Sharjah Free Zone over the years has emerged as a viable business arena for all types of businesses. Rather, it would not be wrong to say that the city has emerged as an ideal option for company formation, thereby supporting the economic growth of the UAE. This is because of the various advantages it offers to business set up which includes of:
●
No
corporate or personal taxes
●
Strategically
located
●
Easy
accessibility to air and seaports, cargo, and warehouses
●
Paid-up
share capital is not required
●
Quick and
easy incorporation process
●
Speedy and
economical licensing
● 100% repatriation of profits and capital
● 100% free transfer of funds
Sounds Interesting! So, if you are now wondering how to obtain the Sharjah free zone license and the cost
for the same so that you can commence your business, then you need to worry at
all. To help you out, we have listed below the entire licensing procedure in Sharjah Free Zone.
Decide on Jurisdiction
Before going
further, you should be aware that there are majorly six types of free zones in
Sharjah, from which you need to decide where you can set up your business.
These comprise of:
●
Sharjah
Airport International Free Zone
●
Sharjah
Research Technology and Innovation Park Free Zone
●
Hamriyah
Free Zone
●
Sharjah
Publishing City Free Zone
●
The US
Regional Trade Centre Free Zone
● Sharjah Media City Free Zone
Ownership in Sharjah Free
Zone
A business set up in Sharjah Free Zone offers investors to
have ability to hold on to 100% ownership of the business and would not require
any local sponsor. Further, you can obtain a license from the concerned free
zone.
Licenses in Sharjah Free Zone
To commence a
business in Free Zone Sharjah, you
need to acquire license. For this, you first need to decide on the type of business activity or service
that you are interested to offer here which will determine the licenses you
will require accordingly. Basically, Sharjah
Free Zone offers essentially three types of licenses:
●
Trading License – To be issued for companies involved in industrial and
manufacturing activities.
●
Commercial License – To be issued for companies involved in trading or buying
and selling of goods.
● Professional License – To be issued for companies involved in providing services.
Obtaining your license
To obtain the Sharjah free zone license which will
allow you to run your business activity here, you need to require paying the
necessary fees depending on the type of business license you require. When
making your application, the following documentation along with the license
fees are required to be provided by you:
●
Completed
application form
●
Passport
size pictures
●
Passport or
visa copy of the owner or partners
●
Notarised
Memorandum of Association (must be notarized)
●
Share
capital information (if any)
●
Copy of
Initial Approval Certificate
●
Copy
initial approval fee payment
●
Company
registration form from the respective trading zone
● Tenancy or Lease agreement (if any)
What is the cost of Sharjah
Free Zone license?
As for the license costs in Sharjah Free Zone, it may vary
according to the type of business structure and location. Nonetheless, the
initial license cost for a company in Sharjah
Free Zone broadly takes into consideration the following:
●
Cost for
registering your business (One-Time)
●
Trade
name reservation cost (One-Time)
●
Cost for a
business license (Yearly)
● Office or business premises costs (Yearly)
● Visa cost per person
Now, let us consider the cost and fees break-up that you need to
keep in mind and fulfill in order to acquire your license in Free Zone Sharjah:
1.
Free Zone Registration
First you need to get your company registered in any of the selected
free zones. For this, you are required to pay fees to the Free Zone authority
which possibly will differ depending on the Free Zone and the company type.
One-time
Cost: AED 10000 – 45000 approx.
2.
Trade Name Registration
It
is vital to decide upon a valid trade name for your business and get it
registered.
One-time
Cost: AED 500-1000
3.
Drafting an Attestation of MOA
You
need to draw out the Memorandum
of Association (MOA) is which needs to be notarized and attested. The attestation cost will differ depending
upon the share capital invested.
One-time
Cost: AED 400
4.
Office or premises rent
You need to have an office space or premises to
run your business in Sharjah Free Zone.
For this, you can rent out a property, though the rental cost varies depending on the selected Free Zone
and the size of the property.
Average Yearly or Term Cost: AED 15000 approx.
5.
Visa Fees for employees
You will need to require visas for the
employment of ex-pat
employees which is likely to may differ depending on the employees you keep.
Also, the renewal fees of their visa will be required.
Yearly
Cost: AED 3,000 – 5,000 each approx.
6.
Registered agent fee
You will need an agent or local mediator irrespective of any Free Zone
you select in Sharjah. The agent will provide you assistance in your business
set up and also during the renewal of your license, besides authorizing every
governmental process.
One-Time
Cost
7.
Bank Guarantee Amount
You also need to provide a definite bank
guarantee amount for your employee which varies.
Yearly
Cost: Varies
8.
Free Zone Business License
Based on your business activity, your selected
Free Zone will issue the license.
Yearly
Cost: AED 10000 – 50000
9.
Market Fees
On the total amount of rent on your rented
premises for business, a percentage of this is remunerated to the Government.
An office or shop gives 5% whereas a warehouse gives 20%. However, this may
vary accordingly as per the location and size.
Yearly
Cost: AED 1250
10.
Additional other costs
There are many additional costs too which include initial approvals, notarization charges, etc.
Hence, these are the essential costs linked to getting your license
and setting up your company in Sharjah
Free Zone. However, these may vary depending on a number of factors like
business type, location, and kind of company.
