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Overview of Business Setup in Sharjah FreeZone

Sharjah, the third-largest emirate of the UAE, is rapidly becoming a preferred hub for entrepreneurs and investors seeking cost-effective and flexible business setup options. With its strategic location, affordable licensing packages, and investor-friendly policies, the Sharjah Free Zones offer a gateway to both Middle Eastern and international markets.

Whether you are starting a small trading company, a service firm, or a light manufacturing unit, Sharjah’s free zones provide diverse opportunities with minimal bureaucracy. Sharjah’s free zones are designed to serve as gateways to both the local and international markets.

With a forward-thinking government and a strong focus on innovation, the emirate provides a supportive environment for businesses of all sizes, from tech startups to large industrial operations.

Why Choose Sharjah Free Zones for Your Business?

Choosing the right location is the first step toward business success. Sharjah free zones offer a compelling value proposition that stands out in the UAE market.

The benefits of a Sharjah free zone company formation are numerous and attract investors from around the world:

  • 100% Foreign Ownership: Unlike many Mainland Business Setups, a free zone company allows you to have complete ownership of your business without needing a local sponsor.
  • 100% Profit and Capital Repatriation: You can freely take all your profits and capital out of the country without any restrictions or currency controls.
  • No Corporate or Personal Income Tax: Businesses in free zones that meet the criteria for a “Qualifying Free Zone Person” can benefit from a 0% corporate tax rate on their qualifying income of AED 375,000, and 9% on profits exceeding that threshold. The criteria include:
    • Adequate economic substance (staff, office, operations)
    • Earning “qualifying income”, such as exports or inter–free zone services
    • Compliance with arm’s-length pricing, audited financials, and transfer pricing documentation
    • Not electing the standard tax regime
    • Staying within the “de minimis” limit on non-qualifying revenue (max AED 5 million or 5%)

There is no personal income tax.

  • No Import and Export Duties: This is a major advantage for trading, import, and export companies, as it significantly reduces operational costs.
  • Strategic Location and Global Connectivity: Sharjah’s central location between major ports and airports makes it a hub for logistics and trade. With close proximity to Sharjah International Airport (SAIF) and two major deep-sea ports (Hamriyah Port and Khorfakkan Port), businesses can easily connect with markets across the Middle East, Asia, and Africa.
  • Cost-Effective Solutions and Support: Sharjah is known for offering some of the most competitive Business Setup and operational costs in the UAE. From affordable license packages to flexible office solutions, free zones provide cost-effective entry points for new businesses and startups.

UAE Sharjah's Top Free Zones

Sharjah is home to several distinct free zones, each with its own specializations, advantages, and facilities. Choosing the right free zone depends on your business activity, budget, and long-term goals.

  • SAIF Zone (Sharjah Airport International Free Zone)

One of the oldest and most established free zones in the region, SAIF Zone is a hub for industrial, commercial, and logistics companies. Located next to Sharjah International Airport, it offers a strategic advantage for businesses involved in import, export, and trading. SAIF Zone is known for its world-class infrastructure, warehouses, and extensive office facilities.

  • Hamriyah Free Zone

As one of the largest industrial free zones in the UAE, Hamriyah Free Zone is ideal for companies in the manufacturing, oil and gas, maritime, and heavy industry sectors. It provides businesses with access to deepwater ports, ready-to-use land for development, and a wide range of industrial facilities.

  • Shams (Sharjah Media City Free Zone)

Shams is a modern and rapidly growing free zone focused on media, creative industries, and technology. It is a highly attractive option for freelancers, consultants, and startups due to its competitive pricing and simplified company formation process. Shams offers flexible desk options and a wide range of media-related business activities.

  • SPC (Sharjah Publishing City Free Zone)

SPC is the world’s first free zone dedicated to the publishing and creative industries. It caters to a wide range of activities, including printing, publishing, distribution, and e-commerce. SPC is a great choice for businesses looking for a simplified setup process and access to a niche community.

  • SRTIP (Sharjah Research, Technology, and Innovation Park)

SRTIP is a free zone focused on research, development, and innovation. It provides a supportive ecosystem for tech startups, researchers, and innovators. Located near major universities, SRTIP offers state-of-the-art facilities and a collaborative environment for R&D-intensive businesses.

Which Free Zone is Right for Your Business?

