All about the Hamriyah Free Zone
Hamriya Free Zone Sharjah Location
Also known as the Al Hamriyah Free Zone, the industrial zone in Sharjah was established in 1995. Home to around 6,500 businesses from over 163 countries, the area is located in Sharjah, the third-largest emirate in the UAE and the Cultural Capital of the Arab World as declared by UNESCO. With the Gulf of Oman to the East and the Arabian Gulf to the West, the emirate also enjoys a favourable geographical perspective. Sharjah also has a strategic location between the Far East and Europe — providing access to important emerging markets in countries like the Kingdom of Saudi Arabia, India, Iraq and Iran.
Why set up a business in the Hamriyah Free Zone?
The emirate of Sharjah is the only one that has ports on the coast of the Arabian Sea and Arabian Gulf, which make it an integral part of the global supply chain with access to global shipping networks. The Hamriyah Port is a centre for exports in international markets. The prime coastal location is enhanced thanks to Sharjah’s well-connected road network which also connects the area to Oman, Bahrain and further on. In addition to being a hub for oil and gas companies, other highlights include the HFZA Maritime City where investors can augment opportunities like shipbuilding, repair, offshore fabrication and others.
Advantages
In addition to strong land, sea and air connectivity, setting up a business in the area — specifically via the Hamriyah Free Zone Authority (HFZA) — comes with the following benefits:
- Full foreign ownership
- No re-export, export or custom duty
- Renewable short and long-term lease options
- Access to the GCC and UAE markets
- Online service for visas, renewals and other applications
- Business set up in an hour
- Access to a 4-metre deep inner harbour and 14-metre deep port
- Special benefits in VAT
- 24-hour security
- Fixed land lease rates for the first 10 years
- Plots can be developed for up to 60% by investors
- Telecommunications infrastructure
- A good road network, electricity and water infrastructure
- Onsite customs facilities and labour accommodations
Wide choice of warehouses and offices
The Hamriyah Free Zone features a variety of warehousing options and well-equipped offices for business owners. Here is an overview:
Warehouses
In terms of warehousing, the commercial area in Sharjah offers investors a range of pre-built units ranging from 276 sq.m to 614 sq.m in size. All warehouses are made in compliance with environmental and government safety regulations and include perks like ample parking spaces as well as appropriate infrastructure for IT requirements and utilities.
Well-equipped offices
State of the art communication facilities and flexible spaces are just some of the many office amenities offered at the Hamriyah Free Zone. Executive offices start from 15 sq.m with executive suites ranging from 22 sq.m to 40 sq.m. Other benefits include annual renewable leases, a ready IT infrastructure, conference rooms with internet facilities, ample parking spaces, and more.
3 types of licenses
The HFZA offers three types of business licenses to business owners looking to operate profitable ventures in the region:
- Industrial License: The license allows holders to import raw material for processing, packaging, assembly, manufacturing and related purposes. Holders can use local distributors and agents for products to be sold in the UAE market.
- Commercial License: The license allows holders to export, import, distribute, sell and store items as specified in the license. This also includes Specific Trading, General Trading (for up to 3 to 5 activities) and E-commerce.
- Service License: The license allows holders to operate services that are specified on the license and only within the Hamriyah Free Zone.
Setting up a business at the Hamriyah Free Zone
How can I start a free zone business in the UAE? Business owners hoping to expand or start a venture in the nation have probably asked themselves the same question. Thanks to the mentioned benefits, a lot of them have turned to the Hamriyah Free Zone. Additionally, a convenient setup process is also a major advantage.
Setup Process
The Hamriyah Free Zone Authority offers three types of legal statuses:
- Free Zone Establishment (FZE) with one shareholder
- Free Zone Company (FZC) with 2 to 5 shareholders
- Branch of a local or international company
Regardless of the type of license required, business owners can establish companies with the HFZA in 3 steps:
- – Submit signed application forms with required documents
- – Make the payment
- – Collect the trade license
Documents required for the application differ for a free zone establishment and branch company. For example, requirements for a free zone company include a copy of the shareholder’s and manager’s passports. Documents for a subsidiary company include a certificate of incorporation, copy of the parent company’s license, an incorporation certificate and other details.
For a full list of requirements, visit the HFZA website.
Packages and Facilities
The HFZA offers a range of packages for those looking to open businesses or lease warehouses. Here is what the offerings cover:
- HBC Offices: 2 packages for FZE offices with details on import and export trading with provision to apply for one visa for HBC (Hamriyah Business Centre) offices
- E-Office: 3 packages for FZE and FZC with a maximum permit for 7 visas with offerings like import/export trading for a certain number of services and categories
- Executive Office: 5 packages with Package 1 including a commercial license for trading up to five specified products. Annual payments include AED 3,500 and AED 12,000 for General Trading with a yearly service fee of AED 5,000.
- Warehouse: 3 packages with Package 1 including an annual AED 3,500 license fee and a one-time AED 9,000 charge as incorporation fee. Warehouses or factory spaces offered in each package differ in size and facilities
- Land: Available for short and long-term leases, plots from the HFZA start from 2,500 m2 with the starting price at AED 30/m2
E-Service
For convenience, All HFZA business owners are given exclusive access to an online service. The service includes an HFZA Investors E-Portal and Document Services amongst others. Document services include an HFZA Company License, Electronic Document and Contract Verification services. Other services include VAT Registration for vendors and suppliers where they can update their tax registration numbers and certificates.
Clients will need to register on the online portal for a username and password with a secondary option of logging in with an Emirates ID or email address.
Hamriyah Free Zone Industries
In addition to the availability of office and warehouse facilities, easy access to Emirates Road (E611) and Sheikh Mohammed bin Zayed Road (E311) facilitate the business environment at the Hamriyah Free Zone. On that note, here is a list of industries covered by the HFZA:
- Building Materials
- Heavy Industry
- Food
- Logistics and Transportation
- Oil and Gas
- Packaging
- Petrochemical
- Perfume and Cosmetics
- SMEs
- Recycling
- Timber
- Steel
- Textile
- Marine
Amongst all the infrastructure requirements, the Food Park deserves special mention. A well-endowed platform for those looking to thrive in the food industry, the area is a hub for dedicated to the food and allied commercial industries that deal in processing, importing, exporting and repacking of foodstuffs. Those looking to set up businesses in the food industry can benefit from the Food Park. Valued added services offered in this regard include certification for Halal services, food testing and lab services.
For a more comprehensive list of services and licensing requirements, contact the Hamriyah Free Zone Authority:
- Contact: +971-6-526-3333
- Direct: +971-6-513-3471
- Email: bdd@hfza.ae
We hope our review of the Hamriyah Free Zone in Sharjah helps those looking to set up business in the emirate and take advantage of a booming GCC market. Thinking of expanding your business to other emirates? For information on free zones in the emirate, check out our guide to understand what is a free zone in Dubai before you make a decision. Looking for visa information as an investor? Find out how the new UAE long term visa can benefit investors in the country.
For more information on free zones in the UAE, stay tuned to MyBayut.
Cover image credit: Hamriyah Free Zone, Sharjah
