04 Feb Establishing a company in the Sharjah Free Zone
Sharjah, one of the seven emirates that make up the United Arab Emirates, is a growing economic center that provides an attractive environment for investment. Among its most prominent economic features is the presence of free zones that represent strategic locations for companies and businesses. Establishing a company in the Sharjah Free Zone provides many benefits that make it an ideal choice for investors and entrepreneurs from different parts of the world.
In this article, we will review in detail the benefits associated with establishing a company in the Sharjah Free Zone, the steps necessary to achieve this, in addition to the expected costs. Whether you are thinking about starting your own new venture or expanding your existing business, this guide will help you make an informed decision and make the most of the opportunities available in this vital region.
Establishing a company in the Sharjah Free Zone
Benefits of establishing a company in the Sharjah Free Zone
The Sharjah Free Zone is considered one of the best options for establishing companies in the Sharjah Free Zone, because it provides business owners with many attractive advantages. In this section we will review some of the key benefits of establishing a company in this region.
- Tax exemptions
One of the most important benefits provided by the Sharjah Free Zone is tax exemptions. Companies established in this zone enjoy full income and corporate tax exemption for up to 50 years, with the possibility of extension. In addition, there are no taxes on the personal profits of business owners, making it an ideal environment for businesses wanting to maximize profitability without incurring significant tax burdens.
- Advanced infrastructure
The Sharjah Free Zone is characterized by an advanced infrastructure that greatly facilitates business operations. This infrastructure includes modern logistics centres, advanced warehousing facilities, nearby seaports and airports, as well as an excellent road network. These factors ensure that transportation and distribution operations are efficient and rapid, which enhances companies’ ability to meet the needs of their customers efficiently.
- Easy access to global markets
Sharjah is a strategic location that allows companies easy access to regional and global markets. The free zone is located near Khalid Port and Sharjah International Airport, providing companies with quick access to global markets via air and sea transportation. This strategic geographical location makes Sharjah an ideal gateway for international trade, and helps companies expand their operations and reach a larger customer base.
In short, establishing a company in Sharjah Free Zone offers great business opportunities thanks to tax exemptions, advanced infrastructure, and easy access to global markets. These advantages make the free zone an attractive choice for anyone who wants to start or expand his business in a supportive and growth-stimulating environment.
Steps to establish a company in the Sharjah Free Zone
Establishing a company in Sharjah in the free zone requires following a set of organized steps to ensure that the process runs smoothly in accordance with applicable laws and regulations. Below we review the basic steps for establishing a company in the Sharjah Free Zone:
- Choose the company type
The first step in establishing a company is to choose the type of company that suits your business goals and needs. There are several types of companies that can be established in the Sharjah Free Zone, such as limited liability companies (LLC), subsidiaries, or even branches of foreign companies. Choosing the appropriate type of company depends on the size of the investment, the number of partners, and the nature of the business activity to be practiced.
- Submit the required documents
- After choosing the company type, you must submit a set of documents required to establish the company. These documents include:
- Completed and signed incorporation application form.
- A copy of the partners’ passport.
- Personal photos of partners.
- A detailed business plan explaining the nature of the business activity.
- Proof of address and articles of association of the company.
- In the case of branches of foreign companies, a copy of the original trade license of the parent company must be submitted.
- Obtaining a license
Once all required documents are submitted, they are reviewed by the Free Zone Authority. If the application is approved, a commercial license is issued allowing the company to conduct its business in the free zone. It is important here to follow all legal requirements and adhere to rules and regulations to ensure obtaining the license smoothly and quickly.
The process of obtaining a license also includes paying fees related to issuing the license and registering the company. These fees vary based on the type of company and the size of the business.
By following these steps, entrepreneurs can easily establish a company in the free zone and begin practicing their business activities in an environment that is appropriate and supportive of growth and prosperity.
Costs associated with setting up a company in Sharjah Free Zone
When making the decision to establish a company in the Sharjah Free Zone, it is essential to understand the costs associated with this process to ensure sound financial planning. Costs vary between licensing fees, rental costs, and administrative fees, and are as follows:
- License fees
Licensing fees are one of the first costs to consider when establishing a company in a free zone. These fees vary based on the type of business and the size of the company. For example, SMEs may pay lower fees compared to larger companies. Licensing typically includes work permits and business permits, and must be renewed annually to ensure operations continue legally.
- Rental costs
Rental costs are an important factor that affects a company’s budget. Sharjah Free Zone offers a variety of real estate options such as offices, warehouses, and industrial lands. Rental costs vary based on location, space, and available amenities. It is important to choose the property that meets your company’s needs at the best possible cost to ensure maximum financial efficiency.
- Administrative fees
In addition to licensing fees and rental costs, there are a range of administrative fees that accompany the company formation process. These fees include registration costs, document submission fees, and legal consulting services. Some free zones may also charge additional fees for services such as courier, translation, and notarization. Therefore, it is essential to review all expected administrative fees to ensure there are no unexpected expenses.
In conclusion, achieving a full understanding of the costs associated with setting up a company in a free zone can help business owners make sound financial planning and make informed decisions. By considering licensing fees, rental costs, and administrative fees, entrepreneurs can set an appropriate budget and ensure the success of their future ventures.
In conclusion, establishing a company in the free zone is an important strategic option for companies aspiring to expand and grow in a dynamic and stimulating business environment. The free zone offers a range of attractive benefits such as tax exemptions, advanced infrastructure and easy access to global markets, making it an ideal destination for investors and entrepreneurs.
By following the specific steps for establishing a company, such as choosing the appropriate company type, submitting the required documents, and obtaining a license, investors can start their business quickly and effectively. Although there are costs associated with starting a company such as licensing fees, rental costs, and administrative fees, the potential returns and investment opportunities make these costs a worthwhile and profitable investment in the long term.
A good understanding of the procedures, costs and benefits associated with setting up a company in a free zone can help investors make informed decisions and achieve sustainable success in a competitive business market. Therefore, we advise everyone who is thinking about entering this promising market to take advantage of all available opportunities to achieve maximum success and prosperity.
The most important frequently asked questions about establishing a company in the free zone
What types of companies can be established in the Sharjah Free Zone?
Common types include: limited liability companies (LLC), joint stock companies, branches, and sole proprietorships. There are various options depending on business activity and specialty.
What are the main advantages of establishing a company in Sharjah Free Zone?
Among the advantages: tax exemptions, full ownership by foreigners, ease of establishment procedures, a strategic location, advanced infrastructure, and facilities for transferring profits.
What are the costs associated with setting up a company in Sharjah Free Zone?
Costs include registration and licensing fees, rental fees, documentation costs, and sometimes legal consulting costs. Costs depend on the type of company and business activity.
What are the conditions for obtaining work visas in the Sharjah Free Zone?
To obtain work visas, you must submit an application to the Free Zone Authority, provide required documents such as an employment contract and passport, and ensure compliance with work requirements.
Is it possible to modify the company’s activity after incorporation?
Yes, the company’s activity can be modified after incorporation, but this requires submitting an application to amend the commercial license and update the relevant documents.