Finding the perfect Free Zone in Sharjah, UAE, often depends on multiple factors:

  • Activity: Your business activity is the most important factor. If you are in manufacturing, Hamriyah or the SAIF Zone are excellent choices. For media, IT, or creative services, Shams or SPC would be a better fit.
  • Cost: Some free zones, like Shams and SPC, are known for their highly competitive entry-level packages, which are perfect for startups and freelancers. More industrial-focused free zones may have higher costs due to larger facility requirements.
  • Facility: Decide about what you need: a simple flexi-desk for a freelance visa, a co-working space, a dedicated office, or a large warehouse and plot of land.

Types of Businesses You Can Set Up in Sharjah Free Zone

Sharjah Free Zones offer a wide range of license types to suit almost any business activity.

  • Commercial License: This license is for companies that buy and sell goods. It covers activities like trading, import, export, and distribution of a specific range of products.
  • Professional License: A professional license is for businesses that offer services, rather than products. This includes consultants, IT professionals, marketing agencies, creative professionals, and other service providers.
  • Industrial License: This license is required for businesses involved in the manufacturing, processing, or assembly of goods. It is typically sought by companies in the Hamriyah Free Zone or the SAIF Zone.
  • E-commerce License: With the rise of online business, many free zones, including Shams and SPC, offer dedicated e-commerce licenses for businesses that sell products or services online.
  • General Trading License: A General Trading license allows you to trade in a very wide variety of products, with a few restrictions. This is a flexible option for companies that plan to deal with a diverse range of goods.

Documents Required for Business Setup in Sharjah UAE

The documents required for a Business Setup in Sharjah are minimal and vary slightly depending on your chosen free zone and legal structure.

  • Passport Copies: Clear, color copies of the passports of all shareholders and the appointed manager.
  • Visa Copies: If you are a current UAE resident, a copy of your visa page and Emirates ID is required.
  • Application Forms: Completed and signed application forms provided by the respective free zone authority.
  • Business Plan: A brief business plan or project summary outlining your activities and goals.
  • No Objection Certificate (NOC): A NOC from your current sponsor is required if you are a UAE resident and will be a shareholder/manager.

For Corporate Shareholders (if the company is owned by another company):

  • Certificate of Incorporation and Memorandum of Association (MOA) of the parent company.
  • Board Resolution approving the establishment of the free zone company.
  • A Power of Attorney for the appointed manager.
  • All documents must be attested and legalized.

Cost of Setting Up a Business in Sharjah

The cost of setting up a business in Sharjah is a key factor for many entrepreneurs. While prices vary by free zone, license type, and facility, here is a general overview:

  • License Packages: Entry-level packages (including a license and flexi-desk) can start from as low as AED 6,000 to AED 12,000 in some free zones like Shams or SPC.
  • Visa Costs: Each visa slot will incur additional fees, including a visa application fee, medical test, and Emirates ID. These can range from AED 3,000 to AED 5,000 per visa.
  • Office/Facility Costs: A dedicated office space or warehouse will significantly increase the total cost, depending on its size and location.

It is crucial to get a full, transparent quote that includes all government and administrative fees to avoid any surprises.

How to Set Up a Company in Sharjah Free Zone?

The process for a company formation in a Sharjah free zone is designed to be fast and efficient. Here are the steps involved:

Step 1: Define Your Business Activity and Legal Structure

This is the most critical first step. You must decide on your exact business activities. Based on this, you will choose a legal structure:

  • Free Zone Establishment (FZE): For a single shareholder company.
  • Free Zone Company (FZC): For a company with two or more shareholders.
  • Branch Office: For a local or foreign company that wants to open a branch in the free zone.

Step 2: Choose Your Business Name

Select a unique name for your company that complies with the free zone’s naming conventions. The name should not be offensive and should not be similar to any existing companies.

Step 3: Select Your Office or Facility Type

Choose the facility that best suits your needs:

  • Flexi-Desk/Co-working Space: An affordable option for a startup or freelancer that requires minimal physical presence.
  • Dedicated Office: A private office for a growing team.
  • Warehouses/Industrial Plots: For manufacturing, logistics, and trading companies.

Step 4: Prepare and Submit Required Documents

Gather all the documents mentioned earlier and submit them to the free zone authority. This is often the most time-consuming part, and ensuring all documents are correct and complete is essential.

