Business Setup in Sharjah Free Zone

Sharjah, the third-largest emirate of the UAE, Sharjah Free Zones provide cost-effective solutions for investors and entrepreneurs looking to start a business in a UAE freezone. With its strategic location, affordable licensing packages, and investor-friendly policies, the Sharjah Free Zones offer a gateway to both Middle Eastern and international markets.

Whether you are starting a small trading company, a service firm, or a light manufacturing unit, Sharjah’s free zones provide diverse opportunities with minimal bureaucracy. Sharjah's free zones are designed to serve as gateways to both the local and international markets.

With a forward-thinking government and a strong focus on innovation, the emirate provides a supportive environment for businesses of all sizes, from tech startups to large industrial operations.

Our experts can guide you through the entire Sharjah free zone business setup process, from choosing the right free zone to obtaining your license.

Choosing the right location is the first step toward business success. Sharjah free zones offer a compelling value proposition that stands out in the UAE market.

The benefits of a Sharjah free zone company formation are numerous and attract investors from around the world:

• 100% Foreign Ownership: Unlike many Mainland Business Setups, a free zone company allows you to have complete ownership of your business without needing a local sponsor.
• 100% Profit and Capital Repatriation: You can freely take all your profits and capital out of the country without any restrictions or currency controls.
• No Corporate or Personal Income Tax: Businesses in free zones that meet the criteria for a "Qualifying Free Zone Person" can benefit from a 0% corporate tax rate on their qualifying income of AED 375,000, and 9% on profits exceeding that threshold. The criteria include:

• • Adequate economic substance (staff, office, operations)
  • Earning “qualifying income”, such as exports or inter–free zone services
  • Compliance with arm's-length pricing, audited financials, and transfer pricing documentation
  • Not electing the standard tax regime
  • Staying within the “de minimis” limit on non-qualifying revenue (max AED 5 million or 5%)

There is no personal income tax.

• No Import and Export Duties: This is a major advantage for trading, import, and export companies, as it significantly reduces operational costs.
• Strategic Location and Global Connectivity: Sharjah's central location between major ports and airports makes it a hub for logistics and trade. With close proximity to Sharjah International Airport (SAIF) and two major deep-sea ports (Hamriyah Port and Khorfakkan Port), businesses can easily connect with markets across the Middle East, Asia, and Africa.
• Cost-Effective Solutions and Support: Sharjah is known for offering some of the most competitive Business Setup and operational costs in the UAE. From affordable license packages to flexible office solutions, free zones provide cost-effective entry points for new businesses and startups.

Note: From January 1, 2025, large multinational enterprises with global revenues above €750 million must pay a minimum effective tax of 15% (OECD Pillar Two compliance). This could override free zone benefits for such entities.

Unlike a Sharjah Mainland license, which allows businesses to operate across the UAE, a Sharjah Free Zone license provides simplified setup and 100% foreign ownership. Learn more about Sharjah Mainland License

Sharjah is home to several distinct free zones, each with its own specializations, advantages, and facilities. Choosing the right free zone depends on your business activity, budget, and long-term goals. Before starting, review our list of free zones in Sharjah to find the one that best aligns with your industry and business goals

• SAIF Zone (Sharjah Airport International Free Zone)

One of the oldest and most established free zones in the region, SAIF Zone is a hub for industrial, commercial, and logistics companies. Located next to Sharjah International Airport, it offers a strategic advantage for businesses involved in import, export, and trading. SAIF Zone is known for its world-class infrastructure, warehouses, and extensive office facilities.

• Hamriyah Free Zone

As one of the largest industrial free zones in the UAE, Hamriyah Free Zone is ideal for companies in the manufacturing, oil and gas, maritime, and heavy industry sectors. It provides businesses with access to deepwater ports, ready-to-use land for development, and a wide range of industrial facilities.

• Shams (Sharjah Media City Free Zone)

Shams is a modern and rapidly growing free zone focused on media, creative industries, and technology. It is a highly attractive option for freelancers, consultants, and startups due to its competitive pricing and simplified company formation process. Shams offers flexible desk options and a wide range of media-related business activities.

• SPC (Sharjah Publishing City Free Zone)

SPC is the world's first free zone dedicated to the publishing and creative industries. It caters to a wide range of activities, including printing, publishing, distribution, and e-commerce. SPC is a great choice for businesses looking for a simplified setup process and access to a niche community.

SPC caters to publishing and creative industries. Explore the advantages of doing a business in SPC Free Zone to see why it’s ideal for creative entrepreneurs.

