Sharjah’s industry has evolved to a great extent with its ever-growing free trade and industrial zones’ network. The emirate stands among the biggest manufacturing hubs in the UAE. Moreover, Sharjah hosts ports on the Indian Ocean and Persian Gulf coasts has added to its strategic significance. Another factor that contributes to the emirate’s popularity among investors is the low cost of setting up business, in contrast to Dubai and Abu Dhabi.
Investors enjoy the best incentives in their respective zones, for instance, tax exemptions, 100% foreign ownership and leasing option for a long period. Thus, when it comes to the free zones in Sharjah vs mainland, let’s discuss in detail about the areas and benefits of business setup in either of the two areas.
FREE ZONE VS MAINLAND IN SHARJAH
Before we discuss the respective areas, let’s take a brief look at what are mainland and free zone companies in Sharjah:
MAINLAND COMPANY IN SHARJAH
Mainland companies are sponsored by UAE nationals and registered with the government. The economic development department of the government body is responsible for issuing business licences for mainland LLCs (Limited Liability Company). Furthermore, mainland companies are not limited to certain geographical locations and can cater clients from across the UAE as well as other countries.
FREE ZONE COMPANY IN SHARJAH
The owners of Sharjah free zone companies enjoy 100% ownership, tax exemptions on imports and exports as well as high-end infrastructure. However, each free zone in Sharjah has separate limitations as well as benefits. So, before you opt for a free zone area read the entire governing rules of the particular area. But unlike the mainland, free zone companies are licenced to operate only within the free zone area.
WHY FREE ZONES IN SHARJAH ARE AMONG SUITABLE OPTIONS FOR COMPANY FORMATION?
Here are some major reasons that contribute to the popularity of free zones in Sharjah:
- The business setup packages are quite affordable
- Low labour wages
- Ample number of migrant skilled workers in the region
- Reasonable rental rates and living cost
- Easy access to Dubai’s business centres
- Low maintenance and operational cost
Besides, free zones in Sharjah are offering opportunities for business development and lead to entrepreneurs. With a proper ecosystem, free zones are grounded to drive more foreign investment.
Depending on the business/company formation requirements, one can also opt to buy a commercial property in Sharjah. However, it is worthwhile to note that only those who meet the set government set criteria can buy a commercial property in the Emirate.
BUSINESS REGULATIONS RELATED TO MAINLAND COMPANIES
Mainland companies with businesses in financial, real estate, commercial, industrial, agricultural and any other economic sector have to follow the UAE Federal Law No. 2 of 2015, which is applicable on commercial companies.
BUSINESS REGULATIONS RELATED TO FREE ZONE COMPANIES
Commercial business laws in the UAE are applicable on free zone businesses as well, other than Federal Law No.2 of 2015. Sharjah free zone companies are governed by free zone authorities of the specific area. Moreover, in different cases, free zone companies are also governed by one or more government authorities.
There are also certain laws to govern free zone businesses that depend on the type of the business operations. For instance, in the context of QHSE compliance and adherence to property rights.
FREE ZONE AREAS IN SHARJAH
Sharjah hosts five prime free zone areas that are listed here:
- Sharjah Media City
- Sharjah Airport International Free zone (SAIF)
- Hamriyah Free zone
- Sharjah Research Technology and Innovation Park
- Sharjah Publishing City
FREE ZONES IN SHARJAH FOR COMPANY FORMATION
SHARJAH MEDIA CITY FREE ZONE
Sharjah Media City (Shams) emerged as a free zone area in Sharjah in the year 2017. This zone mainly is a hub of media and creative businesses, fully equipped to cater for their needs. Moreover, Shams allows startups, SMEs and even well-established companies with diverse businesses to thrive here.
Sharjah Media City offers three types of Sharjah free zone licence: service licence, industrial licence and trading licence.
WHY SHOULD YOU SET UP A BUSINESS IN SHARJAH MEDIA CITY FREE ZONE?
