Starting a business in the UAE has always been attractive for global investors. Among the many free zones, Hamriyah Free Zone (HFZ) in Sharjah is one of the most sought-after business hubs due to its strategic location, cost-effective setup packages, tax benefits, and global connectivity. For entrepreneurs and investors planning to enter the Middle Eastern market, Hamriyah Free Zone company formation offers unmatched advantages and flexibility.
This guide will cover everything you need to know—from benefits and types of licenses to step-by-step formation procedures, costs, and business solutions.
Why Choose Hamriyah Free Zone for Company Formation?
Hamriyah Free Zone is strategically located in Sharjah, close to Dubai, and connected to international airports and seaports. Investors choose HFZ because it provides full foreign ownership, zero corporate tax, and fast company registration. It also offers a wide range of office spaces, warehouses, and industrial plots for businesses of all sizes.
Key Benefits of Hamriyah Free Zone Business Setup
- 100% foreign ownership without the need for a UAE sponsor.
- Tax-free environment: no corporate or personal income tax.
- Repatriation of profits and capital with no restrictions.
- Strategic location near Sharjah’s ports and only 15 minutes from Dubai International Airport.
- Affordable company formation packages, starting from low-cost setups for SMEs to large-scale industrial options.
- Multiple license types catering to trading, services, and industrial sectors.
- World-class infrastructure, including warehousing, land plots, and office spaces.
- Visa eligibility for investors, shareholders, and employees.
- Fast business setup process completed within a few days.
Types of Business Licenses in Hamriyah Free Zone
When setting up a company in Hamriyah Free Zone, the first step is choosing the right business license based on your activity.
Commercial License
A commercial license allows businesses to import, export, distribute, and trade goods. Ideal for trading companies and global import/export businesses.
Industrial License
An industrial license is for companies engaged in manufacturing, packaging, and processing. HFZ provides industrial plots and facilities for manufacturing firms.
Service License
A service license is for businesses providing consultancy, IT, professional, or service-oriented activities. This is the best option for freelancers and service firms.
General Trading License
A general trading license allows businesses to trade in multiple categories of goods under one license, making it highly flexible for international traders.
Legal Structures Available in Hamriyah Free Zone
Investors can choose from different company structures when forming a company in HFZ:
Free Zone Establishment (FZE)
- A single shareholder entity (individual or corporate).
- Minimum capital requirements may apply depending on business activity.
Free Zone Company (FZC)
- A company with 2–5 shareholders.
- Offers flexibility for partnerships and joint ventures.
Branch Office
- A branch of an existing UAE or foreign company.
- Allows expansion without setting up a new legal entity.
Step-by-Step Process of Hamriyah Free Zone Company Formation
Setting up a business in HFZ is straightforward.
Step 1: Choose Your Business Activity
Select the right license (trading, industrial, service, or general trading) based on your intended operations.
Step 2: Select a Legal Structure
Decide between FZE, FZC, or branch office depending on ownership and business goals.
Step 3: Reserve Company Name
Submit a list of trade names for approval by the HFZ Authority. The name must comply with UAE naming guidelines.
Step 4: Submit Documents
- Passport copies of shareholders and directors
- Passport-size photos
- Application forms
- Business plan (for certain activities)
Step 5: Pay Fees and Sign Agreements
Once documents are approved, pay the license fees, sign lease agreements for office or warehouse, and receive the incorporation certificate.
Step 6: Receive License & Start Operations
HFZ issues the license within a few working days, allowing you to begin operations immediately.
Office and Facility Options in Hamriyah Free Zone
HFZ offers a variety of business facilities to suit startups, SMEs, and multinational corporations.
Flexi-Desk Offices
Affordable shared office solutions for startups and consultants.
Executive Offices
Private offices with modern infrastructure, ideal for growing companies.
Warehouses
Ready-to-use warehouses for trading and logistics companies.
Industrial Land Plots
Customizable plots available for large-scale industrial operations.
