LET US SHOW YOU THE WAY ... TO THE TOP
Basically, 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.
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.
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.
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.
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.
At least one shareholder who cans either is an individual or corporate.
At least one director/MANAGER and only individuals allowed.
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.
Companies required to rent a facility and proof of this renting should be forwarded to Hamriyah Free Zone Authority.
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.
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.
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.