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Hamriyah Free Zone

Hamriyah Free Zone

Hamriyah Free Zone is considered one of the most popular free zones in the UAE. It is located in the Emirate of Sharjah and includes commercial and industrial type facilities. The economic zone offers preferential conditions for doing business, so it will interest entrepreneurs who want to expand their business and enter the world market.

Advantages of the UAE and the Emirate of Sharjah

Advantages of the Emirates in doing business:

  1. The presence of a diversified economy based on knowledge, innovation and technology, which made it possible to attract companies and people from all over the world and turn the UAE into a well-known economic center.
  2. The country is attractive for direct investments from foreign investors in the regions of the Middle East and Africa.
  3. The highest incomes per capita.
  4. Unprecedented quality of life.
  5. The safest place in the world.

Advantages of Sharjah:

  1. In 1998, he received the title of the “cultural capital” of the Arab world from UNESCO.
  2. The third largest emirate – occupies 2590 km2.
  3. An outstanding center for doing business due to its favorable geographical location.
  4. It has access to the Persian Gulf (in the west) and the Gulf of Oman (in the east).
  5. Takes 11- e place in the world among the most attractive international destinations for investment.
  6. It is distinguished by the highly developed infrastructure of the city, low rent and payment of utility bills.
  7. Located near the main trade routes.

Overview of the Hamria Free Zone

Overview of the free zone

The Hamria Frizone was founded in 1995. There are world objects located on its territory, and the zone itself is ready to offer a wide range of business services.

Characteristics:

  1. Area – 30,000,000 m2.
  2. More than 6,500 investors from 162 countries.
  3. It is considered the 2nd largest frizone.

Hamria’s main mission is to develop its profitability, efficiency and profitability in the region, as well as demonstrate the desire for excellence and develop highly qualified specialists.

Values of the frison:

  • honesty;
  • innovation;
  • intelligence;
  • inspiration.

Why is Hamriyah Free Zone so good for business?

In addition to reliable land, sea and air communication for export to international markets, the creation of a business in Hamria gives other advantages:

  • full-fledged foreign ownership;
  • no re-export, export, customs duty;
  • renewable lease is available – both short-term and long-term;
  • preferential VAT conditions;
  • telecommunications infrastructure;
  • business formation in an hour;
  • access to the UAE and Gulf markets;
  • fixed rental rates of land plots for the first 10 years;
  • the opportunity to be a built-up investor up to 60%;
  • online service for extensions and other operations with visas, applications;
  • round-the-clock security;
  • availability of customs facilities and premises for workers;

Frison supports small and medium–sized businesses in achieving their commercial goals – from the launch stage to international expansion. An additional bonus is preferential “E–Office” packages, thanks to which you can quickly and easily launch a small business. This option is ideal for 1-5 people in business.

Business sectors in HFZ

The free zone includes several business sectors.

Oil and gas sector

Oil and gas sector

The oil and gas zone covers 4.6 million sq.m., attracts more than 1,200 investors and is ready to provide 1.2 million sq.m. of land for rent for a warehouse. It makes it possible to implement projects related to mining and processing.

The sector has several subsectors:

  1. Study.
  2. Extraction.
  3. Production.
  4. Cleaning plant.
  5. Storage.
  6. Transport.
  7. Distribution.
  8. Petrochemical trade.
  9. Engineering services.
  10. Repair and maintenance of equipment.   

Food Park

The food park with an area of 11 million square meters offers investors a lot of exclusive services:

  1. Food safety and quality training.
  2. Communication with food experts, as well as investors in this field.
  3. Coaching and mentoring.
  4. Warehouses, production facilities, packaging, logistics facilities.
  5. Interaction with regulatory authorities, including the Sharjah Municipality.

Subsectors:

  1. Production.
  2. Logistics.
  3. Processing, storage.
  4. Trading.
  5. Packaging, repackaging.

Industrial production park

Industrial Production Park

The production park with an area of 30 million square meters supports the steel, woodworking, telecommunications, and household industries. Most of the steel producers work here, due to which the facility has the status of a world one. All this is supported by a focus on investors who can rent land for 25 years.

Sub-sectors:

  1. Steel.
  2. Wood.
  3. Plastic.
  4. Building materials.
  5. Furniture, its components.
  6. Mechanisms, equipment.
  7. Glasses.
  8. Engineering.
  9. Used clothes.
  10. Paper, articles made of it.

Marine industry

The integrated maritime territory with access to the deep-water (14 m) and inland (7 m) ports includes land plots. They are essential tools for shipbuilders and investors in the development of their business.

