Establishing a company in the Sharjah Free Zone is a strategic step for many investors and entrepreneurs wishing to enter the UAE market. This free zone is distinguished by its strategic geographical location near the port of Sharjah and Sharjah International Airport, which facilitates access to local and regional markets. In addition, the Sharjah Free Zone offers multiple advantages such as full tax exemption on profits and personal income, and full ownership for foreigners without the need for a local partner, making it an ideal environment for establishing small and medium-sized enterprises as well as large companies. These factors help attract foreign investment and promote economic growth in the emirate, making the Sharjah Free Zone a preferred destination for establishing businesses and expanding trade and investment. Through this article, we will review some details about establishing a company in the Sharjah Free Zone.

Steps to establish a company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone requires following a set of basic steps that ensure compliance with local laws and procedures. The following are the main steps for establishing a company in this zone:

Determine the business activity: The first step is to determine the type of business activity you want to practice, whether it is trade, manufacturing, services, or other. This will help in choosing the appropriate license.
Choosing the legal form of the company: The appropriate legal form for the company must be determined, such as a limited liability company (LLC) or a branch of a foreign company. The legal form varies according to the size of the business and the type of activity.

Submitting the application: Submitting the application to establish the company to the Sharjah Free Zone Authority, which includes filling out the application form and submitting the required documents such as passports and business plans.

Obtaining approvals: After submitting the application, you may need to obtain initial approvals from the competent authorities in the free zone.

Signing contracts: Once initial approval is obtained, a lease contract is signed for the office or space required for the company within the free zone.

Issuing a commercial license: After fulfilling all requirements, a commercial license is issued that allows you to start working legally.

Opening a bank account: A bank account must be opened for the company within the Emirates to manage financial operations.

Obtaining visas: If you need employees, you can apply for residence visas for them through the free zone administration.
These steps help ensure that your company is successfully established in the Sharjah Free Zone, while benefiting from the many advantages it offers.

Documents required to establish a company in the free zone

To establish a company in the Sharjah Free Zone, a set of official papers and documents must be submitted to ensure compliance with legal and administrative requirements. The required documents usually include the following:

Passport copy: A clear copy of the passport for each of the partners, shareholders and managers of the company.
Personal photographs: Recent passport-sized photographs of all parties involved.
Registration application form: Fill out and submit the Sharjah Free Zone Company Registration Application Form.
Business plan: In some cases, a business plan may be required to be submitted that explains the nature of the business activity and the objectives of the company.
Memorandum of Association and Articles of Association: If the company is a branch of an existing company or a limited liability company, the Memorandum of Association and Articles of Association of the company must be submitted.
Board of Directors Resolution: If the company is a branch of a foreign or local company, a resolution from the board of directors of the parent company must be submitted to establish a branch in the Sharjah Free Zone, specifying the appointment of a manager for the company.
No Objection Certificate: If the partners or managers are already working in the UAE, a No Objection Certificate from the current employer may be required.
Capital Details: Submit documents detailing the capital allocated to the company if required.

Lease Contract: After obtaining initial approval, a lease contract for an office or warehouse within the free zone must be submitted.

Completing these papers and documents accurately facilitates the process of establishing a company in the Sharjah Free Zone, and contributes to accelerating the process of obtaining the required license.

Cost Factors for Establishing a Company in the Free Zone

Establishing a company in the Sharjah Free Zone requires taking into account many factors that affect the total cost. These costs vary based on the type of business activity, the size of the company, and the required facilities. Here are the most important factors that affect the cost of establishing a company in the Sharjah Free Zone:

Type of Commercial License: The cost of a commercial license depends on the type of activity that will be practiced, whether commercial, industrial, or service. The license fees vary according to this type, and are considered one of the main factors in determining the total cost.

Office Space or Warehouse: The cost of renting offices or warehouses varies based on the size of the required space and its location within the free zone. The cost of industrial or storage spaces can be higher than regular commercial offices.
Number of visas required: The cost of residence visas depends on the number of employees to be employed by the company, in addition to visas for investors and partners.
Capital: In some cases, the free zone may require a specific capital for the company as part of the requirements. This amount varies depending on the type of company and its activity.
Administrative fees: These include registration fees, application fees, and necessary approvals from the relevant authorities. These fees vary depending on the size of the company and the type of activity.
Additional services: There may be additional costs for services provided by the free zone, such as express incorporation services, administrative facilities, or legal services.
Insurance: These include the cost of insurance for workers and property, and are required to ensure compliance with local regulations.
Legal and advisory procedures: In some cases, you may need legal advice or specialized services to properly establish the company, which adds to the cost.
Facilities and equipment: Any additional equipment the company needs such as technology, equipment, or logistics may increase the total cost.
These factors determine the final cost of establishing the company, so it is important to plan well and review all requirements and options available to obtain accurate costs before starting the process.

