other free zones charge separate fees for the license and the rent for an office and this could greatly increase your budget. Many clients find it particularly attractive that you can get a small office and a license for 25,000 AED. Of course, if your business requires a larger office space, that option is available.
The Hamriyah Free Zone can also provide warehouses for leasing and land to build your own warehouse. There are not many free zones in the UAE that allow you to build your own facilities and this is just another great example of how the Hamriyah Free Zone provides options and flexibility to clients.
Unveiling the Advantages of HFZA
Hamriyah Free Zone (HFZA) stands out as a premier destination for establishing and growing your business. Here, we delve into the specific advantages that make HFZA an irresistible proposition for international investors and entrepreneurs:
- Unparalleled Ownership and Profit Repatriation: If you want to be a foreign business owner, HFZA offers a unique advantage – 100% foreign ownership of your company. This eliminates the need for local partnerships, granting you complete control over your business operations. Additionally, there are no restrictions on profit repatriation, allowing you to freely reinvest or distribute earnings as per your financial goals.
- Tax Haven for Business Growth: Operating in HFZA translates to significant tax benefits. Companies enjoy complete exemption from corporate and income taxes, fostering substantial cost savings and boosting profitability. This frees up capital for business development, innovation, and expansion within the region.
- Seamless Trade and Logistics: HFZA boasts streamlined customs procedures, minimizing bureaucratic hurdles and expediting the import and export of goods. Coupled with duty exemptions on imports for manufacturing and re-exports, this creates a highly trade-friendly environment. Businesses can leverage this advantage to optimize their supply chains and reach a wider global audience.
- World-Class Infrastructure and Support: HFZA provides a world-class infrastructure that empowers businesses to thrive. Modern warehouses, Hamriyah port, industrial units, and well-equipped office spaces cater to diverse operational needs. Additionally, the free zone offers a comprehensive suite of business support services, including banking, legal assistance, and visa processing. This one-stop-shop approach streamlines business setup and ensures smooth operations.
Business Plan – Starting a Business in Hamriyah, Sharjah Free Zone
Starting a business in the Hamriyah Freezone is not a difficult process at all. In fact, you can get your license in as little as 2 working days. Your first step is to come up with different business ideas and determine what type of business you want to start. You may have a particular field that you are interested in, went to school for, or were trained in but the bottom line is that you want to choose an idea that you think you would be successful in.
Once you know what you want to do, you need to develop a business plan and this perhaps is the most important step toward opening a business. A good business plan takes time to develop and it provides the mission of your company, what business activity you will be engaging in, how you plan to be successful and how you intend to achieve your goals. The plan should describe the actions you will take, the projected earnings of your business, and how investors will see a return on their investment.
A large part of the plan is conducting market research where you find out everything there is to know about your particular field of interest, including the costs for opening your business and studying your competitors to see what makes them successful.
Once you know your competition, it is easier to determine how you intend to be more successful than them. Writing a good business plan is no easy task and if you are not sure how to do it, you shouldn’t worry because there is plenty of help available to you. You can either consult with a friend who has knowledge of business plans or you can go with the most popular option today, an internet search. If you search “ business plan “, you will find many pages of useful information and the best part about this, the information is free. As I mentioned earlier, a business plan is one of the most important pieces to opening a business and something that you should invest time and resources on.
Start Your Own Business in Hamriyah
Once you have your plan, it is time to start your own business . The Al Hamriyah Free Zone authority makes it much easier than any other UAE free zone to get a license. The fact that you can get your license in just 2 working days also proves that. It means there is not a lot of paperwork and a lot less red tape than most other areas in the UAE where a typical timeframe for a license is 2 months or longer.
The documentation that you will need is the completed application providing 5 proposed names for your business, starting with the name that you most want to call your business. The Free Zone conducts an international search of your proposed name to see if the name is already in use in another jurisdiction and if it is, they will default to your 2 nd name given.
Along with your application, you must also provide a color passport copy that is valid for 6 months and includes a color copy of the entry visa stamp. If you are already a resident of the UAE and is sponsored by another company, you would be required to get a No Objection Certificate (NOC) from your current employer giving you permission to open your company in Hamriyah.
If you are obtaining a trade license, then you do not need to submit any other documentation but if you are starting a Consultancy, the last documentation you would need to submit is your business plan and the Hamriyah Free Zone requires that it is at least 2 pages. Even if you are starting a Trading company where a business plan is not required, I still think it is wise to form a business plan for your own benefit and to the benefit of your company.
- The first step is filling out the application and making payment for services.
- Step two is reserving the Hamriyah Free Zone company formation and name, registering the shareholders with the Hamriyah Free Zone and getting your activity approved.
- Step three is signing the documents in the presence of a free zone official and applying for a PO Box. After 2 working days, your license will be issued.
Once your license is issued, you may meet with a banker to discuss opening up your company bank account. Once the license is issued, you can apply for the Shareholder and employee visas.
Conclusion
And that’s all it takes. Sound simple? It is if you know what you are doing. Opening a business in the UAE , like anywhere in the world, can be a challenging process. Therefore, it is very smart to contract with a Business Setup Consultancy who has experience setting up businesses in the UAE and knows the process.
Often times, the Consultancy will provide PRO services in Dubai (Public Relations Officer) that assist you every step of the way and guide you through the process. The PRO will submit all documentation to the free zone, saving you the trip, and when it comes time actually to sign for the license, the PRO will drive you to the free zone offices and show you exactly where to go and what to do. A consultancy will also assist you in obtaining the residence visas if you choose that service.
Most people in the UAE know how challenging government offices can be so having someone on your side who has experience can not only save you time but also save you stress. So, if you want to see yourself as a winning investor or business person, we are here to help you in Dubai UAE. Don’t forget to visit this FAQ section if you have any question(s) regarding our PRO service, feel free to ask.
For more information on setting up your business in the Hamriyah Free Zone , you may contact Business Setup Consultants at +971 4 430 1245 or email info@businessetup.com .