There are licenses for the opportunity to engage in:

  1. Drilling, shipbuilding.
  2. Repair.
  3. Re-equipment of ships.
  4. Offshore production, ship maintenance.

Subsectors of the marine industry:

  1. Marine, coastal works.
  2. Marine manufacturing and installation.
  3. Engineering and related services.
  4. Construction of ships, boats.
  5. Trade in marine equipment.
  6. Production of oil rigs.
  7. Consultations on the management of ships.

Global Logistics Park

Global Logistics Park

Thanks to the global logistics park, you can keep in touch with your customers without interruption. Sharjah is the only emirate with ports on the coast of the Persian Gulf and the Indian Ocean.

Everyone can take advantage of 3 world-class seaports and an international airport that receives an average of 153 flights out of 85 daily. This gives competitors access to the market in the MENA regions and beyond.

As a result, you get a full range of services, support by land, sea, air and excellent telecommunication channels.

Subsectors:

  1. Storage.
  2. Logistics.
  3. Transport.
  4. Consumer goods in packaging.
  5. Distribution.
  6. Packaging/repackaging services.
  7. E-commerce Center.
  8. Freight forwarding.

Accelerator

The accelerator supports small and medium–sized enterprises in the main sectors – from offers of economical rental of office space to effective procedures for obtaining a license. Thanks to the connection of the frizone, you will be able to interact with the right people without hindrance within the framework of business.

Subsectors:

  1. E-commerce.
  2. General trade.
  3. Tech startups.
  4. Software and web development.
  5. Consultations and professional services.
  6. Telemarketing.
  7. Representative offices.
  8. Research centers.

Infrastructure for business

Infrastructure for business

Hamriyah offers office space for managers, ready-made warehouses, industrial areas. All these objects can be customized to meet the requirements of your business.

Offices

Cost–effective offices are a great option for supporting new entrepreneurs:

  1. Objects from 10 m2.
  2. Luxury office blocks with an office from 12 m2.
  3. Free parking spaces.
  4. Office area of 15-25 m2.
  5. Ready-made infrastructure for telecommunications.
  6. Annual lease renewal.
  7. Flexible office packages for business development.
  8. There are many permitted activities.
  9. Full ownership, repatriation of capital.

Warehouses

In the frison, you can rent prefabricated warehouses of international standard. They are equipped with roller shutters, lighting and a loading platform:

  1. Available objects with an area of 200, 400, 600 m2.
  2. Suitable for light and medium-sized industrial companies.
  3. The premises have a reception room, offices, toilets and a storage room.
  4. Load capacities are 20, 30, 50, 100, 120 and 150kW.
  5. Dimensions – 7 m and 9 m in height.
  6. Each unit has a loading zone.
  7. The device of the mezzanine floor is provided.
  8. Availability of parking spaces in front of the blocks.
  9. Built-in fire alarm and sprinkler system

Land plots

The zone offers land with an area of 2500 m2. Advantages:

  1. Competitive rental rates.
  2. Better industrial zones with sea views.
  3. Availability of minimum fixed land rates for the first 5 years.
  4. The possibility to renew the lease for 25 years.
  5. Availability of a flexible visa quota.
  6. Developed road infrastructure.
  7. Development of plots up to 60% according to the requirements.
  8. Working rooms with leisure facilities.
  9. Extensive transport network.
  10. Round-the-clock security.
  11. Access to the main port and strategic location.

What should be considered when opening a business in this zone?

What to consider when starting a business in this zone

Before starting a business, you should pay attention to the important features of the zone.

What companies can be opened in this zone?

In Hamria, they are available for creation:

  1. Firms with the 1st shareholder – they are called “Free Zone Establishment”.
  2. Organizations in which the number of shareholders varies from 2 to 5 – “Free Zone Company”.
  3. A subsidiary of a local or international organization.

License types

The following licenses are available in frison:

  1. Commercial license. Trading allows you to import, export, sell, distribute and store items from the license. With General Trading, you can sell an unlimited number of products. E-commerce or e-commerce allows you to trade through an electronic network.
  2. Service license. If available, you can consult and provide other services specified in the license agreement.
  3. Industrial license. Allows you to import, process products, as well as package and export finished products.

Company structure

The company consists of directors, secretary and participants, information about which is in the public domain.

Directors

Only an individual resident of the Emirates can become a director. The exception is if the director does not work in the country. There can be from 1 to 5 directors.

Secretary

Only a natural person can also become a secretary. At the time of submitting the application, you need to specify separately who will be the secretary. Otherwise, they will be assigned a director.

Participants

Shareholders can be both an individual and a legal entity. The minimum number is 1 person. There are no requirements for residents and the presence of a local shareholder in the company.

Authorized capital

Authorized capital

The company has the right to issue shares of only one class. It is forbidden to issue to bearer. Finances during registration must be only in the national currency – dirhams. Each share must be issued for 1000 AED or a multiple of this indicator.

You do not need to provide a letter from the bank confirming the payment of capital.

