Hamriyah Free Zone (HFZ)

Hamriyah Free Zone (HFZ)

Established in 1995 by an Emiri Decree, Hamriyah Free Zone (HFZ) fosters entrepreneurship and economic development. HFZ provides business solutions for international and local investors, offering access to a lucrative market of approximately 1.5 billion consumers within the MENA region. Benefits include total business ownership, repatriation of capital and profits, no taxes or duties, a one-stop-shop concept for quick license issuance, and viable visa solutions for business owners and their employees.

Whether it’s a multinational expanding operations or a budding entrepreneur with big dreams, HFZ offers a range of services and facilities for every need and budget. HFZ has more than 22 million square meters of prime industrial and commercial land and a 14-meter deep-water port, accommodating long-term leases of land, pre-built warehouses, factories, and executive office suites. Over 60,000 people across 5,000 companies from 136 nations have already chosen HFZ.

Location

Hamriyah Free Zone is located in Sharjah, the only one of the seven emirates with ports on both the Arabian Gulf’s west and east coasts, providing direct access to the Indian Ocean. Sharjah’s extensive transportation links connect to the Gulf states, the Indian subcontinent, and emerging markets in Asia and Africa through its three modern seaports and international airport.

Business Incentives

• 100% Tax-Free Environment: No taxes or duties applied.
• 100% Repatriation of Capital and Profits: Investors can fully repatriate capital and profits.
• 100% Company Ownership: Complete ownership of businesses.
• 100% Exemption from Commercial Levies: No commercial levies are imposed.

Additional Advantages

• Pre-built Warehouses and Office Units: Available for long-term lease.
• 14-meter Deep-Water Port: Includes a 7-meter deep inner harbor adjacent to it.
• Executive Office Suites: Exclusively designed.
• Long-term Land Leases: 25 years renewable for a similar period.
• On-site Accommodation: Available for investor personnel.
• Affordable Cost of Living: Cost-effective living conditions.
• Developed Infrastructure: Highly developed infrastructure and telecommunications links.
• Inexpensive Energy: Abundant and cost-effective energy supply.
• Flexible Personnel Recruitment: Liberty to recruit an economical workforce.

Types of Licenses

• Industrial License: Allows importing raw materials for industrial purposes. Finished products can be exported outside the UAE, but selling within the UAE market requires a local distributor or agent.
• Commercial License: Permits importing, exporting, selling, distributing, and storing specified items. Selling imported goods in the UAE requires a local distributor or agent and incurs customs duty (currently at 5%).
• Service License: Enables conducting specified services within HFZ, generally for consultancy, accounting, legal, and domestic services.

Land for Lease

• Industrial Plots: Ranging in size from 2,500 sq. m. and upwards in multiples of 2,500 sq. m. Up to 60% of these plots can be developed to meet investors’ requirements.
• Annual Land Rate: Starting from Dhs 25 per sq. m.

Hamriyah SME Zone

The Hamriyah SME Zone supports small and medium-sized enterprises (SMEs) with seven strategic clusters: Oil & Gas Zone, Petrochemical Zone, Maritime City, Steel City, Construction World, Timber Land, and Perfume Land. Each land plot in the SME Zone is 5,000 sq. m.

Hamriyah MB Zone

Designed for micro business owners, the Hamriyah MB Zone offers practical business solutions for various sectors. Plots are leveled, compacted, and fenced, each measuring 2,500 sq. m.

Land Leasing Terms

The minimum lease term is five years, with an option to lease for 25 years, renewable for another 25 years. Lease rates are typically fixed for the first five years, with a rent review at the end of this period.

E-offices

The Hamriyah E-office package is designed for SMEs, including license fees, company incorporation charges, and 9 sq. m. office rent. The package costs Dhs 25,000 for a Commercial or Service License and Dhs 35,000 for a General Trading License. The number of visas per office depends on the license type: four visas for Commercial or Service License and five visas for General Trading License.

Offices Lease Terms

The minimum lease term is one year, renewable, with a one-month notice period required for termination. Full rental charges are payable annually in advance. Rent for executive offices includes utility charges (water, electricity, and air conditioning), daily housekeeping, and free car parks.

Staff Accommodation

Staff accommodation is available for investor employees, providing comfortable, brand new facilities within minutes from the warehouses and office blocks. Only HFZ staff accommodation facilities can house technical and non-technical staff, and no business facilities, including those constructed by the investor, may be used for accommodation or cooking purposes.

Utilities

Utilities for leased plots of land, warehouses, factories, and standard office units are charged to the investor based on consumption. However, executive offices and E-offices include electricity, water, and air conditioning in the annual office rent. Electricity costs range from Dhs 0.30 – Dhs 0.40 per KWA, and water costs Dhs 30 per 1,000 gallons.

Banking Facilities

Hamriyah Free Zone offers banking and money-changing facilities. International and local banks, including Standard Chartered Bank, Sharjah Islamic Bank, Dubai Islamic Bank, Abu Dhabi Islamic Bank, and Bank of Baroda, are present in HFZ. To open a bank account in the UAE, the following documents are required:

1. Introductory letter by the Hamriyah Free Zone Authority.
2. Copy of the Hamriyah Free Zone license.
3. Copy of the Sharjah Chamber of Commerce registration certificate.
4. Power of Attorney of the authorized signatory for bank operations.
5. Company registration certificates.

For opening a bank account, a bank may request the legalization of documents, including attestation by the UAE Embassy in the parent country and the Ministry of Foreign Affairs in the UAE.

License Application and Business Establishment in HFZ

Types of Business Presence:

• Branch of a UAE company
• Branch of an International company
• Single Shareholder Free Zone Establishment (FZE)
• Multi-shareholder Free Zone Company (FZC)

Important Aspects of FZEs and FZCs:

• An FZE/FZC is a limited liability entity.
• Both natural persons and companies can incorporate FZEs/FZCs in HFZ.
• The registration charge is Dhs 9,000.
• FZEs/FZCs require a free zone trade license after incorporation or registration.
• An FZE can have only one shareholder. A FZC must have a minimum of 2 shareholders and can have up to 5 shareholders.
• FZE shares shall be in multiples of Dhs 150,000 (for office-based projects, this can be reduced to the initial set-up cost). FZC shares shall be in multiples of Dhs 1,000.
• No shares may be transferred without prior written approval from HFZ.
• The financial year runs from January to December, except the first year, which starts from the date of incorporation.

Minimum Legal Requirements:

• FZEs and FZCs should abide by the Implementing Rules and Regulations. For FZEs, these are equivalent to their Memorandum and Articles of Association, whereas for FZCs, they are equivalent to their Articles of Association.
• FZEs and FZCs must submit their audited financial statements to Hamriyah Free Zone Authority every year within three months from the end of the financial year.
• If a foreign national is to be appointed as a Director or Manager, HFZA requires valid residence and work permits from the relevant authorities.
• The offices of Director and Secretary may be held jointly by a single person.

Conclusion

Hamriyah Free Zone offers a comprehensive range of business solutions and facilities, making it an attractive option for investors looking to establish a presence in the MENA region. With its strategic location, extensive incentives, and robust infrastructure, HFZ continues to support the growth and development of businesses from around the world.

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