Hamriyah Free Zone

The Hamriyah Free Zone Authority (HFZA) is an industrial-based free zone within the Emirate of Sharjah in the United Arab Emirates. Being founded in November 1995 by an Emiri decree, HFZA has turned into the central portal of industrial and commercial resources that is appealing to companies anywhere in the world.

Key Features of Hamriyah Free Zone

Strategic Location: Sharjah has an advantage of being at the mouth of the Arabian Gulf and the Gulf of Oman and it is in a good position as the country of HFZA to be used in conducting trade between the Far East, Europe, and in other developing markets like India, Saudi Arabia, and Iran.
Size and Infrastructure: HFZA, which covers a 30 square kilometres area, has become a deep-water port (14 meters) and inner harbour (7 meters) as well as industrial plots and warehouse and office spaces that can be made available according to the business needs.
Accessibility:
The area has excellent connectivity through the means of major highways, three seaports and Sharjah international airport. That is why it is an ideal place of logistics and trade.
Business Opportunities and Benefits
More than 6,500 companies representing more than 160 countries operate in HFZA based in many different industries including oil and gas, petrochemicals, food production, steel, logistics, etc. It has got a number of benefits:

Specialised Zones

HFZA has dedicated sub-zones tailored to specific industries:

1 Oil & Gas Zone

2 Steel City

3 Maritime City

4 Timber Land

4 Perfume Land

Food Park (focused on food processing and allied industries)

Tax-Free Environment: Businesses enjoy 100% exemption from corporate and personal income taxes, import/export duties, and other commercial levies
- Full Ownership: Foreign investors can own 100% of their companies without the need for a local sponsor
- Repatriation of Profits: Investors can repatriate all profits and capital without restrictions
- Affordable Setup Costs: Packages start as low as AED 11,000 for licenses with visa options
- Flexible Leasing Options: Long-term leases with renewable terms are available for industrial land (up to 25 years). Pre-built warehouses and executive offices are also offered

Large land bank: This free zone is more suitable for companies planning to set up extensive manufacturing facilities
Licensing Options
HFZA provides various license types to cater to diverse business activities:
1. Industrial License: For manufacturing, processing, assembly, or packaging.
2. Commercial License: For import/export, distribution, storage, and trading.
3. Service License: For service-oriented businesses operating within the free zone

Specialised Zones

HFZA has dedicated sub-zones tailored to specific industries:

Oil & Gas Zone
Steel City
Maritime City
Timber Land
Perfume Land
Food Park (focused on food processing and allied industries)

Business Setup Process

Establishing a company in HFZA involves three simple steps:

Submit signed application forms with the required documents.
Make the payment.
Collect the trade license

It takes only a business day to issue licenses on most activities. One has to be present personally or by power of attorney in the process of registration.

Additional Support

HFZA offers a wide range of support services on online portal on document verification, VAT registration changes, visa applications etc. Cost-effective energy rates and availability of economical workforce are also available in the zone.

Hamriyah Free Zone presents a very attractive business environment to any company that would want to get growth opportunities in the UAE and other regions. It is a favorable state to investors in different industries due to its strategic occupancy, its well-developed infrastructure, its tax breaks as well as policies that are friendly to investors.

Company Setup Procedure in Hamriyah Free Zone Authority

The process of setting up a company in Hamriyah Free Zone Authority (HFZA) involves the following, and Alpha Equity is here to guide you through each step to ensure a smooth and successful setup.

key steps:

Select your license type and status in the law

Choose your carrying place of business

Present passports and other papers required

Make a trade license, and lease agreement

Perfect visa and immigration formalities

Types of License and Juridical Forms

HFZA offers the following options:

Free Zone Establishment (FZE): Single shareholder
Free Zone Company (FZC): Multiple shareholders (up to 5)
Branch or Subsidiary of existing company

License types include commercial, service, industrial, and e-commerce

Facility Options

Offices
Warehouses
Land plots
Virtual offices
Document Requirements

For FZE/FZC:

Passport copies of shareholders and manager
Visa copies or NOC from the current sponsor
Bank reference letter

For Branch/Subsidiary:

Parent company documents (license, incorporation certificate, etc.)
Board resolution for opening branch

Costs

License fees start from:

Commercial/Service License: AED 11,000
General Trading License: AED 12,000
E-Commerce License: AED 12,000

Additional costs include:

Registration fee: AED 9,000
Facility rental (e.g. office space)
Visa fees

The overall cost of set up will be between AED 17,300 and above AED 50,000 based on the type of license, facility and visa numbers

Key Benefits

100% foreign ownership
0% corporate tax for certain entities per federal decree law no. 47 of 2022
Tax and customs duty exemptions
No personal income tax
100% repatriation of capital and profits
Strategic location with seaport access

The setup procedure may last an average of one week only with HFZA purporting to issue the license within one hour after submission of documents.

There is a minimum Cost Estimate of AED 11,000 (USD2,995) of a basic company setup in Hamriyah Free Zone (HFZA). This established Free Zone is tax free and customs duty free.