Step 5: Obtain Initial Approval

The free zone authority will review your application and documents. Once everything is in order, you will receive an initial approval to proceed.

Step 6: Pay Fees and Get Your Freezone Business Setup License in Sharjah

After approval, you will make the necessary payments for the license and any facility leases. The free zone will then issue your business license and Certificate of Incorporation.

Step 7: Open Your Corporate Bank Account

With your new company documents, you can now open a corporate bank account in a local or international bank in the UAE.

Step 8: Visa Processing for Yourself and Your Employees

Once your company is licensed, you can apply for entry permits and residence visas for yourself, your employees, and their dependents.

Ready to launch your business in Sharjah Free Zone?

Contact Safe Ledger now and let our experts guide you through every step, from choosing the right setup to securing your license.

Important Considerations for Your Sharjah Free Zone Company

A successful setup goes beyond just getting a license. These are some of the long-term considerations you need to be aware of.

  • Visa Quota and Employee Visas

The number of visas you can apply for is often tied to your chosen facility and license package. Larger offices or more expensive packages generally come with more visa slots.

  • Corporate Tax and VAT Registration in UAE

UAE introduced a 9% Corporate Tax in 2023. However, a “Qualifying Free Zone Person” can benefit from a 0% tax rate on their “Qualifying Income.” It’s important to understand the specific rules and ensure you meet the requirements. You must also register for VAT if your annual turnover exceeds AED 375,000.

  • Annual Renewals and Compliance

Your freezone business setup license in Sharjah must be renewed annually. The free zone authority will notify you of the renewal deadlines. Timely renewal and compliance with all free zone regulations are essential to keep your license active.

  • Accounting and Auditing Requirements

UAE law and free zone regulations require all companies to maintain proper books of accounts. Some free zones also require an annual audit report to be submitted at the time of renewal.

  • Bank Account Opening Challenges and Solutions

Opening a corporate bank account can sometimes be challenging, with banks requiring extensive documentation and background checks. Working with a Business Setup partner can streamline this process by guiding you through the requirements and introducing you to the right banking contacts.

The visa process involves medical tests, an Emirates ID application, and visa stamping.

Get expert help to launch your Dubai business

Frequently Asked Questions (FAQs)

Q-1. What are the main benefits of setting up in a Sharjah Free Zone?

Key benefits for forming a company in Sharjah Free Zone includes:

  • 100% foreign ownership,
  • No corporate or personal taxes on qualifying income,
  • Full profit repatriation, and
  • A strategic location with access to ports and airports.
Q-2. How long does it take to set up a company in a Sharjah Free Zone?

With all documents in order, license issuance can take just a few days. The complete process, including visa and bank account setup, may take a few weeks.

Q-3. What is the typical cost of Business Setup in a Sharjah Free Zone?

The starting cost for a license and flexi-desk package is around AED 6,000. Total costs depend on the number of visas, facilities, and added services.

Q-4. Can I own 100% of my company in a Sharjah Free Zone?

Yes, free zone companies in Sharjah allow 100% foreign ownership without needing a local partner.

Q-5. Do I need a physical office space in a Free Zone?

No, many free zones offer flexible workspace options like Flexi-Desks or co-working spaces that fulfill the physical presence requirement.

Q-6. Can a Free Zone company do business on the UAE mainland?

Yes, but with restrictions. To sell directly on the mainland, you must either appoint a local distributor or set up a mainland branch of your company.

Q-7. Are there any taxes in Sharjah Free Zones?

While there is no personal income tax, UAE corporate tax may apply. Qualifying Free Zone Persons can benefit from a 0% tax on qualifying income. VAT registration is mandatory if turnover exceeds AED 375,000.

Q-8. What documents are required to start a business in Sharjah Free Zone?

You’ll need a passport copy and a visa copy (if applicable). For corporate shareholders, parent company documents are also required.

Q-9. Can I get a visa for my family members if I set up a company?

Yes, once you obtain your own residence visa through the company, you can sponsor visas for your family members.

Q-10. Do I need to be a UAE resident to set up a Free Zone company?

No, you can start a Free Zone company without being a UAE resident. You can then apply for a residence visa through your new business.

Q-11. How can Safe Ledger help me with my Sharjah Free Zone Business Setup?

Safe Ledger offers expert guidance on the best Free Zone for your business, handles documentation, licensing, visa processing, and bank account opening—all with transparent pricing and dedicated support.

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