Sharjah is slowly gaining traction among investors and entrepreneurs all over the world. This emirate is the third largest emirate in the UAE and is considered as the cultural capital of UAE. The emirate contributes over 7.5% of the Gross Domestic Product of the UAE. Sharjah is linked to various countries and locations via a vast network of roadways, seaports and airways making it one of the best Emirates for business incorporation. It is also known for its fair and just judicial system and a low crime rate.
Any foreigner who comes to Sharjah with the dreams of setting up a company has to decide whether he wants to set up a mainland company or a company in the free zones of the UAE. Both have their own sets of advantages. In this blog, we will discuss what the benefits are and how to setup up a company in the free zones of Sharjah.
Free Zones in Sharjah
The free zones of Sharjah attract entrepreneurs and people in business from all over the world. The free zone provides various advantages to an entity such as friendly economic policies, friendly rules and regulations, world-class infrastructure and cost-effective investment options. There are five free zones in Sharjah between which an entrepreneur can choose where to set up the business. These five free zones are:
1.Hamriyah Free Zone (HFZA)
Hamriyah Free Zone was set up in the year 1995, and it is suitable for Small and Medium Enterprises (SMEs). This free zone offers smooth connectivity via a network of roadways, airways and seaways. The free zone gives stress on flexibility, dynamism and investment.
2.Sharjah Airport International Free Zone (SAIF Zone)
The Sharjah Airport International Free Zone or SAIF-Zone is vast and is home to around 6,000 companies which are originating in more than 90 countries. This zone is at a significant and strategic location and helps link the east with the west.
3.Sharjah Media City (SHAMS)
In 2017, The Sharjah Media City or SHAMS was created to expand the growth of the media industry and to provide a platform to the creative minds of the world. This free zone not only caters to creative companies but also offers various benefits for businesses in other industries.
4.Sharjah Publishing City Free Zone (SPC FZ)
This free zone is one of its kind and is the first free zone devoted to publishing. SPCFZ is managed by Sharjah Book Authority (SBA) and covers a span of almost 400,000 sq. Meters.
5.USA Regional Trade Centre (USA RTC)
USARTC is a free zone that is created to better the cultural and trade relationships between the USA and the UAE. This USA Regional Trade Centre aims at becoming one of the fastest growing free zones in the UAE.
For more details on the various free zones, please read our blog Free Zones in Sharjah.
Benefits of Setting up a Company in Sharjah Free Zone
The various benefits of setting up a company in Sharjah is the main reason which attracts entrepreneurs from all over the world. Some of the key benefits of setting up a company in this zone are:
1. A company set up in the free zone will not have to pay any tax to the government. This includes income tax, withholding tax, corporate tax, import/export or any capital gains.
Sharjah produces 48% of the total industrial output of UAE due to which Sharjah is ranked among the top 10 cities for conducting business in the Gulf region. The free zones in Sharjah provide many benefits which attract a prospective businessperson to set up one's company in Sharjah.
2. The strategic geographical location of Sharjah makes it a perfect place for setting up a company. It also possesses state-of-the-art infrastructure making Sharjah an ideal location for providing services such as production and distribution.
3. There are many extra incentives offered by Free Zones of Sharjah, such as the following:
- Exemption from ALL taxes and duties
- 100% foreign ownership and complete repatriation of capital
- State-of-the-art infrastructure
4. The companies which have been incorporated in Sharjah are benefitted by various grants and subsidies from the government. The government pays for about 70% of the cost of the consumption of electricity and water in subsidies.
5. UAE has 66 double tax treaties with various other countries and the companies' set up in the emirate of Sharjah will benefit from the agreement. These treaties play a significant role in lessening the taxes incurred by an individual.
Setting up a company in the free zones can be very beneficial for a company, but in some instances, the process may become a little hectic or the owner/management of the company may not be able to provide the proper attention to the company incorporation process. In such situations, the administration should take the help of a management consultancy which will take care of all the process and will ensure that no mistakes are made during the incorporation process.
Commitbiz will assist you during the incorporation process of a company in the free zone and will also be keeping track of the VAT and tax filing of the company. With Commitbiz by your side, you do not need to worry about anything. For more details, contact us – we will be glad to help.