What Types of Licenses Are Available in Hamriyah Free Zone?

In Hamriyah Free Zone, you can choose from several types of licenses to fit your business needs. A Commercial License is essential for importing, exporting, and trading goods, with options like General Trading and E-Commerce Licenses. The General Trading License allows for a wide range of products, while the E-Commerce License supports online business activities. If you're in the service sector, a Service License permits various consultancy services without local partners. Additionally, an Industrial License lets you import raw materials for production. Each license type is designed to simplify your operations and enhance business efficiency in this free zone. Exploring more details can help you decide.

Overview of Hamriyah Free Zone

Hamriyah Free Zone, established in 1995 by Emiri Decree, offers a strategic location in Sharjah, UAE, making it a hub for regional and international trade.

Covering 30 million square meters of industrial land, it provides diverse business facilities such as offices, warehouses, and industrial plots. You can benefit from 100% foreign ownership, which means you fully control your business.

The zone doesn't impose corporate tax or income tax on companies operating within its jurisdiction, enhancing your profit margins.

With a streamlined registration process, you can establish your company within just one hour after submitting your documents.

The Hamriyah Free Zone supports various sectors, including trading and industrial activities, making it an ideal choice for business licenses.

The Free Zone's infrastructure is further enhanced by its 14-meter-deep port, which supports large-scale industrial projects and simplifies logistics for businesses.

Commercial License Details

Setting up a business in the Hamriyah Free Zone requires obtaining a Commercial License, which allows you to engage in the import, export, sale, distribution, and storage of specified goods. This license includes options for General Trading Licenses, enabling you to trade an unlimited range of products, and E-Commerce Licenses, which cater to online trading of goods and services. To obtain a Commercial License, you must specify your trading activities to ensure compliance with local regulations. This step is vital for smooth operations. The initial cost for a Commercial License starts at AED 11,000, but it may vary based on additional services and requirements. This license is essential for expanding your market reach within and beyond the free zone. Additionally, acquiring a Commercial License facilitates easier banking processes, enhancing operational efficiency in financial transactions.

General Trading License

If you're looking to expand your trading potential, a General Trading License in the Hamriyah Free Zone could be the perfect fit.

This license allows you to import, export, sell, distribute, and store an unlimited range of products, making it ideal for diverse business activities.

Here are three key benefits:

1. Flexibility: Engage in multiple trading activities without restrictions on product types.
2. Market Reach: Enhance your company's market presence by operating various trading functions concurrently.
3. Streamlined Process: Acquire the general trading license easily during company registration with simplified documentation.

Being part of the Hamriyah Free Zone also means enjoying tax incentives and 100% foreign ownership, which are significant advantages for any business aiming to establish a strong foothold in the UAE market.

E-Commerce License Overview

The E-Commerce License in Hamriyah Free Zone offers significant benefits for businesses looking to operate online.

You can enjoy 100% foreign ownership, the ability to trade both locally and internationally, and tax advantages with no corporate or income taxes.

The application process is straightforward, allowing for quick setup with minimal documentation, making it an ideal choice for digital entrepreneurs.

Additionally, this license allows for the opening of a corporate bank account in Dubai, further facilitating business operations and financial management.

License Benefits and Features

E-Commerce licenses in Hamriyah Free Zone offer multiple benefits that can significantly enhance your business operations. With this license, you can enjoy:

1. 100% foreign ownership – This means you can fully own your business without local partners.
2. Flexibility in online sales – You can operate without a physical storefront, reaching a global customer base easily.
3. Extensive logistical support – Take advantage of port facilities, customs services, and secure payment gateways.

Additionally, the E-Commerce License allows you to establish a strong digital presence. This helps you leverage online marketing strategies and improve customer engagement.

Furthermore, businesses benefit from zero percent tax rates in free zones, which includes exemptions from corporation and personal taxes, enhancing profitability and financial flexibility.

Application Process Overview

Navigating the application process for an E-Commerce License in Hamriyah Free Zone can be straightforward, especially when you're prepared.

To start, gather the necessary documentation such as your passport and a detailed business plan. This license allows you to conduct online operations and trade a wide range of products, making it ideal for expanding your market presence.

The application process is streamlined, ensuring you can establish your online business quickly. However, compliance with local regulations is crucial.

Any mistakes in licensing can hinder your banking operations and overall business functionality. Make sure you understand the requirements to avoid delays and ensure a smooth application process for your E-Commerce License.

Service License Explained

The Service License in Hamriyah Free Zone allows you to offer various consultancy services without needing a local partner.

To obtain this license, you'll need to submit specific documents like a business plan and proof of qualifications.

This license is crucial for businesses looking to operate in service sectors such as IT, marketing, and professional consultancy.

License Scope Overview

What makes a Service License in Hamriyah Free Zone essential for businesses focused on non-trading activities? This license enables you to provide services or consultancy based on your contract terms.

It's crucial for companies that specialize in professional consulting, management services, and technical support. Remember, a Service License doesn't allow for trading in goods.

