Company Formation in Hamriyah Free Zone Authority (HFZA)
Hamriyah Free Zone Authority, known as HFZA, is one of the most attractive business destinations in the United Arab Emirates. Established in 1995 in the Emirate of Sharjah, this free zone provides a unique platform for global investors. Its strategic location at the intersection of international trade routes connects the Middle East with Africa, Asia, and Europe. HFZA offers simple company formation processes, low costs, and flexible options for entrepreneurs, making it one of the most business-friendly zones in the region.
Over the years, HFZA has built a strong reputation for supporting startups and large corporations across manufacturing, logistics, services, and trade. The zone operates as a complete business hub with access to Sharjah’s advanced seaports, highways, and airports. Its business environment combines world-class infrastructure with supportive laws, positioning it as a vital part of the UAE’s diversified economy.
The minimum share capital to start a business in HFZA typically begins at AED 150,000, depending on the company structure and type of activity, such as Free Zone Establishment (FZE), Free Zone Company (FZC), or Branch.
Why Choose Hamriyah Free Zone for Company Setup?
Entrepreneurs choose HFZA because it provides many advantages that simplify company formation and business operations. Below are the most valuable reasons that make HFZA stand out among the UAE’s free zones.
1. Full Ownership and Control
HFZA allows 100% foreign ownership. Investors can manage their operations independently without needing a local partner. This freedom ensures full control over decision-making and profits.
2. Complete Tax Exemption
Businesses in HFZA enjoy a tax-free environment, which means no corporate tax, no personal income tax, and no import or export duties. It helps businesses retain higher profits and reinvest more into their growth.
3. Strategic Location Advantage
Located near Sharjah’s seaports and airports, HFZA provides easy access to local, regional, and global markets. Its location supports quick transportation and trade logistics.
4. Advanced Infrastructure
HFZA features modern warehouses, ready-to-use office units, and industrial plots equipped with power, water, and high-speed connectivity. The facilities suit industries of all sizes.
5. Flexible Company Setup Options
The authority supports various legal structures and licenses to match your business needs. Whether you’re launching a startup or expanding a multinational branch, HFZA has a structure that fits perfectly.
6. Long-Term Lease Options
Companies can sign land leases for up to 25 years, renewable upon approval. This long-term commitment reflects the stability and investor confidence in the zone.
7. Skilled Workforce Access
Sharjah offers access to skilled and semi-skilled workers from across the region. Businesses benefit from lower labor costs and strong professional talent.
Types of Licenses Available in HFZA
HFZA issues three main categories of licenses, covering all types of commercial and industrial operations.
1. Industrial License
An Industrial License allows companies to manufacture, assemble, and process goods within the free zone. This license suits firms involved in:
- Production or processing industries
- Assembly and packaging plants
- Fabrication and engineering works
2. Commercial License
The Commercial License authorizes companies to import, export, store, and distribute products. This license is ideal for businesses involved in:
- General trading activities
- Wholesale and retail distribution
- E-commerce operations
3. Service License
A Service License is meant for companies providing professional services rather than goods. Common examples include:
- Business consultancy and management services
- IT and software development
- Engineering, auditing, and legal consultancy
Each license ensures compliance with HFZA’s rules while allowing businesses to operate across local and international markets.
Legal Structures for Company Formation in HFZA
When setting up your company in HFZA, you can choose from the following three legal structures:
- Free Zone Establishment (FZE): A single-shareholder entity ideal for small businesses or sole investors.
- Free Zone Company (FZC): A multi-shareholder company for partnerships with two to five investors.
- Branch of a Local or Foreign Company: Allows an existing company to expand its operations into HFZA without creating a separate legal entity.
Each structure provides flexibility, legal protection, and full access to HFZA’s benefits.
Step-by-Step Guide to Company Formation in HFZA
Forming a company in HFZA is a clear and well-organized process. Below are the essential steps:
1. Choose Business Activity and Legal Structure
First, identify your business activity and select the suitable structure — FZE, FZC, or Branch — according to your ownership requirements.
2. Submit Application and Documents
Complete the HFZA application form and provide the required documentation, including:
- Passport copies of shareholders and directors
- Proof of address
- UAE visa (if applicable)
- Business plan and NOC (if required)
3. Obtain Initial Approval
HFZA’s review team checks your application for compliance. Once approved, you receive a preliminary confirmation to proceed.
