START BUSINESS IN UAE FREE ZONES
Hamriyah Free Zone
Overview of Hamriyah Free Zone
Hamriyah Free Zone is governed by the Emirate of Sharjah and is the second largest Free Zone of UAE after JAFZA. It was founded in 1987 and is rapidly growing, expanding its size and number of companies.
Some large national and international companies have their representative offices in Hamriyah.
Wide range of offices, warehouses and lands
Al Hamriyah free zone is one of a few zones that enjoy their own 14 meter deep sea port, 7 meter deep inner harbour, huge territory of 26 mln sq meters, warehouses and office facilities.
The zone is a preferred location of many industrial companies due to low rates for electricity and rent.
Hamriyahhas all the additional facilities to help your business operate: own customs office, logistics companies, storage solutions, banks, medical fitness center and Emirates Identity Authority.
License activities
Hamriyah free zone authority has recently amended and improved its activities list by adding many highly demanded activities such as:
- Insurance consultancies
- Fashion designing
- Sport research and consultancies
- Science and technology consultancy
- Investment of own resources and others
It is also offering a Marine service license, vessels, freight broker, which allows full operations in the sea port. Not every business setup company in Dubai can find such activities in other free zones.
The activities are grouped in a usual way as in any other free zone:
- Commercial
- Service
- Industrial
Even the most basic license allows you to have up to 3 business activities without additional fees.
If you are specialized in a business related to IT, you might need to be located in Dubai and one of the most cost-efficient options in this case would be DTEC zone in SIlicon Oasis.
Hamriyah free zone license costs
Hamriyah free zone company registration starts from 11,000 AED as license fee. It has a provision to apply for 1 resident visa. On top of that you need to rent a P.O. box for about 1,000 AED per year.
Warehousing prices start from 85,000 AED for 300 sq meters. The fee can be paid by installments.
The cheapest fees in Hamriyah include (AED):
| Type of licence | Cost, AED |
|---|---|
| 1 visa package | 11,000 |
| 7 visas package | 35,000 |
| Office 15 sq meters | 17,000 |
| Warehouse 307 sq meters | 85,000 |
Hamriyah free zone company setup
Hamriyah free zone setup can be conducted in 1 working day. Warehousing registration will take a bit longer, because you need to provide a business plan for approval.
For some activities it’s required to get a third party approval, for example Ministry of Health approval for Medical goods trading. It will also take additional time.
The documents you need for company registration are:
- Passport copy
- Passport size photo
- Copy of previous entry stamp to UAE
- Business plan only for certain activities
- No Objection Letter (NOC) in case your visa is issued by another company/sponsor
The documents you get after company registration are electronic. Only Memorandum and Lease agreement will be handed over to you as hard copies.
Hamriyah free zone visa
Hamriyah is flexible in terms of the visas you can open a company eligible from 1 up to 7 visas. It beats many other ways to get UAE residence visa due to high visa numbers without executive office rent.
Warehouse facility allows you to open up to 50 visas.
The visa of investor or partner is eligible for 3 years, visa of employee 2 years.
Hamriyah free zone visa costs in AED:
| Visa fee including medical check-up and Emirates ID, AED | |
|---|---|
| Investor | 3,345 |
| Employee | 3,140 + refundable deposit of 1 month salary and 1 way ticket equivalent |
Visa fee including medical check-up and Emirates ID Investor 3,345 Employee 3,140 + refundable deposit of 1 month salary and 1 way ticket equivalent
Medical check and Emirates ID applications have to be conducted in the free zone itself. Emirates ID will be received after about 2 weeks from the day of visa stamping. It will be delivered to Emirates Post office on the territory of the free zone.
License renewal
Any company in Al Hamriyah free zone must be renewed on a yearly basis. There is a government requirement to provide audit report at the time of renewal. You need to start auditing after the 2-nd year of operations.
There is an option to sign a waiver off letter and pay a fee of 1000 AED if you cannot submit the audit report.
By the way, renewal can be done without personal presence of the shareholder.
Company Amendments
Company amendments usually can be applied by the business owner or a person holding a Power of Attorney.
Usual amendments of the company include:
- Change of corporate name
- Change of activity
- Shares transfer
- Change of Director/Manager
Business liquidation
Hamriyah free zone UAE company liquidation in a step-by-step process:
- Visas liquidation
- Immigration (establishment) card cancellation
- Lease cancellation if you had any
- Customs clearance for commercial licenses
- License deregistration
Time-frame of the liquidation depends on the facility you are renting. Flexi-offices take 1 day. If you have a warehouse you need to submit a 3 months notice, for plot of land 6 months notice.