• SRTIP (Sharjah Research, Technology, and Innovation Park)

SRTIP is a free zone focused on research, development, and innovation. It provides a supportive ecosystem for tech startups, researchers, and innovators. Located near major universities, SRTIP offers state-of-the-art facilities and a collaborative environment for R&D-intensive businesses.

While Sharjah Free Zones offer a cost-effective and strategic choice, the UAE has numerous other free zones tailored to different industries, business sizes, and investment goals. Our experts can guide you on the setup process in any of these zones:

• Business Setup in Dubai Freezone – Ideal for trading, IT, and service companies looking for Dubai’s global market access.

• Business Setup in IFZA – Flexible free zone for startups, e-commerce, and SMEs with quick licensing procedures.

• Business Setup in Abu Dhabi Freezone – Perfect for industrial, commercial, and service companies targeting the capital’s markets.

• Business Setup in Ras Al Khaimah Freezone – Cost-effective setup with industrial, trading, and warehousing facilities.

• Business Setup in Ajman Freezone – Ideal for startups and SMEs with simple licensing and low operational costs.

• Business Setup in Dubai Media City Free Zone – Tailored for media, marketing, IT, and creative companies.

• Business Setup in Sharjah Airport International Freezone – Best suited for industrial, trading, and logistics businesses.

Which Free Zone is Right for Your Business?

Finding the perfect Free Zone in Sharjah, UAE, often depends on multiple factors:

• Activity: Your business activity is the most important factor. If you are in manufacturing, Hamriyah or the SAIF Zone are excellent choices. For media, IT, or creative services, Shams or SPC would be a better fit.
• Cost: Some free zones, like Shams and SPC, are known for their highly competitive entry-level packages, which are perfect for startups and freelancers. More industrial-focused free zones may have higher costs due to larger facility requirements.
• Facility: Decide about what you need: a simple flexi-desk for a freelance visa, a co-working space, a dedicated office, or a large warehouse and plot of land.

Sharjah Free Zones offer a wide range of license types to suit almost any business activity.

• Commercial License: This license is for companies that buy and sell goods. It covers activities like trading, import, export, and distribution of a specific range of products.

• Professional License: A professional license is for businesses that offer services, rather than products. This includes consultants, IT professionals, marketing agencies, creative professionals, and other service providers.

• Industrial License: This license is required for businesses involved in the manufacturing, processing, or assembly of goods. It is typically sought by companies in the Hamriyah Free Zone or the SAIF Zone.

• E-commerce License: With the rise of online business, many free zones, including Shams and SPC, offer dedicated e-commerce licenses for businesses that sell products or services online.

• General Trading License: A General Trading license allows you to trade in a very wide variety of products, with a few restrictions. This is a flexible option for companies that plan to deal with a diverse range of goods.

Depending on your business activity, you will need a specific Sharjah free zone license, which determines your permitted operations to operate legally.

The documents required for a Business Setup in Sharjah are minimal and vary slightly depending on your chosen free zone and legal structure.

• Passport Copies: Clear, color copies of the passports of all shareholders and the appointed manager.
• Visa Copies: If you are a current UAE resident, a copy of your visa page and Emirates ID is required.
• Application Forms: Completed and signed application forms provided by the respective free zone authority.
• Business Plan: A brief business plan or project summary outlining your activities and goals.
• No Objection Certificate (NOC): A NOC from your current sponsor is required if you are a UAE resident and will be a shareholder/manager.

For Corporate Shareholders (if the company is owned by another company):

• Certificate of Incorporation and Memorandum of Association (MOA) of the parent company.
• Board Resolution approving the establishment of the free zone company.
• A Power of Attorney for the appointed manager.
• All documents must be attested and legalized.

The cost of setting up a business in Sharjah is a key factor for many entrepreneurs. While prices vary by free zone, license type, and facility, here is a general overview:

• License Packages: The Sharjah Free Zone license cost starts from AED 6,000, making it one of the most affordable options in the UAE. Compare with the cheapest free zone in UAE to find the best value for your business.
• Visa Costs: Each visa slot will incur additional fees, including a visa application fee, medical test, and Emirates ID. These can range from AED 3,000 to AED 5,000 per visa.
• Office/Facility Costs: A dedicated office space or warehouse will significantly increase the total cost, depending on its size and location.

It is crucial to get a full, transparent quote that includes all government and administrative fees to avoid any surprises.

To compare setup pricing across different Sharjah free zones, explore our updated guide on Sharjah Free Zone License Cost

The process for a company formation in a Sharjah free zone is designed to be fast and efficient. Here are the steps involved:

Step 1: Define Your Business Activity and Legal Structure

This is the most critical first step. You must decide on your exact business activities. Based on this, you will choose a legal structure:

• Free Zone Establishment (FZE): For a single shareholder company.
• Free Zone Company (FZC): For a company with two or more shareholders.
• Branch Office: For a local or foreign company that wants to open a branch in the free zone.