One of the best things about Sharjah Media City is that it’s a few minutes drive from Sharjah International Airport and Dubai International Airport. Other key benefits are:
- No personal or corporate income tax
- Six visas on shared desk facility
- 100% complete foreign ownership of the company
- Under one business licence, you can perform various business activities
- Company documents are issued within short period of time
- The online registration process is easy and quick
- Companies in the area will have limited liability
Address: Sharjah Media City (Shams), Al Messaned, Al Bataeh, Sharjah
Contact Number: 800-74267
Timings: 8:00 am to 5:00 pm ( head office), Sunday to Thursday
HAMRIYAH FREE ZONE SHARJAH
Hamriyah Free Zone Authority is the second-largest industrial free zone in the UAE. Starting a business in Hamriyah Free Zone Sharjah takes just about an hour. Hamriyah offers commercial, industrial and service licences.
Since the zone is based between three continents, it gives you an opportunity to serve about 1.5 billion people in the adjacent markets.
Moreover, the companies in Hamriyah free zone include marine companies, food parks, oil and gas companies as well as banking and auditing companies, currency exchange offices and more.
Investors can easily find an e-office, industrial land, executive office, warehouse, conference rooms, staff accommodation, and other facilities suitable for their business and services.
WHY SHOULD YOU SET UP A BUSINESS IN HAMRIYAH FREE ZONE SHARJAH?
- There are more than 6,500 businesses having their origins in 163 countries
- Easy access to Hamriyah Port
- Major hub for oil and gas companies
- It is known to have the vast number of steel fabricators in the UAE
- World-class facilities for all types of businesses
- 11 million square feet Food Park to cater to food industry’s requirements
- Strategically located on the central coastal
- It is connected to six other emirates via major highways in Sharjah
- The zone offers direct access to Bahrain, Oman and other GCC markets
- Complete ownership of the company
- No custom duty, no import, export and re-import charges
- On-site accommodation for labours
- 24-hour security
- Lease renewable option for long and short term
- Cost-effective energy
Address: Hamriyah Free Zone Authority P.O. Box: 1377, Sharjah
Contact number: 0971-6526-3333
SHARJAH INTERNATIONAL AIRPORT FREE ZONE (SAIF Zone)
Established in 1995, Sharjah International Airport Free Zone (SAIF Zone) is the first ISO 9001 certified airport free zone. SAIF Zone offers trade, industrial and service licences with a guarantee of delivery within 1 hour.
Sharjah International Airport Free Zone is spotted near Sharjah International Airport, seaports as well as Abu Dhabi and Dubai airports. Therefore, connecting and trading with the global markets is convenient.
WHY SHOULD YOU SET UP A BUSINESS IN SHARJAH INTERNATIONAL AIRPORT FREE ZONE?
- State-of-the-art infrastructure tailored to your business needs
- More than 8000 companies in the zone from 160 countries
- No tax on import and export duties
- Corporate and personal income tax exemption
- Full ownership of the company
- Many plots of different sizes
- Onsite accommodation for workers in budget-friendly rates
- The zone also hosts banks, money exchanges, clinics and pharmacies
- Availability of telecom and computer services
- Immigration and custom offices are also established
Once you acquire a trade, industrial or service licence in SAIF Zone, you can check the list of offices for rent in SAIF Zone of Sharjah International Airport.
Address: Sharjah Airport International Free Zone Authority, PO Box 8000, Sharjah
Timings: 7:30 am to 2::30 pm, Sunday to Thursday
Contact number: 0971-6557-1111
SHARJAH PUBLISHING CITY FREE ZONE
Sharjah Publishing City is a hub of Paper, Printing, Distribution and Publishing, primarily. This free zone offers you an opportunity to run your business independently, along with tax-free privileges. Sharjah free zone licence commercial and service are offered by Sharjah Publishing City.
One is welcome to open a branch of their existing business, set up a new free zone business or get commercial leasing in Sharjah Publishing City Free Zone. Moreover, this Publishing City offers partner companies and investors facilities for Offset and Print, tailored as per their needs. They have furnished and unfurnished offices, storage facilities, retail, cafe and restaurants available for lease.
WHY SHOULD YOU SET UP A BUSINESS IN SHARJAH PUBLISHING CITY FREE ZONE?
