Hamriyah Free Zone (HFZ)

Introduction

The beauty of the business of hub of the Middle East lies in the business friendly environment. There are many factors that have contributed to this environment in Dubai. From business regulations and trade policies to immigration and tax incentives, each of the factors has made it possible for Dubai to become one of the most visited places for the business community from all around the world.

The creation of free zones is one of the most important factors that have led the business community considering Dubai as the favourite place to invest their hard earned money. Every business setup in Dubai has been able to not only cover the Middle East but also reach the other areas of Asia. In other words, UAE provides a route for companies to reach the markets in the Asian region.

Hamriyah Free zone can be called one of the best free zones in the region because of the way it has been developed. It’s located in Sharjah, a city in the UAE which where people and the businesses have access to an international airport as well as a seaport that allows goods to come in and go out to the rest of the world. The Hamriyah free zone allows the Dubai free zone companies operating within its boundaries to connect with the market easily. It is not only the location of the free zone but also the infrastructure developed around it that has made it possible for the companies to access markets and people. The free zone has been growing at a healthy rate and is a great prospect for businesses to invest in.

Business setup in HFZ

The volume of business investment coming in to the UAE is tremendous and the best way to accommodate it in the economy is to allow free zones to become home to the companies being formed. These companies are being given different incentives to operate in the UAE and contribute to the economic growth of the emirates.

The HFZ Authority allows Dubai free zone companies to register businesses and obtain licenses. Once this is done by the companies, they are able to enjoy the world class business facilities being provided by the free zone. Some of these are business friendly infrastructure, complete repatriation of the profits earned and complete ownership without the need of a local sponsor to own 51% of company shares.

Business setup in Dubai has been made easier thanks to the policies being followed by the free zone authorities. The registration process for companies is easy and quick which reduces the frictions caused by time and load of documentation as well.

The two types of companies that the authorities allow to be formed in the HFZ are free zone companies and Branch Office businesses that are already established whether in the UAE or outside of it.

For the former, requirements such as the minimum land requisition and warehousing facilities are to be fulfilled if free zone companies are to be incorporated. For the branch office, there is no minimum capital requirement.

Open branch office in Hamriyah

There are two types of branch offices that can be established in the HFZ.

For the branch office of local company, the requirements are:

  1. Duly notarized Board Resolution copy
  2. Power of Attorney and copies of passport, notarized and attested
  3. Manager appointment
  4. Notarized and attested copy of MOA
  5. Reference letter form bank and original Credit Appraisal
  6. Notarized copy of the parent company’s Operating license

For the branch office of an international company, the requirements are:

  1. Duly notarized Board Resolution copy
  2. Power of Attorney and copies of passport, notarized and attested
  3. Manager appointment
  4. Reference letter form bank and original credit appraisal
  5. Notarized copy of Certificate of Incorporation

Salient features of the Hamriyah Free Zone (HFZ)

The Hamriyah free zone allows companies to be at ease while they conduct their business operations in Sharjah. The ease is provided through the below listed facilities.

  1. Renewable 25 years land lease options available
  2. Easy lease options available for office and warehousing facilities
  3. Access to the seaport
  4. Facilities are provided by the International Business Center
  5. Accommodation and medical facilities are available
  6. First class transport system and access to an international airport is provided
  7. Electricity at low rates is provided
  8. Large skilled labor supply available
  9. Advanced and improving telecommunication system

These are some of the facilities that allow companies to produce better results and earn huge profits. The facilities allow companies to gain efficiency and economies of scale as they expand.

Business licenses offered by HFZ

The three types of licenses offered by the HFZA are industrial license, commercial license and service license. The industrial license allows manufacturing and other such activities. The commercial license allows companies to export, import and sell goods that are mentioned on the license.

The third type, service license allows companies to provide specialized professional services to its clientele.

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