Step 2: Choose Your Business Name

Select a unique name for your company that complies with the free zone's naming conventions. The name should not be offensive and should not be similar to any existing companies.

Step 3: Select Your Office or Facility Type

Choose the facility that best suits your needs:

• Flexi-Desk/Co-working Space: An affordable option for a startup or freelancer that requires minimal physical presence.
• Dedicated Office: A private office for a growing team.
• Warehouses/Industrial Plots: For manufacturing, logistics, and trading companies.

Step 4: Prepare and Submit Required Documents

Gather all the documents mentioned earlier and submit them to the free zone authority. This is often the most time-consuming part, and ensuring all documents are correct and complete is essential.

Step 5: Obtain Initial Approval

The free zone authority will review your application and documents. Once everything is in order, you will receive an initial approval to proceed.

Step 6: Pay Fees and Get Your Freezone Business Setup License in Sharjah

After approval, you will make the necessary payments for the license and any facility leases. The free zone will then issue your business license and Certificate of Incorporation.

Step 7: Open Your Corporate Bank Account

With your new company documents, you can now open a corporate bank account in a local or international bank in the UAE.

Step 8: Visa Processing for Yourself and Your Employees

Once your company is licensed, you can apply for entry permits and residence visas for yourself, your employees, and their dependents.

Ready to launch your business in Sharjah Free Zone?

Contact Safe Ledger now and let our experts guide you through every step, from choosing the right setup to securing your license.

A successful setup goes beyond just getting a license. These are some of the long-term considerations you need to be aware of.

• Visa Quota and Employee Visas

The number of visas you can apply for is often tied to your chosen facility and license package. Larger offices or more expensive packages generally come with more visa slots.

• Corporate Tax and VAT Registration in UAE

UAE introduced a 9% Corporate Tax in 2023. However, a "Qualifying Free Zone Person" can benefit from a 0% tax rate on their "Qualifying Income." It's important to understand the specific rules and ensure you meet the requirements. You must also register for VAT if your annual turnover exceeds AED 375,000.

• Annual Renewals and Compliance

Your freezone business setup license in Sharjah must be renewed annually. The free zone authority will notify you of the renewal deadlines. Timely renewal and compliance with all free zone regulations are essential to keep your license active.

• Accounting and Auditing Requirements

UAE law and free zone regulations require all companies to maintain proper books of accounts. Some free zones also require an annual audit report to be submitted at the time of renewal.

• Bank Account Opening Challenges and Solutions

Opening a corporate bank account can sometimes be challenging, with banks requiring extensive documentation and background checks. Working with a Business Setup partner can streamline this process by guiding you through the requirements and introducing you to the right banking contacts.

While Sharjah Free Zones offer a cost-effective and strategic choice, each emirate in the UAE presents unique advantages tailored to different industries and business needs. Understanding these distinctions can help you select the optimal location for your business. Here's a brief overview:

• Business Setup in Dubai: Dubai is a global business hub with diverse free zones catering to sectors like technology, media, trade, and logistics. Its strategic infrastructure and innovative business environment make it ideal for startups and multinational companies alike.

• Business Setup in Abu Dhabi: Abu Dhabi focuses on economic diversification beyond oil, providing streamlined business processes, investor-friendly regulations, and specialized free zones for energy, finance, and industrial sectors.

• Business Setup in Sharjah: Sharjah offers cost-effective free zone options such as SAIF Zone, Hamriyah, Shams, and SPC, making it ideal for trading, media, light industrial, and creative businesses. Its strategic location near major ports ensures easy access to regional and international markets.

• Business Setup in Ajman: Ajman provides affordable and fast business setup solutions, especially suitable for SMEs, freelancers, and startups. Ajman Free Zone offers flexible licensing packages and easy access to the Northern Emirates.

• Business Setup in Fujairah: Fujairah is ideal for industrial, logistics, and trading companies due to its deep-sea port and industrial zones. It offers competitive costs, fast approvals, and a supportive regulatory environment for investors looking to tap into Eastern UAE and regional markets.

Each emirate has unique regulations, business incentives, and strategic advantages. Our experts at Safe Ledger can guide you through the setup process in any of these emirates, ensuring a smooth and compliant business launch.

Ready to Start Your Company in Sharjah? Starting a company in Sharjah becomes much easier with expert guidance. If you want hassle-free company setup — including approvals, licensing, facilities, banking, and visas — our specialists are here to support every step. Explore how we can help you launch successfully: Company Formation in Sharjah