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Establishing a company in Hamriyah Free Zone

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٠١ أغسطس Establishing a company in Hamriyah Free Zone

How to set up a company in Hamriyah Free Zone? The free zones in the UAE are considered among the most prominent investment destinations that attract entrepreneurs and investors from all over the world. Among these zones, Hamriyah Free Zone stands out as one of the distinguished options for establishing companies. Hamriyah Free Zone provides an ideal environment for business, as it enjoys advantages such as tax exemptions, no need for a local partner, and easy registration and licensing procedures. This article aims to shed light on the steps and requirements for establishing a company in Hamriyah Free Zone , in addition to the benefits that investors can obtain in this strategic region.

Establishing

Requirements for establishing a company in the Hamriyah Free Zone

Establishing a company in the Hamriyah Free Zone requires following a set of requirements and procedures. Here are the most important requirements:

  1. Choose the type of company: You must decide what type of company you want to establish, such as a limited liability company (LLC) or a branch of an existing company.
  2. Choosing the business activity: The business activity that the company will carry out must be determined, and it must be compatible with the activities permitted in the free zone.
  3. Submit the necessary documents: A copy of the passport of the partners and investors. Personal photos of the partners. The company’s articles of association or registration certificate (if it is a branch of an existing company).
  4. Choosing a company name: The company must choose a trade name that complies with applicable laws and regulations.
  5. Submitting the application: After preparing all the documents, the application must be submitted to the Hamriyah Free Zone Authority.
  6. Obtaining the license: After reviewing and approving the application, the commercial license will be issued.
  7. Opening a bank account: After obtaining the license, a bank account must be opened in the company’s name.
  8. Renting an office: The law in the free zone requires an office to establish the company, and office space can be rented in the free zone.
  9. Tax Registration: The company must register with the Federal Tax Authority if it intends to deal with VAT.

By following these steps, investors can establish a successful company in the Hamriyah Free Zone and benefit from the many advantages that this zone offers.

Can foreigners fully own a company in Hamriyah Free Zone?

Yes, foreigners can fully own a company in the Hamriyah Free Zone without the need for a local partner. This feature is one of the most prominent incentives offered by the free zones in the UAE, making it an attractive destination for foreign investors. This opportunity allows them to benefit from the full returns of their business and make company management decisions without restrictions or interference.

Establishing a wholly foreign-owned company in the Hamriyah Free Zones contributes to enhancing the business environment and encouraging investment in a variety of sectors. This includes areas such as technology, trade, services, and various industries. In addition, the free zone offers many benefits such as tax exemptions and facilitation of procedures, making company formation easy and fast.

To avail this benefit, investors must comply with the terms and requirements set by the Free Zone Authority. This includes submitting necessary documents such as passports, articles of association, and specifying the permitted business activities. Investors are advised to conduct extensive research and select activities that align with their investment strategies. In general, 100% foreign ownership of companies in the Hamriyah Free Zone is an important step towards promoting growth and prosperity in a dynamic business environment.

Advantages of establishing a company in Hamriyah Free Zone

Establishing a company in Hamriyah Free Zone comes with many advantages that make it an attractive option for investors and businessmen. Here are the most prominent of these advantages:

  1. Tax Exemptions: Companies in the Hamriyah Free Zone enjoy tax exemptions, which helps reduce operating costs and increase profits.
  2. No need for a local partner: Foreign investors can fully own the company without the need for a local partner, giving them greater freedom to manage their business.
  3. Quick and easy procedures: Establishing companies in the Hamriyah Free Zone is characterized by quick and easy procedures, which helps speed up the process of starting a business.
  4. Advanced Infrastructure: Hamriyah Free Zone provides modern and advanced infrastructure, facilitating business operations, transportation and logistics services.
  5. Access to markets: Hamriyah Free Zone is a strategic point that provides access to the Gulf and Middle Eastern markets, which contributes to expanding the scope of business.
  6. Investment Incentives: Hamriyah Free Zone offers various investment incentives, such as technical and advisory support, which helps startups grow and flourish.
  7. Flexibility in business operations: Companies in the free zone enjoy greater flexibility in choosing business activities, allowing them to expand into different areas.
  8. Safe Business Environment: The free zone provides a safe and stable business environment, which enhances investor confidence and encourages them to invest.

In short, establishing a company in the Hamriyah Free Zone provides investors with many advantages that contribute to the success of their businesses and the achievement of their commercial goals.

Establishing

Cost Factors of Establishing a Company in Hamriyah Free Zone

Establishing a company in the Hamriyah Free Zone requires considering several factors that affect the cost of establishment. Here are the most prominent of these factors:

  1. Business formation costs vary depending on the type of business (e.g. LLC, branch, etc.). Each type has different requirements and fees.
  2. The choice of business activity also affects the cost, as some activities may require special licenses or additional fees.
  3. The costs of obtaining a commercial license, which may vary depending on the type of activity and the size of the company, are included.
  4. Establishing a company in a free zone requires an office, and rental prices vary depending on the location and space required.
  5. In some cases, investors may need to hire legal advisory services or services to facilitate the incorporation procedures, which increases the cost.
  6. The costs of operating the company after incorporation, such as salaries, utilities, and logistics.
  7. If the company will be dealing with VAT, there may be additional fees for tax registration.
  8. The cost may include other government fees related to required licenses or permits.
  9. Includes costs of furniture, office equipment and technology needed for the business.
  10. It is also important to calculate the costs of financial reserves to cover any unexpected expenses in the initial stages of establishment.

Understanding these factors helps investors estimate the total cost of setting up a company in the Hamriyah Free Zone, enabling them to plan financially better.

Opening a bank account for your company in the free zone

You can open a bank account for your company in the Hamriyah Free Zone after completing the company establishment procedures and obtaining a commercial license. This step is necessary to facilitate the financial and administrative operations of your company. Opening a bank account requires submitting a set of documents, including the company’s commercial license, the articles of association, and the passports of the partners.

Banks in the UAE make it easy to open accounts for new companies, offering a variety of financial services that suit business needs, such as international transfer services, credit cards, and online banking services. It is advisable to look for the bank that offers the best offers and conditions that suit the nature of your business, as fees and services vary from one bank to another.

After opening an account, you will be able to manage your company’s finances effectively, making it easier to deal with suppliers, customers, and pay operating expenses. In addition, having an official bank account helps enhance your company’s credibility in the market and allows you to facilitate marketing and expansion processes. In general, opening a bank account is an essential step to support the success of your business in the Hamriyah Free Zone, and represents an important starting point for managing the business professionally and effectively.

In conclusion, establishing a company in the Hamriyah Free Zone is a strategic move for investors and entrepreneurs seeking to capitalize on their opportunities in a distinguished business environment. With tax exemptions, easy registration procedures, and flexible ownership, the Hamriyah Free Zone offers many advantages that contribute to achieving success and growth. The advanced infrastructure and strategic location of the zone make it an ideal destination for expanding businesses and reaching local and international markets. So, if you are thinking of starting your own project, the Hamriyah Free Zone provides you with the necessary foundations to achieve your business goals with ease and convenience.

Frequently asked questions about establishing companies in the free zone

What are the costs associated with setting up a company in the Hamriyah Free Zone?

Costs include licensing fees, office rent, legal advice, and operating expenses.

Are there any restrictions on business activities in the free zone?

Yes, investors must choose business activities that comply with the regulations in force in the free zone.

What are the benefits of establishing a company in Hamriyah Free Zone?

Benefits include: tax exemptions, fast incorporation procedures, advanced infrastructure, and access to local and international markets.