Here are some key aspects to consider:

1. It strictly limits operations to service-related activities.
2. You'll need to submit relevant documentation, including a business plan and a No Objection Certificate if applicable.
3. The license must be renewed annually to comply with Hamriyah Free Zone regulations.

With a Service License, your business can thrive in a supportive environment focused on service excellence.

Application Requirements Details

Applying for a Service License in Hamriyah Free Zone requires attention to specific documentation and details.

You'll need to submit a passport copy, a passport-size photo, and a detailed business plan outlining the services you intend to offer. If you're already under another visa sponsorship, a No Objection Certificate (NOC) from your current sponsor is necessary.

The cost for obtaining a Service License starts at AED 11,000, covering basic registration fees and processing costs.

Once you secure this license, you can apply for up to seven visas, allowing for workforce expansion without needing an executive office.

Meeting these application requirements ensures you can successfully operate your business in Hamriyah Free Zone.

Industrial License Features

For businesses looking to establish a manufacturing presence in Hamriyah Free Zone, an Industrial License offers essential benefits that streamline operations.

This license type supports your manufacturing activities by allowing you to:

1. Import raw materials without restrictions, enabling efficient production processes.
2. Enjoy 100% foreign ownership, so you don't need a local partner to operate your business.
3. Access various infrastructure and support services, including logistics and warehousing tailored for your needs.

With an Industrial License, you can also benefit from low operational costs and a favorable regulatory environment.

This makes the Hamriyah Free Zone an attractive option for those wanting to set up a manufacturing facility and thrive in a competitive market.

Legal Status Options

In Hamriyah Free Zone, you have two main legal status options: FZE and FZC.

The FZE is for single ownership, while the FZC allows for multiple shareholders.

You can also set up a branch or subsidiary of a local or foreign company, giving you flexibility in how you operate.

FZE vs. FZC

When choosing between an FZE (Free Zone Establishment) and an FZC (Free Zone Company), understanding their distinct legal statuses is essential for your business strategy.

Here's a breakdown of the key differences:

1. Ownership: An FZE is owned by a single entity, while an FZC requires multiple shareholders.
2. Liability: Both structures offer limited liability, protecting your personal assets from business debts.
3. Legal Status: An FZE functions as a distinct legal entity but is simpler compared to an FZC.

Both options allow for 100% foreign ownership in the Hamriyah Free Zone, eliminating the need for a local partner.

Your choice between an FZE and FZC will impact your operations, liability, and compliance, making it crucial to select the right structure for your needs.

Branch/Subsidiary Structure

After deciding between an FZE and an FZC, you might consider establishing a branch or subsidiary in the Hamriyah Free Zone. A branch operates as an extension of the parent company and can be fully owned by it, while a subsidiary can have multiple shareholders, offering flexibility in ownership.

Both structures maintain their distinct legal identity, allowing for independent financial liabilities separate from the parent company. Establishing a branch or subsidiary requires specific documentation, including the parent company's license, incorporation certificate, and board resolution.

Choosing between these options impacts your operational scope, liability, and compliance with local regulations. Make sure to evaluate these factors carefully to determine which structure best suits your business needs.

Free Zone Establishment (FZE)

A Free Zone Establishment (FZE) offers a unique opportunity for entrepreneurs looking to set up a business in the Hamriyah Free Zone. This legal entity is wholly owned by a single individual or corporate entity and provides limited liability protection.

Here are some key features of an FZE:

1. 100% foreign ownership: You can fully own your business without needing a local partner.
2. Financial obligations: An FZE has independent financial status, meaning you're only responsible for its financial obligations.
3. Business license: You can apply for a business license to engage in various commercial, industrial, or service activities.

With a minimum capital requirement, usually AED 100,000, establishing an FZE is accessible and beneficial for investors.

Free Zone Company (FZC)

Operating as a Free Zone Company (FZC) in Hamriyah Free Zone offers entrepreneurs the advantage of shared ownership, fostering collaboration among multiple shareholders. An FZC provides limited liability, meaning you're only responsible for the company's debts up to your investment amount. This structure allows for flexibility in business operations, making it easier to pursue various activities compared to individual ownership. As a distinct legal entity, an FZC simplifies compliance with local regulations and enhances your credibility with banks and clients. To establish an FZC, you'll need specific documentation, including shareholder passports and a Memorandum of Association.

Branch and Subsidiary Companies

When you're considering establishing a branch or subsidiary in Hamriyah Free Zone, it's important to understand the requirements and structure involved.

A branch operates under the parent company's name without needing separate legal status, while a subsidiary is a distinct legal entity with its own shareholders.

Both options allow you to benefit from full foreign ownership and a supportive business environment.

Establishment Requirements

To establish a branch or subsidiary company in Hamriyah Free Zone, the parent company must submit several key documents, including its license, incorporation certificate, and a board resolution detailing the branch's intended operations.

The establishment process involves gathering required documentation to ensure compliance with local regulations.

You'll need to prepare:

1. Copies of the parent company's shareholders' and directors' passports and visas.
2. A No Objection Certificate (NOC), if applicable.
3. Additional forms as required by the free zone authority.

