Free zones in the United Arab Emirates have become a favorite destination for investors seeking to establish a company in the Sharjah Free Zone in a favorable and stimulating business environment. Sharjah Free Zones stands out as one of the most prominent centers in this regard, as it provides advanced infrastructure and investment facilities that make it an ideal choice for emerging businesses and large companies alike.
The Sharjah Free Zones Zone is distinguished by its flexible and advanced policies that allow 100% foreign ownership of economic businesses, and comprehensive tax exemptions on income and fees, which provides an ideal investment environment. In addition, the Sharjah Free Zone offers extensive access to regional and international markets through its strategic location and connectivity to major roads and ports.
If you are thinking about starting your business in a free zone in Sharjah, this article will provide you with a comprehensive overview of the available opportunities, the procedures necessary to establish a company in the free zone , and the advantages you can achieve by choosing this promising investment destination.
What is the Sharjah Free Zone?
The Sharjah Free Zone is one of the special economic zones in the Emirate of Sharjah, which aims to attract investments and promote local and international businesses. Sharjah Free Zone is home to a variety of companies and industries, including manufacturing, logistics, technology, logistics, financial services, and more. The free zone provides a favorable investment environment with benefits such as tax exemptions, 100% foreign ownership, and simple and convenient registration procedures, making it a great attraction for companies wishing to expand their business in the MENA region. In addition, the Sharjah Free Zone includes advanced infrastructure and integrated support services, which helps facilitate effective production, distribution, export and import operations.
Basic procedures for establishing a company in the Sharjah Free Zone
Establishing a company in the Sharjah Free Zone is considered an important strategic step for investors who want to benefit from the advanced infrastructure and competitive advantages offered by the free zone. Sharjah offers an encouraging investment environment with simplified establishment procedures and facilities for new companies. Here are the basic procedures for establishing a company in the Sharjah Free Zone:
- Choosing the company type: Select the company type, such as a limited liability company, a sole proprietorship, or a branch of a foreign company.
- Submitting a registration application: Submitting a company registration application to the competent authority in the Sharjah Free Zone.
- Document preparation: Prepare and submit required documents such as a copy of the company contract, passports for shareholders and directors, and the business plan.
- Obtaining approvals: Obtaining the necessary approvals from local authorities and relevant authorities.
- Payment of fees: Pay the fees required to register the company and obtain the necessary licenses.
- Establishing a bank account: Opening a bank account in the company’s name to manage financial and commercial transactions.
- Issuance of a commercial license: Issuance of the final commercial license from the local authority in Sharjah.
- Office insurance: securing the office necessary to conduct business according to the requirements of the free zone.
- Registration with government agencies: Registration with various government agencies for taxes and social insurance as needed.
- Signing the necessary agreements: Signing the necessary agreements and contracts to start commercial activities in the free zone.
Types of companies that can be established in the free zone
In the Sharjah Free Zone, several types of companies can be established that vary according to their activity and follow local rules and regulations. Here are some common types of companies that can be established in the Sharjah Free Zone:
| Type of Company | a description |
|---|---|
| Limited Liability Company (LLC) | A company consisting of partners with limited liability, at least 51% of which must be a UAE national partner. |
| Shareholding company | A company consisting of shareholders who have limited liability. The company can be public or private. |
| Sole proprietorship | A company run by one individual, who has unlimited liability that is limited to the money invested in the company. |
| Private joint stock company | A corporation consisting of specified shareholders, usually with limited shareholder liability. |
| Public joint stock company | A company raises capital from the general public through the sale of common stock. |
| investment company | A company established to invest in certain activities such as real estate, stocks, or other assets. |
| Branch of a foreign company | A branch of a foreign company that has limited rights and obligations in the country. |
| Consolidated company | A company that combines different activities in multiple fields within the scope of one company. |
These are general examples of the types of companies that can be established in the Sharjah Free Zone. Investors should check current regulations, laws and legal variables in the emirate to ensure compliance with legal and regulatory requirements.
