Sharjah Free Zones: A Hub for Business Growth and Innovation Growth and Innovation

Sharjah, the third-largest emirate in the United Arab Emirates (UAE), is home to some of the fastest-growing free zones in the region. These free zones offer a conducive business environment for businesses of all sizes, from startups and SMEs to multinational corporations. With world-class infrastructure, excellent connectivity to major trading hubs, a tax-free business environment, affordable rental schemes, and cost-effective business setup packages, Sharjah’s free zones are an ideal location for business setup.

A Diverse Range of Business Opportunities

While Sharjah is known as an industrial powerhouse, its free zones offer a diverse range of business activities beyond manufacturing and logistics. These include media, entertainment, consultancy services, e-commerce, and many other lucrative activities. Setting up a company in Sharjah Free Zones is straightforward and flexible, and business setup consultants in Sharjah can assist foreign investors in expediting the license approval process.

Licensing Options in Sharjah Free Zones

Before starting a business in Sharjah’s free zones, foreign investors need to decide on the business activities they wish to undertake. Each free zone offers unique licenses that cater to some of the most lucrative business activities in the UAE. Here are some of the most common business licenses available in Sharjah’s free zones:

A trading license permits the license holder to import, export, sell, distribute, and store goods specified on the business license. All free zones in Sharjah offer a trading license for foreign investors.
A general trading license allows license holders to trade in an unlimited number of goods. Unlike a normal trading license, a general trading license authorises the trading of dissimilar goods.
An e-commerce license authorises business owners to trade goods or services over an electronic platform. This license is highly sought-after due to the rise of e-commerce as a key sector in the region.
A service license permits the holder to carry out professional services activities, such as consultancies and accounting services.
An industrial license permits the holders to import raw materials for manufacturing, processing, and/or assembling specified goods. It also allows the packaging and export of finished products.

Legal Structures in Sharjah Free Zones

Determining a legal structure or form is a crucial step in setting up a company in Sharjah Free Zones. The legal form represents the legal status of the company, which can be determined based on the number of shareholders. Sharjah’s free zones recognise the following types of legal entities:

Free Zone Establishment (FZE)

An FZE can be incorporated with a single shareholder, which can be either an individual or a corporate entity. An FZE has a distinct legal identity and independent financial liability.

Free Zone Company (FZC)

An FZC is a Limited Liability Company (LLC) owned by more than one shareholder. An FZC has a distinct legal identity and independent financial liability.

Branch Company

Foreign companies and companies incorporated within the UAE can open their branch offices within any of the Sharjah Free Zones. A branch office doesn’t have an independent identity and its legal status is dependent upon its parent entity.

Setting Up a Business in Sharjah Free Zones

The process of company registration in Sharjah Free Zones is simple and flexible. It involves selecting a business activity, determining an appropriate legal form, reserving a company name, choosing a facility/office space, receiving the trade license, applying for a visa, and opening a corporate bank account.

Benefits of Business Setup in Sharjah Free Zones

Setting up a company in Sharjah’s free zones offers a wide range of benefits, including 100% foreign ownership, zero corporate tax and personal income tax, exemption from customsduties, 100% repatriation of profits and capital, quick and easy incorporation, world-class facilities, one-stop solution for all services, proximity to airport and seaport, and excellent connectivity through land, sea, and air.

Sharjah

Regulatory Compliance in Sharjah Free Zones

Companies operating in Sharjah Free Zones must comply with regulatory requirements such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulations (ESR), and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Non-compliance can lead to severe penalties, including suspension of trade license and information exchange with foreign competent authorities. It is advisable to seek assistance from business setup consultants in Sharjah to ensure compliance and avoid penalties.

Sharjah's Free Zones

Sharjah’s free zones contribute significantly to the UAE’s economy. Their strategic location and unique licenses make them attractive to foreign investors. Some of the active free zones in Sharjah include:

Need Assistance?

PW offers comprehensive services covering essential requirements such as visa processing, document drafting, government liaising, bank account opening, and more. Our team of business setup consultants, PRO service executives, and compliance advisers ensures a hassle-free company incorporation process in Abu Dhabi Free Zones

Umair Ahmad

Company Formation Specialist
  • +971 56 403 8600
  • info@privatewolf.ae
  • 06, 11B Happiness Street, CityWalk, Dubai
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