The UAE has long been a hub for business and investment, attracting entrepreneurs from all over the world. Among its many business-friendly environments, Sharjah stands out for its strategic location, cost-effective solutions, and investor-friendly policies. One of the key factors entrepreneurs consider when setting up a business in Sharjah is the cost of obtaining a free zone license. In this blog, we will break down the Sharjah free zone license cost, explore different free zones, and highlight the benefits of starting your business here.
Why Choose Sharjah for Your Business?
Sharjah is one of the most business-friendly emirates in the UAE, offering a range of free zones tailored to various industries. Unlike other emirates, Sharjah provides a cost-effective alternative for businesses looking to establish themselves without compromising on facilities, infrastructure, or regulatory support. Key advantages include:
- Proximity to Dubai: Businesses benefit from Sharjah’s connectivity to major commercial hubs.
- Lower Costs: Compared to Dubai and Abu Dhabi, Sharjah’s business setup costs are more affordable.
- Diverse Free Zones: There are multiple free zones catering to different industries such as trading, media, manufacturing, and services.
- Tax-Free Benefits: No personal or corporate taxes, and 100% repatriation of profits.
- Simplified Company Formation: Setting up a business is straightforward, with minimal bureaucratic hurdles.
Popular Free Zones in Sharjah
Sharjah hosts multiple free zones that cater to various industries. Some of the most notable ones include:
- Sharjah Airport International Free Zone (SAIF Zone)
- Best suited for: Trading, logistics, manufacturing, and services.
- Advantages: Located near Sharjah International Airport, offering easy global connectivity.
- License Costs: Starting from approximately AED 11,000 per year.
- Hamriyah Free Zone (HFZ)
- Best suited for: Industrial, manufacturing, and trading businesses.
- Advantages: Large plots for warehouses, land leasing options, and access to a deep-water port.
- License Costs: Starting from AED 8,500 per year.
- Sharjah Media City Free Zone (Shams)
- Best suited for: Media, marketing, and creative industries.
- Advantages: Digital-friendly setup, no requirement for a physical office.
- License Costs: Starting from AED 5,750 per year.
- Sharjah Publishing City (SPC Free Zone)
- Best suited for: Publishing, education, and digital content businesses.
- Advantages: 100% foreign ownership, multi-year licenses available.
- License Costs: Starting from AED 6,500 per year.
Sharjah Free Zone License Cost Breakdown
The cost of obtaining a free zone license in Sharjah depends on several factors, including the type of business, the number of visas required, and office space requirements. Here’s a general breakdown:
- Business License Fees
- Commercial License: Required for trading businesses (costs range from AED 5,750 – AED 15,000 per year).
- Service License: Suitable for consultancy and professional services (costs range from AED 6,500 – AED 12,000 per year).
- Industrial License: Needed for manufacturing and industrial activities (costs start from AED 8,500 per year).
- Office Space & Facilities
- Virtual Office: Many free zones offer affordable virtual office solutions starting from AED 5,750.
- Shared Office Spaces: Costs range from AED 8,000 – AED 15,000 per year.
- Dedicated Office Spaces: Prices can go from AED 15,000 – AED 50,000, depending on size and location.
- Warehouses & Industrial Units: Cost depends on size, starting from AED 20,000 per year.
- Visa Costs
- A business owner or employees will require visas, which cost around AED 3,500 – AED 4,500 per visa.
- Some free zones offer packages that include visa quotas at discounted rates.
- Additional Costs
- Business setup fees: Some free zones charge processing fees ranging from AED 1,500 – AED 3,000.
- Sponsorship & PRO Services: If you require assistance with visas and business registration, expect to pay additional fees.
Choosing the Right Free Zone in Sharjah
When selecting a free zone, consider the following:
- Industry Type: Some free zones cater specifically to certain industries.
- Budget: Compare setup costs and ongoing expenses.
- Location: Choose a free zone close to your suppliers, clients, or transportation hubs.
- Office Space Needs: If you require a physical office or warehouse, factor in rental costs.
- Number of Visas Required: Some free zones have limits on visa quotas per license type.
How to Get Started with a Sharjah Free Zone License
Setting up a business in Sharjah’s free zones is straightforward. Here’s a step-by-step guide:
- Choose a Free Zone & Business Activity: Research and select the best free zone for your needs.
- Select Your License Type: Decide whether you need a commercial, service, or industrial license.
- Determine Office Space Requirements: Choose a virtual office, shared space, or dedicated office.
- Submit Application & Documents: Provide passport copies, business plans (if required), and payment of initial fees.
- Receive Your Business License: Once approved, you will receive your license and can start operations.
- Apply for Visas & Open a Bank Account: Complete visa formalities and open a corporate bank account.
Conclusion
Sharjah’s free zones offer an attractive opportunity for entrepreneurs and businesses looking for an affordable yet strategic base in the UAE. With competitive license costs, simplified business setup processes, and access to global markets, Sharjah remains a top choice for startups and SMEs. Whether you’re in trading, media, manufacturing, or services, there’s a free zone in Sharjah that can cater to your business needs.