Business Setup in Sharjah Free Zone

Looking for your next business opportunity? Business setup in a Sharjah free zone may be the answer. The emirate of Sharjah has access to major ports and airports, and is strategically located between Dubai and the northern emirates, making it a central and business-friendly location in the UAE. 

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Starting a Business in Sharjah Free Zone

As the third largest emirate, Sharjah is quickly becoming an affordable option for SMEs, freelancers, multinational companies, and startups to thrive. Prospective individuals considering company formation in a Sharjah free zone are incentivized by access to modern amenities, unrestricted trading, avoiding the bureaucratic red tape that often comes with business setups.

All the Sharjah free zones are major hubs for businesses across industries, housing thousands of companies from over 160 countries. Some of the industries operating in the free zone include:

Wholesale & Retail

Logistics & Transportation

Oil & Gas

Healthcare

Media & Publishing

Services & Consultancy

Renewable energy

Food

Aviation

Environmental technology

Most free zones offer pre-built offices and warehouses, along with land plots so that businesses may build their own spaces if they wish to do so.

Benefits of Business Setup in a Sharjah Free Zone

Setting up a business in a free zone can be a good idea for many reasons. It is an ideal location for foreign investors and budding entrepreneurs to diversify their income, with the added bonus of dealing with minimal paperwork and a relatively straightforward process.

How Many Free Zones Does Sharjah Have?

Sharjah has five major free zones. Every free zone offers unique features for investors and businesses:

Free Zones in Sharjah

Hamriyah Free Zone (HFZ)

Sharjah Research, Technology, and Innovation Park (SRTIP Free Zone

Steps to Set Up a Business in a Sharjah Free Zone

For anyone considering business setup in a Sharjah free zone, the process is much easier than setting up in the sharjah mainland. You can always hire a business setup consultant to handle the process for you, which can save you a considerable amount of time and effort. 

Step 1

Pick a Free Zone to Operate in

The first step is to choose the free zone to establish your business in. This means clearly defining your business needs and goals so that you can pick the free zone that is most suited to your needs.
Step 1

Step 2

Decide on a Legal Entity and Choose Trade Name

You can choose between a Free Zone Establishment (FZE), Free Zone Company (FZCO), Free Zone Limited Liability Company (FZ LLC), or opening a branch of an existing business. Not every free zone allows every type of entity so make sure to do your due diligence.

An FZE is owned by a single shareholder (corporate entity/individual) The owner has complete control over the business and has limited liability protection. A FZCO can have up to 50 shareholders and is governed by a jointly agreed management structure. An FZ LLC is similar to an LLC you might operate on the mainland, only exempt from taxes.

You should also choose a trade name. This is the name you will use to register your business. You can find the rules for choosing a trade name along with checking if your desired name has already been registered on the relevant free zone authority’s website.

Step 2

Step 3

Apply for a Business License

The type of business license you need to apply for will depend on the type of company you plan on establishing. Examples of licenses include trade, industrial, and professional.
Step 3

Step 4

Find an Office Space

You can either buy or rent office space in a free zone. If you are planning to establish a manufacturing business, you can buy a plot of land to build warehouses and/or offices or lease a pre-existing build.
Step 4

Step 5

Submit Documents and Pay Registration and License Fees

The last step is applying for a Sharjah free zone license and paying the required fees. Every free zone requires different documents, so take your time to collect all the paperwork before you start the process. You will need to submit some paperwork to get initial approval from the relevant free zone authorities. Once you have gotten the initial approval, you can register your business. This involves paying the registration and license fees, which will vary on the type of license you are applying for. When you receive your free zone license in Sharjah and the lease agreement, the authorities will begin to process your visa.
Step 5

Types of Sharjah Free Zone Licenses

Trading License

With a general trading license, you can import, export, and sell wholesale goods. This is a good option for businesses looking for a free zone license in Sharjah that supports various trading activities.

Professional License

Professional licenses are granted to individuals looking to offer specialized services like consulting, IT, legal, accounting, advertising, security, and architecture. As this license needs to be renewed every year, you should make sure to keep your professional certificates up to date.

Commercial License

A commercial license is different from a general trading license as it covers specific goods like furniture, software, automobiles, foodstuffs, medical equipment, and readymade garments. If you are considering a business setup in a Sharjah free zone that allows you to export or import products from overseas, you need to apply for this license.

Industrial license

Any business that uses specialized plant equipment needs an industrial license to operate. Some examples include food packaging, manufacturing paper, large scale production of chemicals, and assembling equipment, machines, or engines.

How Much Does a Sharjah Free Zone License Cost?

If you are considering SPC (Sharjah Publishing City Free Zone) as your location of choice, you can get a business license that is valid for one year for AED 6,875. SHAMS (Sharjah Media City) offers 0-visa packages starting at AED 5,760.
For those considering SRTIP (Sharjah Research, Technology, and Innovation Park), 0-visa packages start at AED 5,510. In the case of HFZ (Hamriyah Free Zone), individuals will have to shell out AED 11,000 for a one-visa package. Certain free zones also occasionally run holiday promotions with discounted prices.
Freezone Visas License Cost
SRTIP 0 AED 5,510
SHAMS 0 AED 5,760
SPC 0 AED 6,875
HFZ 1 AED 11,000

Let A&A Associate Help You Succeed in Sharjah!

A&A Associate is one of the largest business setup companies in the UAE. You can get an end-to-end service that handles company formation in a Sharjah free zone, making it easy for savvy investors and entrepreneurs to enter the UAE market. Business setup consultants take care of the whole process, from handling the paperwork to offering tailored solutions for your unique business needs.

Faq

A free zone is a specific area with special trade and tax rules. In the UAE, every emirate has designated free zones subject to its own rules and regulations. These free zones were created to attract foreign investment and reduce the country’s reliance on oil. The emirate of Sharjah has five major free zones.
The time to get a license will depend on the type of license you are applying for and the location of your business. For example, the SAIF Zone offers licenses within an hour, while SPC Zone grants licenses within 45 minutes. The time to get a license also depends on your business, and whether it is subject to any special rules.
The price of setting up a business will depend on the free zone you are operating in. The SRTIP (Sharjah Research, Technology, and Innovation Park) offers a 0-visa package that starts at AED 5,510. The total cost of setting up a business is based on factors like the number of employees, office space, equipment costs, license validity requirements, and any related startup costs you might have.
If you are considering company formation in a Sharjah free zone, Sharjah Media City (SHAMS) and SRTIP (Sharjah Research, Technology, and Innovation Park) are some of the cheapest. SHAMS offers a zero-visa package that starts at AED 5,760 while SRTIP’s package starts at AED 5,510.
Starting a business in a free zone can be advantageous for multiple reasons. Free zones are exempt from taxes, offer 100% ownership of your business, affordable labour and infrastructure, low operating costs, no customs, and easy access to regional markets.
Anyone looking at business setup in a Sharjah free zone should know that corporate tax registration is compulsory for all businesses in UAE, regardless of where they operate. However, most free zone businesses do not need to pay taxes.
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