Establishing a company in the Hamriyah Free Zone

Establishing a company in the Hamriyah Free Zone. In the last decade, the United Arab Emirates has witnessed remarkable economic growth, as infrastructure has been strengthened and investment opportunities have expanded. Dubai enjoys a prominent position as a preferred business destination in the region, with many incentive initiatives to attract investors and stimulate economic growth, including free zones. The Hamriyah Free Zone stands out as one of the most prominent of these areas, as it provides an ideal environment for business and investments. Establishing a company in the Hamriyah Free Zone is a strategic and important step for ambitious businessmen and investors who seek to exploit the economic growth opportunities in Dubai. This region provides a favorable operating environment, and contains many modern facilities and facilities that facilitate conducting business with ease and ease. This article aims to explore in-depth the process of setting up a company in the Hamriyah Free Zone, focusing on the key steps, challenges and potential benefits. The legal and procedural requirements will be reviewed, in addition to the expected costs and competitive advantages that this region offers to start-ups and medium-sized companies.

What is Hamriyah Free Zone?

Hamriyah Free Zone is one of the most prominent free zones in the Emirate of Sharjah in the United Arab Emirates, and is considered an ideal destination for investors and businessmen wishing to establish their companies in a flexible and favorable business environment. The Hamriyah Free Zone was established in 1995 and aims to promote commercial and industrial activities by providing a set of incentives and facilities that include full tax exemptions, 100% foreign ownership, and providing advanced infrastructure. The region is characterized by its strategic location near Hamriya Port, which contributes to facilitating trade and transportation. The area also provides a variety of commercial spaces and warehouses, which meets the needs of companies of different sizes and activities. Thanks to these features, Hamriyah Free Zone has become a favorite destination for investors from around the world.

Establishing a company in the Hamriyah Free Zone

Establishing a company in the Hamriyah Free Zone provides many opportunities and advantages. Here are some important points in this regard:

• Flexible investment environment: Hamriyah Free Zone enjoys a flexible commercial environment suitable for business. Its flexible legislation and laws provide great freedom in organizing and managing the company.
• Low fees and taxes: Hamriyah Free Zone offers a beneficial tax structure for businesses. Companies registered in the region enjoy tax privileges such as corporate exemption from taxes on income and profits for a certain period.
• Access to the UAE Market: The UAE is a vibrant and diverse market. Thanks to its presence in the Hamriyah Free Zone, your company will have the opportunity to access this promising and growing market.
• Advanced Infrastructure: Hamriyah Free Zone contains advanced infrastructure, including logistics facilities and integrated industrial zones. There you will find modern offices, warehouses and logistical facilities that facilitate your business.
• Professional support and assistance: Consultation and professional support services are available in the Hamriyah Free Zone. You can benefit from the expertise and advice provided by consulting firms and business support institutions.
• Logistical presence: Hamriyah Free Zone is located in a strategic location near major ports and airports. This facilitates and helps facilitate the import, export and distribution of your products.

Steps to establish Hamriyah Free Zone companies

Establishing a company in the Hamriyah Free Zone requires following a series of legal and administrative steps to ensure compliance with local legislation and start the business successfully. Here are general steps that can be followed to establish a company in this region:

1. Market study and strategic planning: Conduct a careful study of the market to understand potential opportunities and challenges, and develop a business plan that defines goals and strategies for the company.
2. Choosing a company type: Decide on the appropriate company type, whether sole proprietorship, limited liability, or joint stock, based on business needs and goals.
3. Determine the company name: Choose a unique and distinctive name for the company and ensure it is available and conforms to local legislation.
4. Preparing legal documents: Prepare and submit the documents required to register the company, such as contracts, agreements, and required financial documents.
5. Submitting the application: Submit the company registration application to the competent authorities in the Hamriyah Free Zone, submitting all required documents and paying the prescribed fees.
6. Issuing licenses and permits: After approving the registration application, the competent authorities will issue the necessary licenses and permits to start work.
7. Opening a bank account: Open a local bank account for the company to manage financial operations.
8. Employee Insurance: The company may need to insure and register employees according to local laws.
9. Join a Chamber of Commerce: Join your local chamber of commerce to take advantage of business services and social networking.
10. Starting Business: After completing all legal and administrative procedures, the company can start conducting business and implementing its business plan.

Types of companies that can be established in the Hamriyah Free Zone

In the Hamriyah Free Zone in the Emirate of Sharjah, several types of companies can be established, including but not limited to:

• Limited Liability Company (LLC): This is a common form of corporation, where shareholders have limited liability.
• Public Joint Stock Company: It is a company that operates on the basis of shareholder contributions to capital.
• Sole Proprietorship: The business owner has full responsibility for all actions and risks.
• Subsidiary company: It is considered an expansion of a parent company located in another country.
• Company in the fourth layer: This company is subject to special regulation in the Hamriyah Free Zone, which requires that security, environmental, health and industrial requirements be met by the international center.