4. Sign Lease Agreement and Allocate Facilities
After initial approval, you’ll select your preferred office, warehouse, or industrial plot. HFZA offers various lease options with renewable contracts up to 25 years.
5. Receive License and Certificate of Incorporation
Once the documents are verified and fees are paid, HFZA issues your trade license, incorporation certificate, and establishment card — officially registering your company.
Documents Required for HFZA Business Registration
To complete company registration in Hamriyah Free Zone, you’ll need to submit these key documents:
- Passport copies of shareholders and directors
- Proof of address (utility bill or tenancy contract)
- UAE visa copies, if applicable
- Business plan explaining goals and operations
- No-Objection Certificate (NOC) from sponsor (for UAE residents)
- Memorandum and Articles of Association (MOA/AOA)
Submitting accurate and verified documents ensures a smooth approval process.
Compliance and Regulatory Responsibilities
Every HFZA company must comply with UAE’s legal and administrative frameworks. Below are the main obligations:
1. Adherence to HFZA Policies
Businesses must follow HFZA’s operational, health, and environmental safety guidelines.
2. Annual License Renewal
All licenses are valid for one year and must be renewed annually by submitting updated documents and paying renewal fees.
3. Accounting and Audit Reports
Companies must maintain proper financial records and submit annual audits from certified firms such as Mubarak Al Ketbi (MAK) Auditing to remain compliant.
4. Compliance with ESR, UBO & AML Laws
Entities conducting “Relevant Activities” must file Economic Substance Reports (ESR). Businesses must also maintain Ultimate Beneficial Owner (UBO) registers and comply with Anti-Money Laundering (AML) rules.
Compliance builds trust and ensures the long-term credibility of your business in the UAE.
Infrastructure and Facilities in HFZA
Hamriyah Free Zone provides exceptional facilities for various industries.
Main infrastructure features include:
- Industrial land plots for heavy and light manufacturing
- Pre-built warehouses and storage units
- Modern offices for SMEs and startups
- Executive suites and conference rooms
- Worker accommodations and logistic support
- Efficient power and utility services
HFZA’s well-connected infrastructure makes it ideal for industries like steel, oil & gas, food processing, shipping, and logistics.
Benefits of Setting Up a Company in HFZA
Starting a business in Hamriyah Free Zone offers both local and international advantages.
Key benefits include:
- Quick business setup and easy registration process
- No restriction on capital repatriation
- 100% import and export tax exemption
- Access to dual ports (Sharjah and Hamriyah)
- Lower operational and warehouse costs
- Support from government and free zone authorities
With these benefits, investors enjoy full operational freedom in a stable and secure environment.
Business Sectors in Hamriyah Free Zone
HFZA welcomes a wide range of industries. Some of the most popular sectors include:
- Oil and gas services
- Marine and ship building
- Steel and heavy industries
- Construction materials
- Food processing and packaging
- Logistics and warehousing
- Consultancy and service firms
This diversity makes HFZA one of the most dynamic and multi-sectoral zones in the UAE.
Why Choose Mubarak Al Ketbi (MAK) Auditing for HFZA Company Setup?
Setting up a business in HFZA involves documentation, compliance, and coordination with authorities. Mubarak Al Ketbi (MAK) Auditing simplifies the entire process for you.
Our professional consultants assist with:
- Business activity selection and license categorization
- Document preparation and verification
- Coordination with HFZA for approvals
- Accounting, auditing, and compliance setup
- Corporate tax and VAT advisory services
We ensure that your business foundation remains legally strong and financially stable.
What Mubarak Al Ketbi (MAK) Auditing Can Help With
At Mubarak Al Ketbi (MAK) Auditing, we provide complete support for your HFZA setup journey.
Our core services include:
- Company registration and licensing
- Lease agreement assistance and office selection
- Corporate tax and VAT compliance guidance
- Bookkeeping and financial audit services
- ESR, AML, and UBO documentation
- Business bank account setup and renewal support
Contact Details
- Address: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
- Geo Coordinates: 25.2807189480206, 55.41846458517048