Approximate registration costs

Approximate expenses:

  1. The registration fee is 9,000 dirhams or $2,466.
  2. License – 3000 dirhams or $822.
  3. Flexi-desk – 22000 dirhams or $6027.
  4. The total amount is 34,000 dirhams or $9315.

When renting a flexible desk, only the owner of the company can get a resident work visa.

Company registration in Hamriyah Free Zone

When registering a company, both parties must draw up an office lease agreement. His address will be the official legal address of the company. At the same time, the rental of additional offices or warehouses remains available.

Decide on the type of activity

Frison offers different office packages – it all depends on the needs of clients in terms of activities, the number of licenses and visas. You can rent a virtual office, warehouse, labor camp or a plot of land.

Depending on the type of licenses mentioned above, you can choose the type of activity. For example, with a service license, you can consult on marketing, IT, projects, with commercial – trade, with industrial – packaging, assembling goods.

Some licenses may require the consent of the ministry and some service, for example, in relation to production. 

Pay for services

In addition to paying for the services of a lawyer who helped in the registration process, you need to leave a deposit to cover other expenses. For example, it can be notarial moments, etc.

Submit documents

Documents for starting a business

The documents must be submitted in their original form or photocopies certified by a notary:

  1. Internal and international passport.
  2. A document that confirms the address (if there is no registration mark in the passport).
  3. CV (resume).

Shareholders will also be required to:

  1. A photocopy of the passport on the page where the stamp of entry to the Emirates is indicated.
  2. Questionnaire data in writing: contacts, address and others.

Shareholders must visit the Emirates at least for one day for a fresh stamp of entry.

In some cases, a business plan may be requested, for example, if you register a company with a service license. 

How do I get a visa?

There is no residence permit in the Emirates. According to the migration rules, resident visas are issued, which are its analogue.

You can get an investor visa if you have an onshore company in the Emirates, and a work visa if you have an employment contract with such a company.

The number of visas depends on which business package you choose. More often, an investor’s visa is given for 3 years, and a working one for 2. As soon as the validity period ends, it can be extended.

Visa processing process:

  1. Issue an Establishment Card (open the company’s migration file) – 10 days. The document entitles the company to issue visas in the future.
  2. Apply for a resident visa and get an Entry Permit (entry permit) – 7-14 days. It is necessary to enter the territory of the Emirates with this permit.
  3. Go to the UAE to get a visa – most often the process takes 5 working days. To receive it, pass a medical examination – a blood test and fluorography, as well as provide biometric information – retinal and fingerprint scans. When you get a passport with a visa, you can leave the country.
  4. Get an Emirates ID. The card will be issued a few days after the visa. It is not necessary to be present in person.

If you, as an applicant, will not be in the territory of the Emirate for more than six months, the visa will be canceled. The cost of obtaining a visa is from $ 4,200.

Further work with the company

Let’s look at how to work with a company after its registration.

Income tax

Firms in the frisons are exempt from many taxes on:

  • profit;
  • capital gains;
  • property.

The exception to the rule is VAT.

VAT

VAT

VAT has been applied in the Emirates since 1.01.2018. It acts in relation to all types of activities. An exception is if the action is released or the zero rate is not applied to it.

The VAT rate is 5%. It is not necessary to become a tax register until the turnover within the country does not exceed the registration threshold – 375,000 dirhams or $ 100,000.

For VAT, you need to register at:

  • possible excess turnover within 30 days. For example, if a contract is concluded;
  • exceeding the turnover threshold at the end of the month for the last year;
  • receiving services by the company that are subject to inclusion in the reporting on reverse taxation for an amount exceeding the established threshold.

You can also register on your own initiative after the threshold of 187,500 dirhams has been exceeded. The registration process in TRN lasts 20 days (excluding weekends). After that, you need to submit a VAT declaration every quarter and pay the amount no later than 28 days after the VAT period ends. 

Audit and accounting

Companies in Hamria must confirm their financial position through accounting records. It is also important to reflect up-to-date data on the company’s assets in them. 

Another important nuance is the annual preparation of reports and audit. In the frison, you can temporarily be exempt from submitting reports to government agencies. But a personal consultant will be able to give detailed information.

The duration of the first reporting period is from six months to 18 months. It depends on the form of doing business and the date of registration. The following periods last a year from the date of the first one.

You need to prepare and submit a company report in 3 months. Firms with branches (ownership share of more than 50%) must prepare reports of a group of interconnected organizations.

License renewal

The main commitment of the company in Hamriyah Free Zone is to renew the license every year. To do this, you need to pay a fee and a lease agreement. You need to renew the company 30 days before the year from the date of issuing the license. The total price includes the extension:

  • lease agreement;
  • license;
  • postal address (P.O.Box).

Upon renewal, you receive an updated license.

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