Commercial activities permitted in the Hamriyah Free Zone

In the Hamriyah Free Zone, a variety of commercial activities are permitted that cater to the needs of different types of companies. Commercial activities permitted in the Hamriyah Free Zone include:

• General trade: includes the buying and selling of various products and goods.
• Import and Export: Activities related to the import and export of goods and merchandise to and from outside the country are permitted.
• Industrial activities: include manufacturing and assembling products, and establishing factories to produce various goods.
• Professional services: such as consulting, technical services, financial services, and legal services.
• Warehousing and distribution: warehouse management and distribution of goods.
• Logistics activities: include managing freight and transportation and providing logistics solutions.
• E-business: related to online commerce and the provision of e-commerce services.
• Engineering and design works: includes providing engineering design services and engineering consultations.
• Marketing and Advertising: Providing marketing and advertising services to individuals and companies.
• Tourism and entertainment activities: Providing services in the tourism and entertainment sector.

The cost of establishing a company in the Hamriyah Free Zone

The cost of establishing a company in the Hamriyah Free Zone in Dubai is affected by several factors such as the type of company, the planned business size, and additional services that you may need. However, a rough estimate of the costs you may incur when establishing a company in this region can be provided:

1. Registration and licensing fees: These include fees paid to the competent authorities to register the company and obtain the necessary licenses. These fees may range from thousands to tens of thousands of UAE dirhams.
2. Legal consultation fees: You may need to consult a lawyer or legal advisor to help you prepare legal documents and ensure compliance with local laws. The cost of this consultation varies depending on the advisor and the scope of services provided.
3. Administrative services fees: You may need to pay administrative fees such as opening a bank account or renting an office or work space in the free zone.
4. Insurance and registration fees: Some companies may need to pay insurance or registration fees to comply with local legislation.
5. Labor Costs: If you intend to hire employees, you must factor in the costs of payroll, fringe benefits, and Social Security.
6. Advertising and Marketing Costs: A company may need to invest in advertising and marketing to promote its services and increase brand awareness.
7. Costs of additional consulting services: The company may need additional consulting services such as financial, marketing, or management consulting.

Types of licenses available in the Hamriyah Free Zone

Here is a table showing the types of licenses available in the Hamriyah Free Zone:

These licenses help companies meet their commercial, industrial and service needs in a flexible environment that supports growth and expansion.

Documents required to establish a company in the Hamriyah Free Zone

The papers required to establish a company in the Hamriyah Free Zone in Dubai vary depending on the type of company, its legal structure, and the commercial activities planned to be carried out. However, basic documents that are usually required include:

• Registration application form: This is the document that is filled out and submitted to the relevant regulatory authorities to request registration of the company.
• Agreement document or articles of association: This is a document that defines the company’s structure, the powers of the officials, and the type of business it will carry out.
• Passport and copy of residence visa: for shareholders, directors and any other partners who may be necessary.
• Personal photos: for shareholders and directors.
• Certificates certified by banks: proving the efficiency of shareholders in financing the company.
• Lease contracts or ownership documents: to confirm the address of the company’s headquarters.
• Financial Reports: Financial updates for shareholders.
• Form to obtain a work permit: if there are plans to employ employees.
• Reports on planned activities: You may need to provide detailed reports on the company’s proposed business activities.
• Residence Permit Affidavit: In some cases, the authorities may request a Residence Permit Affidavit for shareholders or employees.

In conclusion, establishing a company in the Hamriyah Free Zone is an important strategic step for entrepreneurship and taking advantage of the advantages and business opportunities available in this distinguished region. In cooperation with Itqan Company, you can achieve this goal efficiently and successfully.

The process of establishing a company begins with studying the market and analyzing the available opportunities, and here comes the role of Itqan Company to provide you with the information and analysis necessary to make sound strategic decisions. The company helps you develop a comprehensive business plan that defines your goals and defines marketing, operational and financial strategies.

After determining the appropriate type of company and obtaining the necessary licenses, Itqan Company provides advice in implementing the procedures for establishing the company and officially registering it in the Hamriyah Free Zone. This includes infrastructure, operational, legal and tax compliance arrangements.

Cooperation with Itqan Company is also beneficial in obtaining the necessary work permits and visas for foreign employees, and benefiting from the benefits and privileges provided by the Hamriyah Free Zone, such as tax exemptions and customs facilities.

In addition, Itqan Company can provide support in finding local partnerships with other companies in the Hamriyah Free Zone, which contributes to expanding your customer base and enhancing the growth of your company in the local and regional market.

In short, establishing a company in the Hamriyah Free Zone requires precise steps and procedures, but in cooperation with Itqan Company, you can benefit from its experience and knowledge in the field of establishing companies. The company provides the support and consultation necessary to succeed and achieve your business goals.

Frequently asked questions about establishing a company in the Hamriyah Free Zone