HAMRIYAH FREE ZONE ONSHORE COMPANY

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  • Prompt, professional and personal service at all times
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A HIGHLIGHT OF HAMRIYAH FREE ZONE (ONSHORE) COMPANY

Hamriyah Free Zone Sharjah - UAEBasically, a free zone is best defined as an area within UAE that is designated for the incorporation of different entities that are supposed to observe specific rules and regulations.

Hamriyah Free Zone authority (HFZ) is strategically located in Sharjah and was established back in 12th November 1995.Sharjah boasts as being the only Emirate that has ports on the west coast and east coast of the Arabian gulf with an uninterrupted access to the Indian Ocean and an international airport that connects the free zone to 230 cities. In addition to this, the free zone has state of the art infrastructure that steers the economy to be able to serve the Gulf, regional and international markets.

HFZ is slowly becoming the heartthrob of UAE’s industrial development. This is through factors such as unique geographic and time zone advantage that is enhanced by a secure and a completely currency. The easy accessibility of the free zone through land, air and sea has also had a great impact on the development of the free zone’s economy.

LICENSE TYPES

Industrial: allows its holder to import raw materials, undertake manufacturing processes and export the end product.

Commercial: permits its holder to import, export, consolidate, distribute, store or offer warehousing facilities for items that are specified in the licenses. The license is limited in that only a maximum of three product lines are catered for in the license.

General trading: licenses are similar to the commercial license only that the general trading license allows unlimited product lines.

Services: holders allowed to carry out services specified in the license within the HFZ.

REGISTRATION FORMS

Free Zone Establishment (FZE): One share holder and a minimum capital requirement of AED 150,000.

Free Zone Company (FZCO): More than one shareholders and a minimum capital requirement of AED 150,000.

Local or Foreign Branch: No capital requirement.

 

KEY BENEFITS

  • Full foreign ownership;
  • Full capital and profits repatriation;
  • No personal or corporate tax;
  • Completely free funds transfer processes;
  • 25 years lease that is extendable by another 25 years;
  • Readily available and affordable energy;
  • Affordable property leases;
  • Easy access to ports in the Indian Ocean and the Arabian Gulf;
  • Latest infrastructure that includes a well developed telecommunication link;
  • Easy and fast handling of goods (imports) at the ports;
  • Confidentiality as no public record.
 

HFZ TAXES

Incorporating a company in a free zone presents great advantages such as exemption from tax.HFZ has full tax exemption on personal and corporate tax. This implies that individuals and companies operating in the free zone are exempted from making any tax payments. This goes a long way in attracting potential investors in the free zone.

 

HAMRIYAH FREE ZONE COMPANY CORPORATE AND LEGAL FEATURES

COMPANY NAME

Three preferred company names need to be forwarded to the authority for approval. The authority tries all in its power to retain the first choice.

SHAREHOLDER

At least one shareholder who cans either is an individual or corporate.

DIRECTOR

At least one director/MANAGER and only individuals allowed.

SHARE CAPITAL

A minimum share capital of AED 150,000. Share capital to be deposited in the company’s bank account. This should be done before a trading license is issued after which the money can be withdrawn.

OFFICES

Companies required to rent a facility and proof of this renting should be forwarded to Hamriyah Free Zone Authority.

TRADE LICENSE

Licenses are only valid for one year after which the renewal should be done either before the expiry materializes or within 30 days from the expiration date.

AUDIT

It is required that companies should conduct an annual financial audit and submit the audit to the authority. Generally, the reporting period is one year but companies are free to choose their own reporting date as if more than 6 months and less than 18 months.

 

VISA APPLICATIONS

The total number of licenses that a company is eligible to apply for is dependent on the office size taken by the company. On average, one visa per 10 square meters is the criterion used and this is assessed on a case by case basis by the authority. Criteria for the issuance of the visas are dependent on the business activities being carried out by the business. Visa issuance takes about 4-7 working days and is subject to the immigration department’s approval.

 

IMPORTANT INFORMATION

  • If you trade in UAE through a free zone company, there are only two options available to use. The first one, you can directly trade with an LLC company that holds an import/exports license. The second one, you can enter into an agreement with a logistics company that will in turn clear the goods and deliver them up to the mainland.
  • For service provision companies that wish to provide services to a company that is not within the free zone, the general rule provides that all services are to be provided within the free zone.
  • Holders of Free Zone licenses are permitted to import goods and equipments into the free zone without having to pay custom duties. Custom duty only applies when the goods are moved out of the free zone. There are unique warehousing facilities that are at the disposal of companies that intend to re-export the goods. In such a situation, a refundable fee deposit that is equal to the custom duty of the goods. Once the goods are re-exported, the deposit is refunded.
  • The Customs duty of goods is calculated at 5% of the CIF value of the goods. Liquor and Alcoholic products imports have their customs calculated at 50% of their CIF value while that of tobacco product imports is held at 100% of the CIF value. Products like pharmaceuticals and foodstuffs are duty free and thus no custom duty charged.
  • Documents required by custom authorities are goods declaration, certificate of origin, invoice copies and bill of lading among other documents. However, custom rules and laws change from time to time and it is thus advisable to refer to www.dubaicustoms.gov.ae for all customs information.