How to establish an industrial unit in Hamriyah Free Zone?

Establishing an industrial unit in the Hamriyah Free Zone is a strategic move for entrepreneurs and businesses looking to expand their operations in the United Arab Emirates (UAE). This free zone, situated in Sharjah, offers numerous advantages, including tax exemptions, 100% foreign ownership, and modern infrastructure. In this comprehensive guide, we will walk you through the process of setting up an industrial unit in the Hamriyah Free Zone, providing you with all the essential information you need to make an informed decision.

Step 1: Conduct Market Research

Before diving into the establishment process, it’s crucial to conduct thorough market research. Identify the specific industry and market niche you want to target. Assess the demand for your products or services within the UAE and the broader Gulf region. Understanding your potential customer base and competitors will inform your business strategy.

Step 2: Choose a Legal Structure

Selecting the appropriate legal structure for your industrial unit is vital. In the Hamriyah Free Zone, you can opt for a Free Zone Establishment (FZE), which allows for a single shareholder, or a Free Zone Company (FZC), which permits multiple shareholders. Consulting with legal experts can help you make an informed decision based on your business goals.

Step 3: Register Your Business

Registering your business in the Hamriyah Free Zone involves several key steps:

a. Name Reservation: Choose a unique name for your business and submit it for approval.

b. Submit Application: Prepare and submit a business setup application, including all necessary documents and fees.

c. License Application: Apply for the relevant business license, which will depend on the nature of your industrial unit.

d. Lease Agreement: Secure a physical office or warehouse space within the free zone and sign a lease agreement.

e. Approvals and Inspections: Depending on your business activities, you may need to obtain specific approvals and undergo inspections.

f. License Issuance: Once all requirements are met, your business license will be issued.

Step 4: Comply with Regulations

The Hamriyah Free Zone Authority has specific regulations that businesses must adhere to. This includes adhering to environmental standards, health and safety regulations, and any industry-specific requirements. Non-compliance can result in fines or penalties, so it’s essential to stay informed and ensure your operations meet all legal requirements.

Step 5: Set Up Infrastructure

Establishing your industrial unit will require setting up the necessary infrastructure, including machinery, equipment, and a workforce. Consider sourcing equipment locally or importing it, depending on your needs. The Hamriyah Free Zone offers excellent connectivity and access to various logistics services to support your industrial operations.

Step 6: Hire and Train Staff

Recruit a skilled workforce for your industrial unit. The UAE has a diverse labor market, and you can find talent locally or through international recruitment agencies. Ensure that your employees receive the necessary training and certifications for their roles, and consider providing language training if needed.

Step 7: Connect with Suppliers and Distributors

Establishing partnerships with reliable suppliers and distributors is crucial for the success of your industrial unit. The UAE’s strategic location offers access to a wide range of suppliers, both regionally and internationally. Negotiate contracts that ensure a consistent supply chain for your business.

Step 8: Marketing and Sales

Develop a comprehensive marketing strategy to promote your industrial unit’s products or services. Leverage digital marketing, trade shows, and networking events to build your brand’s presence. Consider partnering with local businesses to expand your reach in the UAE market.

Step 9: Monitor and Optimize Operations

Regularly monitor your industrial unit’s operations and financial performance. Implement performance metrics and key performance indicators (KPIs) to track progress. Continuously optimize processes and operations to increase efficiency and profitability.

Step 10: Compliance and Reporting

Stay up-to-date with regulatory changes and tax obligations in the Hamriyah Free Zone and the UAE as a whole. Accurate financial reporting is crucial for maintaining compliance and ensuring smooth operations.

In conclusion, establishing an industrial unit in the Hamriyah Free Zone offers numerous benefits, but the process can be complex. To navigate this journey successfully and make the most of the opportunities available, it is highly recommended to seek the guidance of a reputable business consultant.


For a seamless experience in setting up your industrial unit in the Hamriyah Free Zone, we highly recommend partnering with BizDaddy. As a leading business consultant, BizDaddy possesses extensive knowledge of the UAE’s business landscape and the intricacies of the Hamriyah Free Zone. They can provide expert guidance on legal requirements, registration processes, compliance, and business strategy.