Establishing a company in Sharjah Free Zone is an important strategic step for any investor seeking to expand their business in a flexible and supportive business environment. Sharjah Free Zone is one of the most prominent free zones in the UAE, offering a wide range of business opportunities and facilities specifically designed to support business growth. The free zone was established to be an economic hub that attracts companies from various sectors, whether industrial, commercial, or service.

One of the notable advantages of setting up a company in the Sharjah Free Zone is the possibility of full foreign ownership, which allows foreign investors to have complete control over their companies without the need for a local partner. In addition, the free zone offers attractive tax exemptions including full exemption from income and profit taxes, which contributes to increased profitability and higher investment returns.

Sharjah Free Zone is strategically located near Sharjah’s major ports and international airports, facilitating import and export operations and enhancing the efficiency of logistics services. This feature makes the free zone a preferred destination for companies that rely on international trade in their activities. In addition, the free zone features an advanced infrastructure that includes equipped offices and industrial facilities, in addition to providing comprehensive support services that include legal and commercial consultations, and visa facilitation.

The Sharjah Free Zone also offers flexibility in choosing the type of commercial license and economic activity, allowing investors to choose the field that best suits their goals and ambitions. This flexibility, along with the simplified procedures for establishing companies, makes the free zone an ideal environment for start-ups and companies seeking rapid growth.

Given these advantages, establishing a company in the Sharjah Free Zone is a golden opportunity for investors looking to benefit from the thriving UAE market and benefit from a strategic location that supports their expansion in the Middle East and North Africa markets.

 

Benefits of establishing a company in the Sharjah Free Zone

Establishing a company in a Sharjah free zone comes with many perks and benefits that attract investors. Here are some of the common perks that companies can avail when establishing in a Sharjah free zone:

• Assured Foreign Investment: Providing opportunities for foreign direct investment with the possibility of the company continuing to have 100% ownership of the capital.
• Tax Exemptions: Obtain tax exemptions for a specified period on income and profits generated from commercial activities within the free zone.
• Simplified establishment procedures: Easy and simplified establishment procedures that help speed up the company establishment process.
• Facilitation of permits and licenses: Providing facilities for obtaining the permits and licenses necessary to start work in the free zone.
• No local sponsorship required: No local partner or sponsorship required to establish the company.
• Easy access to the local and regional market: Providing a local and regional business environment that helps expand the scope of work and reach different markets.
• Ease of transfer of profits and capital: Ease of transferring profits and capital outside the country without restrictions.
• Advanced Infrastructure: Providing a modern and advanced infrastructure that helps facilitate companies’ operations.

Documents required to establish a company in the free zone 

To set up a company in a free zone in the UAE, the process requires the submission of a set of basic documents. Although these requirements may vary slightly from one free zone to another, there are some common documents that are often required:

1. Company Establishment Application Form: The establishment application form of the relevant free zone must be completed and submitted.
2. Copies of Passports: Provide copies of valid passports of all shareholders and directors.
3. Personal Photograph: Provide recent personal photographs of both shareholders and directors.
4. Business Plan: Some free zones may require the submission of a business plan that outlines the nature of the business, objectives, and future plans of the company.
5. Proof of Address: Provide proof of the shareholder’s residential address, such as a utility bill or bank statement.
6. Initial Approval: Sometimes, the free zone may require initial approval from the relevant authorities based on the type of business activity.
7. Articles of Association and Memorandum of Association: Preparing and submitting the company’s articles of association and memorandum of association, which define the rights and obligations of shareholders and directors.
8. Bank Reference: Submit a reference letter from the bank proving the good financial standing of the shareholders.
9. Establishment fees: Pay the fees required to establish the company and obtain the license.
10. Director’s authorization: Submitting a resolution from the shareholders appointing the director responsible for the company, if the director is not a shareholder.
11. Office Lease Agreement: Submit a lease agreement for offices or warehouses within the free zone, if required.
12. Trade Name Register: Submit an application to reserve the company’s trade name, which must comply with the free zone laws.

Procedures required to establish a company in the free zone

Establishing a company in a free zone requires following specific procedures that vary from one free zone to another, but here are general steps that may be necessary to establish a company in any free zone:

1. Market Study and Research: Before starting a company, a comprehensive market study must be conducted to understand the market needs, competition, and available opportunities.
2. Selecting the company’s activity: Determine the company’s activity carefully and ensure that it complies with the laws and regulations of the free zone.
3. Choose the type of company: Decide on the appropriate type of company, such as a sole proprietorship, a joint stock company, or a limited liability company.
4. Choosing a company name: Choose a unique and appropriate name for the company, and make sure that it does not conflict with the names of other companies in the area.
5. Submitting the application: Submit the company establishment application to the relevant authority in the free zone, along with all required documents.
6. Signing contracts and documents: After the application is approved, the necessary contracts must be signed and the establishment fees must be paid.
7. Company Registration: Once the contracts are signed and the fees are paid, the company will be officially registered and a certificate of incorporation will be issued.
8. Obtaining licenses and permits: Obtain all licenses and permits necessary to start operating in the free zone.
9. Open a bank account: Open a bank account for the company and deposit the required capital.
10. Compliance with local controls: Ensure compliance with all local controls and regulations in the free zone.

Types of licenses in Sharjah Free Zone

Sharjah Free Zone offers a variety of licenses to meet the needs of different businesses and sectors. Here are some of the types of licenses available:

• Trade License: Allows general commercial activities such as import, export and sale of products and goods.
• Industrial License: Allows companies to establish and manage industrial and manufacturing facilities within the free zone.
• Services License: Allows the provision of various services such as consulting, IT services, and other professional services.
• E-commerce License: For companies that run e-commerce businesses, such as selling products and services online.
• Education License: Enables educational or training institutions to offer educational and training programmes within the free zone.
• Media License: For companies operating in media fields such as journalism, broadcasting, publishing, and media production.
• Health and Care License: Allows companies providing health and care services such as hospitals, clinics and healthcare centers to operate within the free zone.
• Logistics License: For companies that provide transportation, warehousing and other logistics services.
• Import and Export License: Allows companies to import and export products and materials within and outside the UAE.
• Real Estate Development License: Enables companies to develop and manage real estate projects within the free zone.

In conclusion, establishing a company in the Sharjah Free Zone is an important strategic step for any investor looking for a supportive and distinguished environment for the growth of their business. The Sharjah Free Zone offers a range of advantages that make it a preferred destination for companies of all sizes and sectors. Among these advantages are the freedom of 100% ownership for foreign investors, the tax exemptions it provides, in addition to the ease and speed of the establishment procedures.

Sharjah is one of the most dynamic emirates in the UAE, combining a rich cultural heritage with rapid economic development. Setting up a company in the Sharjah Free Zone gives companies access to advanced infrastructure and logistics services, facilitating daily business operations and enhancing companies’ ability to expand into regional and international markets.

Sharjah’s strategic location, close to major seaports and airports, provides businesses with a significant logistical advantage, facilitating import and export operations and opening wide doors to global trade. In addition, the Sharjah government greatly supports investors by providing a flexible regulatory environment and favorable legislation that contribute to creating an attractive and sustainable investment climate.

Therefore, establishing a company in the Sharjah Free Zone is not only a financial investment, but also an investment in the future of the business. With modern infrastructure, tax exemptions, and continuous government support, companies can achieve great success and achieve their goals in a business environment that encourages innovation and growth. Making the decision to establish your company in the Sharjah Free Zone can be the beginning of a successful and sustainable path in one of the fastest growing economies in the region.

The most important frequently asked questions about establishing a company in the Sharjah Free Zone