Sharjah has become a hub for investors and entrepreneurs. The Sharjah emirate prides itself on its enterprise of “minimizing bureaucracy.” This has been achieved through “Free Zones.” Sharjah’s industry has been divided into two broad categories: Free Zones and Mainland Areas.
What Are Free Zones And Mainland Areas?
Free Zones are special zones in Sharjah Emirate that are exempt from taxation and provide 100% ownership to businesses. There are also no import, export, re-export, or customs duties, making them highly business-friendly.
However, each Free Zone has its limits and benefits so it’s important to know about that particular area. Free Zones are not allowed to do business outside of their free zone area.
Unlike Free Zones, Mainland Areas belong to the government, which in turn, bears the responsibility of issuing business licenses to any Mainland LLC. They can freely do business with clients both in and outside the UAE.
Free Zones in Sharjah
Just like Dubai’s free zones, Sharjah boasts six Free Zones strategically positioned near key transport hubs, perfectly designed to meet the logistical demands of investors. The emirate takes pride in its streamlined bureaucracy, creating an exceptionally business-friendly atmosphere with enticing benefits like no corporate tax and no income tax.
Moreover, these zones eliminate import, export and re-export fees, along with customs duties, offering an unparalleled advantage for businesses seeking seamless operations and maximum profitability.
Let’s check them out:
Hamriyah Free Zone
Registering and setting up a business in the Hamriyah Free Zone Authority (HFZA) is exceptionally quick, taking less than an hour. As the UAE’s second-largest industrial free zone, HFZA is home to more than 6,500 businesses from 163 countries. Its central coastal location offers air, sea, and land access to both domestic and regional markets.
SAIF Zone
The Sharjah Airport Free Zone (SAIF) offers pre-built warehouses for small and medium-sized businesses and substantial space for larger multinationals to build their own facilities if desired. With on-site customs for rapid clearance of goods, the SAIF Zone hosts over 8,000 companies from 160 countries and has exceptional market access via Sharjah International Airport.
Shams
Sharjah Media City (Shams), launched in February 2017, acts as a catalyst for the growth and success of creative and media businesses. The zone is a world-class media hub offering innovative facilities and services.
Sharjah Research, Technology & Innovation Park
Established in 2016, the Sharjah Research Technology and Innovation Park (SRTIP) is a premier innovation ecosystem promoting Research and Development. It supports collaboration between industry, government, and academia, complementing University City and attracting leading innovation-focused SMEs, multinationals, and startups for R&D activities.
Sharjah Publishing City
Sharjah Publishing City Free Zone, a subsidiary of the Sharjah Book Authority, is the smarter, simpler, and faster choice for entrepreneurs and investors looking to set up their business in the UAE. It offers convenience and flexibility with over 1,500 business activities and various modern facilities, making it an ideal business setup platform.
Sharjah Healthcare City
Sharjah Healthcare City (SHCC) is a dedicated healthcare and wellness city, home to numerous hospitals and clinics. Welcoming R&D centers, laboratories, and rehabilitation facilities, SHCC is strategically located near Sharjah International Airport. It offers investors plots of land for constructing healthcare facilities and long-term leases for hospitals, clinics, and offices.
Sharjah Mainland Overview
Mainland companies are sponsored by UAE nationals and registered with the government. The Economic Development Department is responsible for issuing business licenses for mainland LLCs (Limited Liability Companies).
Additionally, mainland companies are not restricted to specific geographical locations, allowing them to serve clients throughout the UAE and internationally.
Sharjah Mainland encompasses the areas of Sharjah City that fall under the jurisdiction of the Sharjah Department of Economic Development (SEDD) for business licensing and registration. It serves as the commercial hub of Sharjah, offering numerous business opportunities to investors.
This offers businesses the advantage of accessing a larger market and expanding their operations more effectively.
Licensing and Registration
The SEDD is responsible for issuing trade licenses to all types of businesses operating within Sharjah Mainland. They have streamlined the licensing process to facilitate easier business registration for entrepreneurs, with the process varying based on the type of business activity and the company’s legal structure.
Regulatory Framework
The UAE Commercial Companies Law (CCL), a federal law governing all entities registered in Sharjah Mainland, has recently been amended to allow 100% foreign ownership. This significant change opens new investment opportunities for foreign investors, enabling them to own companies in Sharjah Mainland without needing a local sponsor.
FAQs
Each free zone in Sharjah offers different utilities to different kinds of businesses. For example, while the Sharjah Media City deals with everything related to media and promoting entrepreneurship, the Sharjah Healthcare City deals with the healthcare sector of Sharjah.
Both of them have their advantages and disadvantages. While mainland areas are registered under the government, they have no geographical limitations. Meanwhile, free zones are only allowed business within the free zone area. Free zones are also fully exempt from taxation and grant 100% ownership. What’s better is mostly dependent on the scope of the business itself.
Sharjah Free Zones and Mainland stand as a vibrant, bustling commercial epicenter, ripe with opportunities for businesses of all kinds. Operating here means unrestricted access to the entire UAE market, including both federal and local government contracts, amplifying your business’s potential for growth and success.
Whether you’re a budding entrepreneur with a groundbreaking idea or a seasoned business seeking to expand your horizons, Sharjah offers a fertile ground teeming with prospects. The combination of a supportive regulatory framework, a strategic location, and a business-friendly environment makes it an unparalleled destination for ambitious enterprises that are ready to soar.