Expected costs of establishing a company in the Sharjah Free Zone
The costs of establishing a company in the Sharjah Free Zone may vary based on the type of company and services required. Here is a set of expected expenses that may be included in the process of establishing a company:
- Company establishment fees: Includes company registration fees and necessary permits, and these fees vary according to the type of company and the size of capital.
- License fees and annual renewals: Companies in the free zone require annual fees to maintain licenses and permits.
- Legal and accounting consulting costs: You may need consultations from lawyers and accountants to determine the company structure and comply with local laws.
- Rental fees and commercial space: If the company needs an office or commercial space, an annual rental fee must be paid.
- Costs of hiring employees and administrative matters: These include the costs of hiring employees and providing the administrative infrastructure necessary for the company’s work.
- Registration costs with government agencies: The incorporation process may require registration with various government agencies, which includes paying registration and certification fees.
- Bank account opening costs: The company must open a bank account in the emirate, which may include account opening fees and a minimum deposit limit.
- Advertising and marketing costs: To promote the company and attract customers, you may need to invest in advertising and marketing campaigns.
Investment advantages of establishing companies in the free zone
Establishing companies in the Sharjah Free Zone provides a number of investment advantages that make it a preferred destination for investors. Here are some of these advantages:
- Flexible legislation and laws: The Sharjah Free Zone provides a flexible legislative and legal environment that supports the ease of establishing and operating companies, which reduces administrative and bureaucratic complexities.
- Full Foreign Ownership: Sharjah Free Zone allows full foreign ownership of companies established in it, meaning investors can hold all of their company’s shares without the need for a local partner.
- No taxes on profits: Companies in the Sharjah Free Zone enjoy no taxes on profits for up to 50 years, which enhances the ability of companies to achieve greater financial returns.
- Advanced Infrastructure: The Sharjah Free Zone provides a modern and advanced infrastructure that includes ports, airports, roads, and communications networks, which facilitates transportation and distribution operations and helps achieve high efficiency for companies.
- Access to regional and global markets: Thanks to its distinguished geographical location, the Sharjah Free Zone is a strategic center for accessing regional and global markets, which enhances trade and commerce opportunities.
- Facilities and support services: The Sharjah Free Zone provides various facilities and support services, including legal and financial consulting, management and marketing services, which helps companies accelerate their operations and achieve success.
- Emerging local market: The UAE has an active and growing local market that supports local and foreign investments, which enhances the growth opportunities of companies in various economic sectors.
At the conclusion of this article, we can confirm that establishing a company in the Sharjah Free Zone is a favorable strategic option for those wishing to invest in the United Arab Emirates. The Sharjah Free Zone enjoys great investment advantages that encourage business growth and enhance the chances of success. The free zone guarantees its advanced infrastructure, appropriate legal framework, flexibility in commercial legislation, and also provides a suitable investment environment that supports small, medium and large companies alike.
In addition, the Sharjah Free Zone offers a range of benefits such as full foreign ownership, tax exemptions, and easy access to the regional and global market. It also provides integrated support services and facilities, including industrial and warehousing spaces, and logistics services, which contribute to improving the efficiency of operations and reducing operational costs.
The most important frequently asked questions about establishing a company in the free zone
Are there facilities for obtaining work permits?
Sharjah Free Zone provides facilities for obtaining work permits for foreign employees and managers, making it easier to set up and operate companies.
What are the logistical and infrastructural advantages available in the free zone?
The Sharjah Free Zone provides advanced infrastructure that includes sea and air ports, and advanced transportation networks, which facilitates transportation and distribution.
What are the taxes applied to companies in the Sharjah Free Zone?
Companies in the Sharjah Free Zone enjoy a long period of no taxation on profits, and there are specific time periods in which they are subject to taxation on profits.
What are the foreign contribution requirements?
Foreigners can obtain full ownership of the company in some free zones in Sharjah, while adhering to local legal and regulatory conditions.
What are the necessary procedures to renew company licenses in the Sharjah Free Zone?
Procedures include resubmitting the necessary applications and updating the required documents, in addition to paying fees related to the annual renewal of licenses and permits.