- Complete ownership of the company to the expatriate
- Unlimited repatriation of funds
- None of the currencies are restricted
- No need to pay personal income and corporate taxes
- Companies are not liable to pay import and export taxes
- The zone offers residency, immigration and various government services
- Avail many services under one roof
- Opportunity for commercial leasing
- Situated at a strategic location
- Offers many office solutions
- Ultra-modern facilities to cater to businesses
Address: P.O. Box: 40085 Umm Al Tarafa, Arouba Street, Sharjah,
Contact number: 0971-800-77239
SHARJAH RESEARCH TECHNOLOGY AND INNOVATION PARK FREE ZONE
The Sharjah Research Technology & Innovation Park (SRTIP) is a free zone that promotes innovative ecosystem, research and development. Furthermore, SRTIP offers enterprise activities to thrive and supports the collaboration of academia, industry and government in one place.
Sharjah Research Technology and Innovation Park Free Zone offers company formation opportunities in the region. You can avail various options that include:
- Scientific package
- Women in Innovation package for female entrepreneurs
- First Step Hi-Tech Office, perfect for start-up businesses not more than three years old
- Maktabi (Co-working Space), you can choose your space and start working on your laptop
- Completely furnished Start-Up 16sqm office-
- Fully furnished SME offices in the main HQ
- Ecosystem office in the HQ fully furnished
- Innovation offices in the HQ open area space available for businesses to lease
- Innovation plot is available for lease, where retailers and developers can initiate their projects in SRTIP
WHY SHOULD YOU SET UP A BUSINESS IN SHARJAH RESEARCH TECHNOLOGY AND INNOVATION PARK?
Since SRTIP offers an array of office setups and packages, there are many benefits for investors and business owners. Here we have combined all the incentives to give you an idea:
- Innovation lounge is accessible at SRTIP
- Open invitation to attend professional networking events
- Several types of business support services
- You can connect with researchers and University City students
- Convenient access to regional, local and international markets
- Availability of furnished office with three desks
- 6 visas per office
- Private working area
- Meeting rooms
- Receptionist
- Free wifi
- 24/7 security
- On-site parking
- If you are going for Start-up office, you get designated desk, shared and furnished working space, 3 visas per desk
- SME Office: 8 vias, 6 to 8 desks
- Ecosystem office: Fitted office, fully furnished, 10+ visas per office, Private working area
- Innovation Plot: Competitive lease rates, Plot allocation within prime Sharjah Location, Visas included as per client needs
- Innovation Office: Fitted office, 10+ visas per office
Address: P.O. Box 66636 Sharjah
Contact number: 0971-6502-2000
MAINLAND COMPANY SETUP IN SHARJAH
Sharjah mainland licence is issued by the Sharjah Economic Development Department, which is also responsible for setting the guidelines for mainland company setup. When it’s about a mainland company setup in Sharjah, an LLC Company should be initiated.
There are many benefits, for instance, affordable lease and office rental, low wage labour, budget-friendly utility bills and energy and more.
Types of Mainland Companies in Sharjah
Other than LLC (Limited Liability Company), you can also setup:
- Partnership Company
- Foreign Company Branch
- Local/GCC Company Branch
- Public-Private Shareholding Company Registration
The government of Sharjah supports entrepreneurs and trades at every level. Given the fact, the Emirate after Dubai is driving a high rate of foreign investment. Most importantly, by the above discussion it is quite obvious that Sharjah is among the UAE emirates that promotes and offers opportunities for free zone companies.
We hope the rundown of free zone vs mainland in Sharjah will help you make a better decision. Besides, if you have made up your mind to set up a company in the Emirate, you can browse through the different rental commercial properties in Sharjah. You can choose to rent a property as per your business requirements, following the rules of operating a company or business in the Emirate.
Moreover, if you are new in the Emirate and interested to rent a residential property in Sharjah, make sure you go through the Sharjah Municipality Tenancy Laws and Rules.
Stay tuned to the top property blog of the UAE for more information on different laws and regulations related to property buying, selling and renting across all the Emirates.
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