One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

Establishing a company in Sharjah Free Zone

قوانين الاستثمار في دبي

١٥ يونيو Establishing a company in Sharjah Free Zone

How to establish a company in the Sharjah Free Zone? The Sharjah Free Zone is one of the most prominent economic destinations in the UAE, providing an ideal environment for establishing companies and achieving growth. This zone offers many competitive advantages, such as tax exemptions, full foreign ownership, and easy registration and licensing procedures. The commercial activities available in the free zone are diverse, making it a preferred destination for investors from various sectors. In this article, we will review the steps for establishing a company in the Sharjah Free Zone , highlighting the advantages and opportunities available to investors.

Establishing

Sharjah Free Zone

Sharjah Free Zone is one of the most prominent free zones  that are considered economic destinations in the United Arab Emirates, as it provides an ideal environment for investors and businessmen. This zone was established in 1995, and aims to attract local and foreign investments by providing competitive incentives. Sharjah Free Zone is distinguished by its many facilities, such as tax exemptions on profits and no personal income tax, making it an attractive option for investors.

The free zone includes a variety of economic sectors, including trade, industry, and services, allowing investors to choose the activities that suit them. The zone also provides advanced infrastructure, including offices, warehouses, and logistics facilities, which facilitate the workflow and help achieve growth.

Sharjah Free Zone contributes to strengthening the emirate’s position as a leading business hub in the region, thanks to its strategic location close to airports and ports. The zone also offers support and assistance programs for investors, ensuring a smooth experience in establishing their businesses. With all these advantages, Sharjah Free Zone is an ideal destination for any investor seeking to enter the UAE market and achieve success.

Benefits of establishing a company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone offers many advantages that make it a distinctive destination for investors. Among these advantages are:

  1. Full Foreign Ownership : Foreign investors are allowed to own 100% of the company without the need for a local partner, which promotes complete control over the business.
  2. Tax Exemptions : Companies in the free zone enjoy tax exemptions on profits, which helps in increasing financial returns.
  3. Ease of procedures : The free zone provides quick and simple registration procedures, making it easy for investors to start their businesses without complications.
  4. No personal income tax : The free zone does not impose any personal income tax, which increases its attractiveness to investors.
  5. Flexibility in business activities : Many commercial and service activities are available, allowing investors to choose the field that suits them.
  6. Availability of advanced facilities : The free zone includes an advanced infrastructure that includes offices, warehouses, and logistics facilities that facilitate the workflow.
  7. Access to global markets : Sharjah is strategically located, facilitating access to global and Middle Eastern markets.
  8. Government Support : Companies in the free zone enjoy significant support from the local government in various areas, such as finance and marketing. These benefits are attractive to investors looking to establish successful and profitable businesses in an encouraging environment.

Documents required to establish a company in the free zone 

To establish a company in the Sharjah Free Zone, a set of basic documents must be submitted. These documents include:

  1. Registration Application Form : The registration application form must be filled out, which includes details about the company and its activity.
  2. Founders’ Passports : Copies of all founders’ passports, which must be valid.
  3. Personal photos : Recent passport-sized photos of the founders.
  4. Business Plan : A business plan must be submitted that outlines the company’s goals and business activity.
  5. Proof of address : Documents that prove your residential or office address, such as a utility bill or lease.
  6. A copy of academic certificates : In some cases, copies of the founders’ academic certificates may be required.
  7. Company Documents : If the company is a branch of an existing company, documents proving the registration of the parent company, such as the commercial register, must be submitted.
  8. Power of Attorney : If there are agents or representatives, a power of attorney must be submitted stating their powers.
  9. Financial receipts : proof of payment of the fees required to establish the company.

It is advisable to check the exact requirements with the relevant authority in the Sharjah Free Zone, as documents may vary depending on the type of business activity.

Procedures required to establish a company in the free zone

To establish a company in the Sharjah Free Zone, a set of organized procedures must be followed. Here are the necessary steps:

  1. Determine the type of business activity : Determine the type of activity you wish to practice, as it affects the type of license required.
  2. Choosing a company name : Choose a company name that complies with local laws, and make sure it is not used by other companies.
  3. Submitting the registration application : Fill out the registration application form provided by the authority responsible for the free zone, and submit it with the required documents.
  4. Submit the required documents : Attach the required documents such as passports, personal photos, business plan, and proof of address.
  5. Pay the fees : Pay the fees required to register and establish the company.
  6. Obtaining the license : After reviewing the application and documents, you will obtain the commercial license necessary to practice the activity.
  7. Open a bank account : Open a bank account for the company in one of the approved banks in the Emirates.
  8. Company Registration : Officially register the company in the commercial register of the free zone.
  9. Office Securing : Securing an office or workspace within the free zone in accordance with the Authority’s requirements.
  10. Obtain additional licenses (if required) : If your business requires additional licenses (such as employment or special activity licenses), you must obtain them.
  11. Appoint a legal representative (if necessary) : You may need to appoint a legal representative to handle the company’s legal and administrative matters.

Once you have completed these procedures, you will have established your company in the Sharjah Free Zone and ready to go.

Establishing

Types of licenses in Sharjah Free Zone 

Sharjah Free Zone offers several types of business licenses to meet the needs of different investors and companies. Here are the main types of licenses available:

  1. Commercial License : Granted for general commercial activities, such as trading in goods and products.
  2. Industrial License : It is granted to companies working in the field of manufacturing or production, and covers light and heavy industries.
  3. Service License : It is allocated to activities that provide services such as consulting, education, and marketing.
  4. Assembly and Re-Export License : Granted to companies working in the field of assembling products from various sources and re-exporting them.
  5. Investment License : Granted to investors who wish to enter into investment partnerships or development projects.
  6. Branch License : This is for branches of existing companies, allowing them to expand their business without having to establish a new company. Each type of license has specific requirements and documents, so it is best to make sure of the appropriate type based on your business activity.

In conclusion of our article on establishing a company in the Sharjah Free Zone , it is clear that this area represents an ideal opportunity for investors seeking to achieve success in a developed economic environment. Thanks to the unique advantages it offers, such as tax exemptions and 100% company ownership, in addition to the advanced infrastructure, the free zone stands out as an attractive option for businesses. Following the correct procedures and submitting the necessary documents contribute to facilitating the establishment process, giving entrepreneurs the opportunity to focus on growing their companies and expanding their activities. Therefore, entering the market through the Sharjah Free Zone is a strategic step that opens up wide horizons for investment and contributes to strengthening the local economy. We invite all investors to explore this opportunity and interact with the relevant authorities to obtain more information and support, which will enable them to successfully achieve their business goals in this dynamic environment.

Frequently asked questions about establishing a company in the Sharjah Free Zone