Advantages of establishing a company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone offers many advantages that make it a preferred destination for investors and entrepreneurs from all over the world. Here are the most prominent advantages:

Full foreign ownership: Foreign investors can own 100% of the company without the need for a local partner, giving them complete control over their business.
Tax exemption: Companies in the free zone enjoy complete exemption from corporate and individual income tax, in addition to not imposing any tax on profits or commercial transactions.
Freedom of transfer of funds: The Sharjah Free Zone provides complete freedom to transfer profits and capital outside the country without any restrictions, ensuring flexibility in international financial operations.
Ease of procedures: The procedures for establishing companies in the free zone are simple and fast compared to other regions, which helps in starting businesses quickly and efficiently.
Strategic location: The Sharjah Free Zone is located near Sharjah Port and Sharjah International Airport, which facilitates import and export operations and access to local and international markets.
Visa Facilitation: The free zone provides easy access to residence visas for investors and employees, making it easy to expand business and attract talent.
Warehouse and Office Facilities: The free zone offers multiple options for commercial and industrial spaces, including state-of-the-art warehouses and offices.
No Currency Restrictions: There are no restrictions on currency trading, making international financial transactions easy.
Advanced Infrastructure: The free zone provides advanced infrastructure that supports various types of businesses, from small businesses to large industrial companies.
These advantages make establishing a company in the Sharjah Free Zone a profitable and suitable option for local and international investment.

Types of Companies in Sharjah Free Zone

Sharjah Free Zone offers several types of companies that can be established to meet the needs of investors and entrepreneurs of different sizes and activities. These types provide flexibility in options based on the business activity and size of the company. The following are the main types of companies that can be established in Sharjah Free Zone:

Limited Liability Company (FZ-LLC)
Can be wholly owned by individuals or companies. It is characterized by providing limited protection to the company’s officials so that their liability is limited to the invested capital. It can be established with one or more shareholders, and is ideal for small and medium-sized companies.

Branch of a Local Company
Local UAE companies can open a branch in Sharjah Free Zone. The branch is considered an extension of the parent company and is subject to the same activities that the parent company practices in the UAE.

Branch of a Foreign Company
International companies operating outside the UAE can open a branch in the free zone.
The branch enjoys all the facilities and benefits provided to companies operating in the free zone, but it is legally linked to the parent company and must practice the same business activities.

Free Zone Establishment (FZE)
It is established with only one owner (individual or legal entity). A free enterprise gives the owner complete control over the company and is an ideal option for individuals who wish to establish their business separately.

Private Joint Stock Company
This type of company has multiple shareholders and is suitable for large companies or joint ventures that require multiple investors. The capital and number of shares are determined based on the type of activity and size of the company. These types of companies give investors the freedom to choose the model that best suits their needs and the nature of their business, while ensuring that they enjoy the benefits offered by the Sharjah Free Zone, such as tax exemptions and full foreign ownership.

In conclusion, establishing a company in the Sharjah Free Zone is a strategic move for investors seeking to benefit from a flexible and growth-friendly business environment. Thanks to the available facilities, such as full foreign ownership, tax exemptions, and advanced infrastructure, companies can thrive in this attractive investment environment. With the services of specialized companies such as Itqan, investors can receive comprehensive support at every stage of establishing their company, ensuring a strong and smooth launch for their business in the UAE and global markets.

Frequently Asked Questions about Establishing a Company in the Free Zone

What types of companies can be established in the Sharjah Free Zone?
Companies can be established as a Limited Liability Company (FZ-LLC), a Free Zone Establishment (FZE), a branch of a local company, or a branch of a foreign company.

How long does it take to establish a company in the Sharjah Free Zone?
The process of establishing a company usually takes from one to several weeks, depending on the type of activity and completion of the required documents.

What are the advantages of establishing a company in the Sharjah Free Zone?
The advantages include tax exemptions, freedom to transfer profits, flexibility in employment, advanced infrastructure, and full foreign ownership.