Establishing a company in the Sharjah Free Zone

Learn about the most famous free zones in Dubai.

١٤ يناير Establishing a company in the Sharjah Free Zone

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Establishing a company in the Sharjah Free Zone is an attractive step for many investors and entrepreneurs looking to benefit from a flexible business environment and multiple tax benefits. Sharjah is known for its strategic location near international ports and major commercial centers in the UAE, making it an ideal destination for companies seeking to expand and reach new markets in the Middle East and beyond.

The Sharjah Free Zone boasts a sophisticated infrastructure that caters to the needs of various sectors, whether your business is in manufacturing, trade, logistics, or technology. Additionally, the free zone offers easy and quick company formation procedures, with strong government support that facilitates legal and administrative processes. Investors can establish their companies without the need for a local partner, giving them full ownership of the business and enhancing decision-making freedom.

The Sharjah Free Zone also offers unique tax benefits, such as full exemption from income and profit taxes, as well as customs exemptions on exports and imports. These benefits contribute to improving business profitability and reducing operating costs. Furthermore, the free zone is an ideal environment for small and medium-sized enterprises (SMEs) due to its lower costs compared to other regions, making it easier for startups to start their businesses with limited resources.

By establishing a company in the Sharjah Free Zone, entrepreneurs can benefit from diverse growth opportunities and continuous support from government agencies. This free zone offers endless opportunities for growth and innovation, making it an ideal choice for anyone seeking to build a successful business future in the UAE.

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Benefits of Establishing a Company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone offers many benefits that make it a prime destination for investors and entrepreneurs. Here are the most prominent of these benefits:

100% Foreign Ownership: Establishing a company in the free zone allows foreign investors to fully own the company, without the need for a local partner, giving them complete control over their business.

Tax Exemptions: Companies in the free zone enjoy full tax exemptions on corporate and personal income taxes, as well as VAT exemptions on certain activities, increasing business profitability.

Customs Exemption: The free zone offers customs exemptions on imports and exports, which contributes to reducing logistics costs and enhancing operational efficiency.
Ease of Access to Markets: Sharjah enjoys a strategic location between Dubai and Abu Dhabi, providing easy access to regional and international markets. It also offers advanced port and airport infrastructure.
Flexibility in Repatriating Capital and Profits: The free zone allows investors the freedom to repatriate capital and profits outside the UAE without restrictions, enhancing confidence in the investment environment.
Simple and Quick Setup Procedures: The Sharjah Free Zone features quick and simple set-up procedures, with significant support from government agencies to facilitate the establishment of new businesses.
Advanced Infrastructure: The free zone includes modern facilities, such as advanced commercial offices and warehouses, as well as robust logistics services that contribute to business growth.
A Stimulating Business Environment: The free zone provides a competitive and supportive business environment, with access to a large network of local and international companies.
Lack of Restrictions on Labor Hiring: Companies in the Sharjah Free Zone can easily hire foreign workers without restrictions, providing access to the required skills.
Competitive Operating Costs: Compared to some other free zones, Sharjah offers a business environment with lower costs, both in terms of rent and administrative costs.

Documents Required for Establishing a Company in a Free Zone

Establishing a company in a free zone requires submitting a set of necessary documents that vary depending on the type of activity and company. However, the general documents required for establishing a company in a free zone include the following:

Copies of Passports: Clear copies of the passports of all founders, shareholders, and directors of the company must be submitted.
Incorporation Application Form: Complete the company incorporation application form obtained from the relevant authority in the free zone.
Business Plan: A detailed business plan is required, outlining the type of business activity and the company’s strategic objectives.
Personal Photograph: Recent passport-sized photographs of shareholders and directors are usually required.
Lease Contract Signature: If renting an office or warehouse in the free zone, the lease contract for the commercial location from which the company will operate must be submitted.
Board of Directors Resolution (if a subsidiary): If the company is a subsidiary or branch of another company, the parent company’s board of directors’ resolution to open a branch or subsidiary in the free zone must be submitted.
Memorandum and Articles of Association: The company’s articles of association and articles of association, which regulate the relationship between shareholders and their rights, must be submitted.
No Objection Letter: If a director or shareholder is already working in the UAE, a No Objection Letter (NOC) may be required from the current employer.
Power of Attorney: If a legal representative has been appointed to complete the incorporation procedures, a notarized power of attorney must be submitted.
Good Standing Certificate: In some cases, a good standing certificate may be required from the legal authorities.
Business Activity Details: The business activity the company will be conducting must be specified and the necessary permits or approvals must be submitted if the activities require special licenses.

Types of Licenses in the Sharjah Free Zone

In the Sharjah Free Zone, several types of licenses can be obtained to suit different business requirements. Here are some common license types in the Sharjah Free Zone:

General Trade License: This license allows general commercial activities within the free zone.
Manufacturing License: This license allows the manufacture of products within the free zone.
Services License: This license allows the provision of various services within the free zone.
E-Commerce License: This license allows companies to sell products and provide services online.
International Company License: For companies wishing to establish an office in the free zone to represent and carry out their international activities.
Investment License: This license allows foreign investors to invest in the free zone.
Innovation and Technology Company License: This license allows companies operating in the fields of innovation and modern technology to benefit from special facilities.

In conclusion, establishing a company in the Sharjah Free Zone is a strategic move for investors seeking a favorable business environment that offers unique advantages. The Sharjah Free Zone offers a wide range of opportunities and facilities that make it a preferred destination for small, medium, and large enterprises alike. With flexible tax exemptions, 100% company ownership, and easy access to regional and international markets, investors can benefit from a reliable and stable business environment that supports sustainable growth.

The free zone’s simple and rapid procedures also facilitate the process of company formation, reducing administrative complications and saving time and effort. In addition, Sharjah’s modern infrastructure is a major attraction for companies seeking technologically advanced locations equipped with state-of-the-art logistics services.

It is important for investors to carefully define their business needs and choose the appropriate structure for their company to ensure the success of the formation process. Working with specialized company formation consultants can help simplify the process and avoid any legal or procedural obstacles that startups may face.

In conclusion, establishing a company in the Sharjah Free Zone opens up vast opportunities to benefit from the advantages of its strategic location, competitive costs, and thriving business environment. Thanks to its flexible policies and continuous support for investors, the Sharjah Free Zone remains an excellent choice for anyone looking to establish a business in one of the most prosperous markets in the Arabian Gulf region. Taking this step will enable companies to expand and grow in a supportive and diverse environment.