Establishing a company in the Sharjah Free Zone

Free zones in the UAE, including Sharjah, are an ideal destination for entrepreneurs seeking to establish a company in the Sharjah Free Zone. Sharjah Economic Freedom Zones provide a sophisticated investment environment that combines tax and administrative facilities with advanced infrastructure, making them an attractive option for local and international investors alike.

In this article, we will discuss the basic steps and requirements necessary to establish a company in a free zone in Sharjah, in addition to the benefits of investing in these areas and the potential challenges that can be faced. We will also highlight permitted business activities and simplified registration and licensing procedures.

Establishing a company in the Sharjah Free Zone

Privileges of establishing a company in the Sharjah Free Zone

Establishing a company in a free zone in Sharjah provides a range of privileges and benefits that make it an attractive option for investors. Here are some of the key perks of setting up a company in a free zone in Sharjah:

1. Full foreign ownership: It allows foreign investors to fully own their companies without the need for a local partner.
2. Tax exemptions: Companies in the Hurriya areas of Sharjah enjoy complete exemption from income taxes for a period of up to 50 years, subject to renewal.
3. Simplified registration procedures: Al Hurriya Zones in Sharjah provides simplified and fast registration and licensing procedures, facilitating the process of setting up companies.
4. Facilitated customs policies: Freedom Zones in Sharjah provide customs exemptions for import and export, which helps reduce operating costs and increase the profitability of companies.
5. Advanced infrastructure: Al Hurriya areas in Sharjah are characterized by advanced infrastructure that includes modern communications facilities, logistical ports, and production and manufacturing areas, which supports efficient business growth.
6. Easy access to regional and global markets: Thanks to its strategic location, Al Hurriya Zones in Sharjah facilitates companies’ effective access to regional and global markets, which enhances opportunities for growth and expansion.
7. Freedom to transfer capital and profits: Investors have complete freedom to transfer capital and profits outside the country without any restrictions, which enhances the flexibility of their financial operations.

Documents necessary to establish a company in the free zone 

To establish a company in a free zone in Dubai , you usually need to submit a set of basic documents. The required documents may vary slightly depending on the type of company and the free zone you choose, but generally, here are the common documents you may need:

• Copy of passport: for all shareholders and directors concerned with the company.
• Personal photographs: of both shareholders and directors concerned.
• A simple business plan: It explains the company’s goals and its financial and administrative plans.
• Company establishment application form: Submitted to the chosen free zone authority.
• Trust Agreement or Articles of Association: A document setting out the basic details of the company such as business activities and the rights of shareholders and directors.
• Proof of the company’s legal headquarters: This usually requires a lease or ownership contract for the place where the company will be based.
• Simple financial report: It can be requested in some cases to show the financial capacity of the company.
• Additional documents as needed: You may need additional documents depending on the type of company and the requirements of the local authorities in the free zone.

Necessary procedures for establishing a company in the free zone

Establishing a company in a free zone in the UAE, such as a free zone in Ras Al Khaimah, usually includes the following procedures:

1. Choosing the type of company: You must first determine the type of company to be established, such as a limited liability company (LLC), sole proprietorship, or joint stock company.
2. Determine the business activity: You must determine the activity the company will undertake, which must be in line with local licenses and permits.
3. Choosing a company name: You must choose a name for the company and ensure that it complies with local laws and is not similar to the names of other companies.
4. Submitting the application and documents: An official application to establish the company is submitted to the free zone authorities, along with submitting the required documents such as copies of passports, copies of qualifying certificates, and the appropriate company form.
5. Approval and payment of fees: After submitting the application, it is reviewed and processed by the relevant authorities, and if approved, the applicable fees are paid.
6. Obtaining a commercial license: After completing the procedures, a commercial license is granted to the company, allowing it to start commercial activity in the free zone.
7. Residence visas: Some free zones may require residence visas for managers or employees, which are arranged after obtaining the business license.

Types of licenses in the Sharjah Free Zone 

In the Sharjah Free Zone, there are various types of licenses available that suit different types of commercial and industrial businesses. Among common licenses can include:

1. General Commercial License: This license allows companies to practice general commercial activities such as trade, distribution, retail and wholesale.
2. Industrial licence: granted to companies operating in the field of industry and product manufacturing.
3. Professional License: Granted to an individual who provides professional services such as consulting, medicine, engineering, law, and others.
4. Service licence: Granted to companies that provide intangible services such as logistics, transportation, consulting, administrative, and others.
5. Individual License: Granted to individuals who wish to start a business as an individual without establishing a company, such as wholesale or retail trade

The cost of establishing a company in the Sharjah Free Zone

The costs of establishing a company in a free zone in Sharjah vary based on several factors, including the type of company and the activity it undertakes. Here’s an overview of expenses that may typically be included:

• Licensing and registration fees: These fees include the costs of registering the company and obtaining the appropriate business license, which vary depending on the type of company and activity.
• Consulting and Legal Services Fees: You may need advice from an attorney or legal advisor to assist you with the incorporation process and ensure compliance with local laws, which may add to the costs.
• Rental and office fees: If you need office space in the free zone, you will incur rental costs for the office, and this depends on the location and size of the space required.
• Required capital: Some types of companies may require that the specified capital be deposited in the local bank account.
• Other government fees: The incorporation process may require payment of administrative or other fees to local authorities.
• Annual Maintenance Costs: After incorporation, you will incur annual costs for maintaining the company and renewing licenses and licences.

In this article, we have explored many important aspects of establishing a company in a free zone in Sharjah, as these areas have exceptional investment privileges that make them a preferred destination for investors. With full tax exemptions, full foreign ownership, and simplified registration procedures, setting up a business in this stimulating environment represents a real opportunity for growth and expansion.

Taking advantage of the advanced infrastructure and easy access to regional and global markets, entrepreneurs can find in Sharjah’s Hurriya areas an ideal environment to develop their ideas and achieve their business goals. Establishing a company here is not just an investment in the present, but rather an investment in the future, with the promise of further development and prosperity in the coming years.

The most frequently asked questions about establishing a company in Sharjah