There are limited numbers of free zones present in most of the emirates in UAE except Dubai. But now, most of these other emirates of UAE are also giving importance to free zones. For this purpose, they are not only increasing the number but also the quality of these free zones.
An example in this regard is the emirate of Sharjah. Sharjah has the third-largest number of free zones after Dubai and Abu Dhabi. Out of several free zones in Sharjah, the largest and most important one is Hamriyah Free Zone (HFZ).
Hamriyah Free Zone is not only the largest free zone in Sharjah but it is, in fact, the 2nd largest in UAE after JAFZA. Most of the free zones in UAE are exclusive to a single business sector. But Hamriyah is one of those free zones that provide business opportunities for several industries.
This free zone in Sharjah is divided into various zones. These are Hamriyah SME zone, Hamriyah Logistic Village and Hamriyah MB Zone. All these zones provide opportunities for the formation of various types of companies. Another important feature of this free zone is that Hamriyah is located at a strategic location in the UAE.
Cost of Company Formation in Hamriyah Free Zone
An important factor that distinguishes Hamriyah FZ from many other free zones in UAE is its cost-effectiveness. It means one can establish a business at a relatively lower cost and get same benefits that are available in most of the other free zones in UAE. Due to extensive business opportunities and low cost, Hamriyah free zone is especially feasible for SMEs and micro-businesses. Apart from that, large industries are also sponsored due to the availability of warehouses.
The two main types of companies established in HFZ are free zone establishment (FZE) and Free Zone Company (FZC). For both these company structures, the minimum capital requirement is AED 150,000. In case of setting up a branch of local/international company, there is no minimum capital required.
Company Formation Cost for Offices in HFZ
In order to get an idea of the cost of company formation in HFZ, it is necessary to know the types of offices and facilities available here. HFZ is providing various types of packages according to the type of business. Company formation cost primarily depends on the selection of these packages.
There are total five options that are available in Hamriyah Free Zone. The cost for all these packages is different and are further divided into various sub-packages.
- HBC Offices
A company with a single shareholder can choose this type of office. There are 2 packages available in this category. Most of the features are common in both these packages. They are available with a commercial/service license. With such type of packages, three service activities or trading of up to 3 product categories are allowed.
The only difference between both these business structures is the number of visas one can apply for. A single visa can be applied with 1st package while the 2nd package allows provision of 4 visas. There is no requirement for a bank letter for both of these packages. As there is very little difference between these two packages, so the difference in cost is also marginal.
There are three types of packages available for this type of office. Package 1 can only be acquired by a free zone company (FZC) with 2 to 4 shareholders. Like HBC offices, this package also allows up to 3 service activities or trading of 3 products category.
The 2nd and 3rd packages are open for FZE (with single shareholder), FZC (2-4 shareholders) and a branch of a company. 5 services or products along with 6 visas are allowed in package 2. General trading and investment along with 7 visas are available with package 3.
The cost of these three packages of e-office is different according to their features. Package 1 is the least expensive one while Package 3 is the most expensive package for businesses.
- Executive Office
This is the most supreme office available for company formation in Hamriyah free zone. There are 5 types of packages available in this type of office. An important difference between these packages is the size of offices available. These offices are available from 15 m2 to 40 m2 of sizes. Most of the other facilities are similar. Minimum additional charges of such offices (without visa cost) are AED 50,000.
Warehouses are available for large industrial units. Here in this option, one can get several packages according to the requirement of the company. There are 3 packages available for warehouses. The sizes of all these packages are different while there is a difference in the type of facilities available for these packages.
Additional charges for a license, service fee, incorporation fee, and refundable deposit are a minimum of AED 22,500. Warehouses are available from 276 m2 to 614 m2 in sizes. There are a different number of offices and other facilities available in these 3 different types of warehouse packages.
- Prime Industrial Land
If you want to build your own industrial structure, then the land is also available in Hamriyah free zone for this purpose. You can buy plots as prime industrial land from 2,500 m2 in size. This land is available with a minimum price of AED 30/m2. A fixed land lease is available for the first 10 years. Investors are allowed to develop up to 60% of the plots. All these factors assist to develop your company on these plots.
Complete details about the final cost of company formation in Hamriyah Free Zone can only be known after taking guidance from a formidable consultancy firm. You can contact RIZ & MONA Consultancy for this purpose.