Establishing a company in the Sharjah Free Zone

Sharjah Free Zone is one of the most prominent commercial and investment destinations in the United Arab Emirates. It provides an ideal environment for startups and investors seeking to benefit from advanced infrastructure and integrated services that meet their needs. Establishing a company in the Sharjah Free Zone gives companies many competitive advantages, including tax exemptions, full foreign ownership, and ease of procedures. In this article, we will review the many benefits of establishing a company in the Sharjah Free Zone, in addition to the steps needed to achieve this, and the types of companies that can be created. Whether you are a new investor or a company owner looking for expansion, you will find in this guide everything you need to know to achieve the success of your project in this thriving economic environment.

Establishing a company in the Sharjah Free Zone

Benefits of establishing a company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone offers many benefits that make it an attractive option for investors and entrepreneurs. These benefits include tax exemptions, full foreign ownership, and ease of procedures. We’ll go over each of these benefits in more detail:

• Tax exemptions

One of the most prominent benefits offered by Sharjah Free Zone is tax exemptions. Companies registered in the free zone receive full exemption from taxes on income and profits for up to 50 years, with the possibility of extension. This means that companies do not need to pay VAT or corporate tax, which significantly reduces operational costs and increases profitability.

• Complete foreign ownership

Another important feature is allowing 100% foreign ownership. In many countries, foreign investors may be required to enter into partnerships with local citizens, which may limit full control over the business. In the Sharjah Free Zone, foreign investors can establish and fully own their companies without the need for a local partner, giving them greater freedom and flexibility in making business decisions.

• Ease of procedures

The process of establishing a company in the Sharjah Free Zone is characterized by ease and speed. The free zone offers simplified and efficient company registration procedures, as the incorporation process can be completed within a few days. These procedures include submitting the required documents and paying fees, and investors can benefit from the support and assistance provided by the relevant authorities in the free zone. This reduces bureaucracy and allows investors to focus on growing their business quickly and efficiently.

Steps necessary to establish a company in Sharjah

Establishing a company in the Sharjah Free Zone requires following a set of organized steps to ensure that the process runs smoothly and is compatible with local regulations. In this section, we will review the main steps that must be followed to achieve this goal.

Choose the type of license

The first step in the company establishment process is to choose the type of license that suits your business. The Sharjah Free Zone offers several types of commercial licenses, including commercial, industrial, and service licenses. The choice of license depends on the nature of the business you intend to carry out. Investors should study the requirements for each type of license and ensure they are compatible with their objectives.

Submit the required documents

After choosing the appropriate type of license, a set of required documents must be submitted to the free zone authorities. These documents usually include:

• Company establishment application form: The application form must be filled out with accurate information about the company and its activity.
• Copies of passports: All partners and shareholders must submit copies of their passports.
• Business Plan: Submit a detailed business plan that explains the company’s vision and goals.
• Articles of Association: If the company includes more than one partner, an Articles of Association must be submitted explaining the foundations of the partnership.

It is necessary to ensure that all documents submitted are correct and complete to avoid any delays in the incorporation process.

Payment of fees

The process of establishing a company requires paying a number of fees, including registration fees, licensing fees, and office or commercial space rental fees. These fees vary depending on the type of license and the area required. Details of the fees can be found through the free zone’s official website or by visiting their offices.

After paying the fees and submitting the documents, the free zone authorities review the applications and ensure that they comply with legal requirements. Upon approval, the business license is issued, and the company can start conducting its business legally.

Types of companies that can be established in Sharjah

When considering establishing a company in the Sharjah Free Zone, it is important to know the different types of companies that can be established there. This diversity comes to meet the needs of foreign and local investors and provide flexible options that suit various commercial and industrial activities. The following are the most prominent types of companies that can be established in the Sharjah Free Zone:

• Free Zone Limited Liability Company (FZ-LLC)

A free zone limited liability company is the ideal choice for many investors due to the flexibility it provides. This company can be wholly owned by a single individual or a group of individuals or companies. This type of company allows investors to benefit from a legal structure that protects them from personal liabilities, as their liability is limited to the amount of capital invested in the company. This type is also characterized by ease of procedures and speed of establishment.

• Free Zone Enterprise (FZE)

A free zone establishment is the most suitable option for individuals who wish to establish a company wholly owned by one person. This type of company has the same advantages as a free zone limited liability company in terms of legal protection and flexibility in managing the business. Establishing a free zone enterprise requires submitting a set of simple documents and paying the required fees, making it an attractive option for aspiring entrepreneurs.

• Branch Office

If you have an existing company outside the UAE and want to expand your business to the Sharjah Free Zone, establishing a subsidiary is the ideal option. A subsidiary allows you to carry out full business activities without having to completely establish a new legal entity. The subsidiary can benefit from the reputation, resources and accumulated experience of the parent company, which facilitates the expansion process and enhances the chances of success in the local and regional market.

In conclusion, establishing a company in the Sharjah Free Zone is a strategic choice for many investors and entrepreneurs seeking to take advantage of the unique advantages that this region offers. From tax exemptions and full foreign ownership to ease of procedures and advanced infrastructure, the free zone provides an ideal environment for business growth and prosperity.

By carefully following the necessary steps and choosing the appropriate type of license for your business, you can establish your company smoothly and benefit from promising opportunities in the UAE and international market. Whether you are considering setting up a free zone limited liability company, a free zone enterprise, or even a subsidiary, the options available meet various business needs and ambitions.

If you are thinking about expanding your business or starting a new project, Sharjah Free Zone offers you everything you need to succeed. Take advantage of the available opportunities and begin your journey towards a bright and prosperous commercial future in one of the most prominent free zones in the region.

The most important frequently asked questions about establishing a company in the Sharjah Free Zone