Operational Structure

Understanding the operational structure of branch and subsidiary companies in Hamriyah Free Zone is crucial for any business looking to expand.

Branch companies operate as extensions of a local or foreign entity, letting you tap into the parent company's resources and reputation. On the other hand, a subsidiary company stands as an independent legal entity, offering limited liability to its shareholders.

Both types maintain distinct legal identities and financial obligations separate from the parent company. To establish either, you'll need specific documentation, including a parent company license that allows trading and an incorporation certificate.

Both branch and subsidiary companies enjoy the benefits of 100% foreign ownership and no corporate tax, making them attractive options for various business activities.

Legal Compliance

Establishing a branch or subsidiary company in Hamriyah Free Zone involves navigating legal compliance requirements to ensure smooth operations.

To meet local regulations, you need to prepare and submit the necessary legal documentation. Here are three key requirements:

1. License allows trading: Both branch and subsidiary companies must acquire a business license that permits trading activities in the UAE market.
2. Documentation: For branches, you'll need the parent company's license, incorporation certificate, and a board resolution authorizing the establishment.
3. Ownership structure: Both entities benefit from 100% foreign ownership, eliminating the need for a local partner for licensing.

Facility Options Available

When you choose to set up your business in Hamriyah Free Zone, you'll discover a variety of facility options tailored to meet your operational needs.

The free zone offers 30 million sqm of industrial land, allowing you to lease plots starting from 2,500 sqm. You can construct facilities on up to 60% of your leased plot. A long-term renewable lease agreement of 25 years is available, with fixed rates for the first five years.

You'll also benefit from ready access to essential infrastructure, including ports, transportation, and utilities.

The customizable facilities include executive offices, pre-built warehouses, and industrial plots, ensuring you have the right space to support your trade license and business activities efficiently.

Registration Process Overview

To successfully navigate the registration process in Hamriyah Free Zone, you'll need to gather specific documents and complete a few key steps.

Start by filling out a sales inquiry form to provide details about your company type and facility interest.

Next, ensure you have the following necessary documentation:

1. Passport and visa copies of shareholders and managers.
2. No Objection Certificate (NOC) from the current sponsor, if applicable.
3. Business plans for your specific activities.

Once you've submitted everything, the process becomes more efficient.

Upon successful registration, you'll receive important documents such as your business license, Certificate of Incorporation, Memorandum, Articles of Association, and a lease agreement for your chosen facility.

Required Documentation

Gathering the necessary documentation is crucial for a smooth registration process in Hamriyah Free Zone. To obtain a license that allows trading, you'll need to prepare several required documents.

Start with the shareholder and manager passports, along with their visas. If you're opening a branch or subsidiary, include the parent company license, incorporation certificate, and a board resolution.

You must also provide a business plan outlining your specific activities and a No Objection Certificate from your current sponsor, if applicable. Additionally, a sales inquiry form is necessary to detail the company type, facility interest, and source of information.

Collecting these documents ensures your registration is efficient and streamlined, setting a solid foundation for your business.

Benefits of Operating in HFZ

Securing the right documentation sets the stage for the exciting benefits of operating in the Hamriyah Free Zone (HFZ).

Here are some key advantages you can enjoy:

1. 100% Foreign Ownership: You retain full control of your business without needing a local partner, enhancing your investment security.
2. No Corporate Tax: With no corporate or income tax, you can maximize your profits and reinvest in your company.
3. Customizable Facilities: HFZ offers a range of customizable facilities, from office spaces to industrial plots, to meet your specific business needs.

Additionally, the Hamriyah Free Zone Authority provides rapid company registration, allowing you to start operations in just one hour after obtaining your trade license.

This makes HFZ a smart choice for entrepreneurs.

Frequently Asked Questions

What Is a Freezone License?

A freezone license lets you enjoy freezone benefits, simplifying your registration process. It outlines license requirements for various business activities, providing operational guidelines and a cost comparison to help you make informed decisions about your venture.

How Many Types of Licenses Are There in the UAE?

In the UAE, you'll find three main business license types: Commercial, Service, and Industrial. Understanding trade license requirements and the UAE licensing process is crucial for smooth company registration and compliance with financial regulations.

Which Is the Cheapest Freezone Licence in UAE?

When you're looking for cost-effective options in the UAE, the cheapest free zone license starts around AED 11,000. Consider the operational benefits and competitive advantages this offers for your business setup and licensing fees.

How Much Is the Employee Visa for Hamriyah Free Zone?

The employee visa costs AED 3,785, covering immigration charges. You'll navigate the visa application process, meet residency requirements, and secure company sponsorship. This visa lasts two years and involves straightforward renewal procedures when needed.

Conclusion

In conclusion, Hamriyah Free Zone offers various licenses to suit different business needs, including commercial, general trading, e-commerce, and service licenses. Each license comes with specific advantages and facility options. The registration process is straightforward, requiring minimal documentation. By choosing to operate in HFZ, you can benefit from a strategic location and a business-friendly environment, making it an attractive option for entrepreneurs looking to establish or expand their operations in the region.