The cost of the liquidation is 5,999 AED for the licence.
The deposits you paid under the visas and office or warehouse facilities will be returned once the company is closed.
Dubai business setup consultants opinion
Hamriyah becomes a more customer friendly zone, suitable for a small business or a large company. If you need an office or a warehouse for a reasonable price and do not mind a remote location, Al Hamriyah free zone Sharjah can be your option.
If you want to find a low cost free zone in Dubai for your company registration, you may be interested in DTEC. It is a subsidiary zone of Dubai Silicon Oasis and offers IT related service activities for good prices.
BENEFITS OF HAMRIYAH FREE ZONE COMPANY
- Big warehouses and plots of land are always available
- Own sea port inside of the Free Zone
- One day setup is possible
- 10 sq meters office comes with most packages
- Up to 7 visas without executive office
- 3-5 business activities per license
START YOUR BUSINESS IN HAMRIYAH FZ TODAY
TRADING AND SERVICE LICENSE COSTS IN HAMRIYAH FREE ZONE
Up 6 VISAS COMPANY
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| Trading / Services license | no visa | AED 17,300 $4,750 | download breakdown |
| Trading / Services license | 1 visa | AED 28,717 $7,900 | download breakdown |
| Trading / Services license + 10 sqm office | 2 visas | AED 40,820 $11,200 | download breakdown |
| Trading / Services license + 10 sqm office | 3 visas | AED 46,922 $12,900 | download breakdown |
| Trading / Services license + 10 sqm office | 4 visas | AED 53,025 $14,550 | download breakdown |
| Trading / Services license + 10 sqm office | 5 visas | AED 67,127 $18,400 | download breakdown |
| Trading / Services license + 10 sqm office | 6 visas | AED 73,230 $20,100 | download breakdown |
GENERAL TRADING LICENSE COSTS IN HAMRIYAH FREE ZONE
UP TO 7 VISAS COMPANY
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| General trading license + 10 sqm office | no visa | AED 41,300 $11,350 | download breakdown |
| General trading license + 10 sqm office | 1 visa | AED 52,717 $14,450 | download breakdown |
| General trading license + 10 sqm office | 2 visas | AED 58,820 $16,150 | download breakdown |
| General trading license + 10 sqm office | 7 visas | AED 89,333 $24,500 | download breakdown |
E-COMMERCE TRADING LICENSE COSTS IN HAMRIYAH FREE ZONE
Up 6 VISAS COMPANY
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| E-Commerce license + 10 sqm office | no visa | AED 31,300 $8,600 | download breakdown |
| E-Commerce license + 10 sqm office | 1 visa | AED 42,717 $11,750 | download breakdown |
| E-Commerce license + 10 sqm office | 2 visas | AED 48,820 $13,400 | download breakdown |
| E-Commerce license + 10 sqm office | 6 visas | AED 73,230 $20,100 | download breakdown |
DOCUMENTS FOR HAMRIYAH FREE ZONE SETUP
DOCUMENTS
PROCEDURE
INDIVIDUAL SHAREHOLDER
- - Passport
- - Passport size photo
- - NOC from sponsor for UAE visa holders
- - Description of business
- 1 day- Company name and activity approval
- 1 day- Visit to Hamriyah for company formation
- 1 day- Visit to Hamriyah for Establishment card application
- 1-3 weeks- Establishment card
- 1 week- Entry permit
- 1 day- Medical Check-Up and Emirates ID
- 3 days- Visa stamping
Before you make choice –
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Top 10 questions about Hamriyah free zone company
If l register a company in a free zone outside of Dubai, can l live and have a bank account in Dubai?
Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.
Can I open a bank account remotely?
No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.
Do banks give debit and credit cards or loans?
Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.
Can a free zone company hold its offices outside the free zone?
Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.
Why do I need a flexi desk or office?
A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.
Do we have to pay VAT if our company is registered in the Free Zone?
VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.
Should I pay any other TAX?
UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.
Why will a free zone company suit me better than an offshore or a mainland entity?
Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.
Can you guarantee opening of a bank account?
We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.
Should I renew my company? When? How much does it cost?
Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.
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