What is the process of setting up a company in Hamriyah Free Zone?
Setting up a company in the Hamriyah Free Zone is a strategic choice for entrepreneurs and businesses looking to establish a presence in the United Arab Emirates (UAE). The Hamriyah Free Zone, situated in Sharjah, offers a business-friendly environment with numerous advantages, including tax exemptions, 100% foreign ownership, and modern infrastructure. In this comprehensive guide, we will walk you through the step-by-step process of setting up a company in the Hamriyah Free Zone, providing you with the essential information you need to embark on your business journey.
1. Determine the Type of Company:
Before diving into the company setup process, it’s essential to determine the type of company you want to establish in the Hamriyah Free Zone. The free zone offers several options, including:
- Free Zone Establishment (FZE): This allows for a single shareholder, whether an individual or a corporate entity.
- Free Zone Company (FZC): FZCs permit multiple shareholders (up to a maximum of 5).
Identifying the right company structure will depend on your business objectives and ownership requirements.
2. Business Activity Selection:
Choose the specific business activity or activities you intend to engage in within the Hamriyah Free Zone. Ensure that your chosen activities align with the free zone’s regulations and the type of business license you plan to obtain.
3. Reserve a Company Name:
Select a unique and appropriate name for your company and submit it for approval to the Hamriyah Free Zone Authority (HFZA). The name should comply with HFZA’s naming conventions and not conflict with any existing registered entities.
4. Submit Application and Documents:
Prepare and submit a company setup application to the HFZA. Along with the application, you will need to provide several documents, including:
- Passport copies and proof of residence for shareholders and directors.
- A business plan outlining your company’s activities, financial projections, and objectives.
- Bank reference letters and personal and professional references.
- Duly filled application forms provided by the HFZA.
Ensure that all required documents are accurate, up-to-date, and comply with HFZA’s regulations.
5. Lease Agreement:
Secure a physical office or warehouse space within the Hamriyah Free Zone and sign a lease agreement. The size and type of space you require will depend on your business activities. The lease agreement is a crucial part of the setup process and is necessary for obtaining your business license.
6. Approvals and Inspections:
Depending on your business activities, you may need to obtain specific approvals and undergo inspections by relevant authorities. These could include health and safety inspections, environmental approvals, or approvals from industry-specific regulators.
7. License Application:
Apply for the relevant business license from the HFZA. The type of license will depend on your chosen business activities. Common license types in the Hamriyah Free Zone include industrial, commercial, and service licenses.
8. License Issuance:
Once all requirements are met and approvals are obtained, the HFZA will issue your business license. This license is your legal authorization to conduct business within the Hamriyah Free Zone.
9. Visa and Labor Approvals:
If you plan to employ staff within the Hamriyah Free Zone, you will need to apply for labor approvals and residence visas for your employees. This process typically involves medical tests and other screenings as required by the UAE authorities.
10. Commence Business Operations:
With your business license and other necessary approvals in hand, you are ready to commence your business operations in the Hamriyah Free Zone.
11. Compliance and Reporting:
It’s essential to 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 the smooth operation of your business.
BizDaddy – Your Trusted Business Consultant
For a seamless and efficient experience in setting up your company in the Hamriyah Free Zone, we highly recommend partnering with BizDaddy. As a leading business consultant with extensive knowledge of the UAE’s business landscape and the intricacies of the Hamriyah Free Zone, BizDaddy offers several advantages that can greatly benefit your company setup process.