Free zone companies can be formed in Sharjah under any of these two zones:
- Sharjah Airport International Free Zone: Popularly known as SAIF zone, Sharjah Airport International Free Zone was set up in 1995. It is huge, and houses about 6000 companies hailing from over 90 countries. It also has a very strategic location and is situated at crossroads between major trade routes that link the east to the west. In addition to this, it is located close to the Sharjah International Airport and forms a major hub for cargo.
- Hamriyah Free Zone: Hamriyah Free Zone was also set up in the year 1995, and is often considered one of the benchmarks of industrial development in Sharjah. This free trade zone offers geographic advantage unmatched by any other in the UAE and offers convenient access to major international markets, be it by air, land or sea. It is an investment oriented free zone and offers flexibility and dynamism. This zone is suitable for companies that come under the category of small and medium enterprises (SMEs).
Benefits of Setting Up a Company in Sharjah Free Zone
- Sharjah is a famous industrial hub, producing 48% of the industrial output of UAE. Sharjah ranks among the top 10 cities for conducting business in the Gulf region. Thus, a prospective businessman may find it beneficial to set up one’s company in Sharjah.
- Sharjah’s strategic geographical location (near Africa as well as Europe) makes it a suitable place for setting up a trading company. This along with UAE’s state-of-the-art infrastructure makes Sharjah a perfect location for doling out product distribution services.
- Because Sharjah is an emirate of the UAE, if one sets up a business in Sharjah, no corporate income tax, withholding tax, value added tax, import/export tax or capital gains tax is levied on them. Moreover, a person moving to Sharjah won’t be required to pay personal income tax either.
- Free zones in Sharjah have to offer sundry incentives for company formation, like
- Exemption from taxes and foreign duties
- 100% foreign ownership
- Full repatriation of capital
- Superb infrastructure
- A company incorporating in Sharjah shall benefit from generous government subsidies granted to the energy and utilities sector. As a matter of fact, the government bears 70% of the cost of electricity and water consumption
- A company in Sharjah would also profit from the 66 double tax treaties signed by the UAE with countries like India, China, Japan and Singapore, to decrease withholding taxes on payments abroad.
Sharjah Free Zone – Legal Entities
Two types of companies or legal entities can be formed by corporates in Sharjah Free Zones based on the type of shareholding. These are:
- Free Zone Establishment (FZE): It is a single shareholder limited liability company
- Free Zone Company (FZC): It is multiple shareholder limited liability company that can be set up with a maximum of 2 to 5 shareholders
Documents Required for Sharjah Free Zone Company Formation
The following documents are required for registering a company in Sharjah:
- Licence form
- Approval from the Ministry of Economy
- Approvals from other government entities, if called for
- Certified copy of the tenancy contract
- Certified No Objection letter, passport, visa and residency Xerox copies of the shareholders
- Land map or ownership certificate Xerox copy
- Lease agreement [Having a physical address for one’s business/office is mandatory in the UAE. The rent on an average within a free zone area is US$ 25 up to US$ 45 per square feet (US$ 225 up to US$ 400 per square metre)]
- Legal Affairs approval
- Partnership contract certified by the Public Notary
- National ID and family book Xerox copies
- Sign board
- Technical evaluation report
- Trade name certificate, as a proof of trade name reservation
Types of Licence in Sharjah Free Zone
Three types of business licenses are provided in Sharjah free zones:
- Commercial License: For any kind of trading activity
- Industrial Licence: To set up a manufacturing or industrial activity
- Professional License: For service providers
A business license is required to set up a company and practice the business activity in Sharjah Free Zones as per the specific regulations of that free zone. In order to obtain the business license, the primary step is selecting the type of business activity to be performed in the region, as business activity determines the number of licenses required.
Setting up a business in Sharjah Free Zone envisages huge profit potential, tax exemptions, world-class infrastructure, modern amenities and free trade barriers. Business Setup Worldwide helps global investors, businessmen, and corporates set up company in Sharjah while availing all the advantages that a developing economic trading hub provides. Our team is well equipped to help you manage your regulatory matters in a professional and secure manner, suiting specific business needs. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities, and allow corporates to enjoy their company formation process without worrying about the bureaucratic red tape and legal formalities.