Cost of Hamriyah Free Zone Company Formation
The cost of setting up a company in HFZ depends on the license type, number of visas required, and facilities chosen.
- Basic Package (Flexi-Desk, 1 visa): starts from around $3,000–$4,000 annually.
- General Trading License: slightly higher, depending on activity.
- Warehousing/Industrial Setup: custom pricing based on land and facility needs.
HFZ is among the most cost-effective free zones in the UAE, making it popular with startups and SMEs.
Visas and Residency in Hamriyah Free Zone
Setting up a company in HFZ provides eligibility for UAE residence visas.
- Investor Visa: For company owners and shareholders.
- Employee Visa: For staff, based on office space size.
- Family Sponsorship: Investors can sponsor dependents (spouse, children, parents).
Bank Account Opening for Hamriyah Free Zone Companies
After incorporation, businesses can open a corporate bank account in the UAE. Required documents include company license, shareholder documents, and incorporation certificate. HFZ companies can access local and international banks operating in Dubai and Sharjah.
Industries That Thrive in Hamriyah Free Zone
HFZ supports a wide variety of industries due to its infrastructure:
- Oil and gas trading
- Petrochemicals and plastics
- Marine and shipbuilding
- Food and beverage
- Textiles and garments
- Steel and construction
- Logistics and warehousing
Advantages of Hamriyah Free Zone vs Other Free Zones
- Lower setup costs compared to Dubai free zones.
- Strategic Sharjah location near major transport hubs.
- Large industrial plots for heavy industries.
- Simplified visa and licensing procedures.
- No restrictions on capital repatriation.
Challenges and Solutions for Investors in Hamriyah Free Zone
Investors in Hamriyah Free Zone may face hurdles like selecting the right license, banking delays, or navigating legal procedures. The solution lies in working with expert consultants, using HFZ’s flexible infrastructure, and leveraging professional legal and banking support to ensure smooth company formation and long-term growth.
Choosing the Right License
Solution: Consult with HFZ business advisors to ensure compliance.
Bank Account Delays
Solution: Work with experienced business consultants who have strong banking ties.
Understanding Local Laws
Solution: Hire local legal advisors for regulatory guidance.
Scaling Business Operations
Solution: Use HFZ’s scalable office, warehouse, and industrial solutions.
Conclusion
Forming a business in Hamriyah Free Zone provides global entrepreneurs with a cost-effective, strategic, and flexible platform for entering the Middle Eastern market. With 100% ownership, tax exemptions, and world-class infrastructure, HFZ is one of the most business-friendly destinations in the UAE. For business owners, this free zone offers tailored solutions for startups, SMEs, and multinational firms alike.
If you’re planning to establish your company in the UAE, Freezone Company Formation in Dubai, UAE remains one of the best routes to long-term growth and success.
FAQs
How long does it take to set up a company in Hamriyah Free Zone?
It usually takes 2–5 working days, depending on documentation and approvals.
Can I own 100% of my company in HFZ?
Yes, Hamriyah Free Zone allows full foreign ownership without a local sponsor.
Do I need a physical office to start?
Flexi-desk and shared office packages are available, so a large office is not required.
Can I sponsor my family with a Hamriyah Free Zone visa?
Yes, investors can sponsor their spouse, children, and parents.
Is Hamriyah Free Zone cheaper than Dubai free zones?
Yes, HFZ is among the most cost-effective options, especially for SMEs and startups.
Can I trade internationally with an HFZ license?
Yes, Hamriyah Free Zone companies can import/export globally.
What industries are best suited for HFZ?
Oil and gas, manufacturing, trading, and logistics companies benefit most.
Can I convert an FZE into an FZC later?
Yes, HFZ allows restructuring of company legal entities.
Is VAT applicable in Hamriyah Free Zone?
Yes, UAE VAT (5%) applies to certain transactions, but HFZ provides exemptions for export activities.
Can I open a bank account easily after setup?
Yes, once your company is licensed, banks in Sharjah and Dubai accept HFZ companies.
