Free Zone Tax

Hamriyah Free Zone Company Setup 2026: Cost, License Types, and Process

Modern business office skyline representing company setup and free zone business formation in the UAE

12 min read

Published: 23 August 2026

Quick Answer

Hamriyah Free Zone (HFZA), established in 1995 under the Government of Sharjah, is one of the UAE’s oldest and largest industrial free zones. It offers 100% foreign ownership, full repatriation of capital and profits, no personal income tax, and a choice of Trading, Service, Industrial, and E-commerce licenses. Setup involves choosing a license type and legal structure (FZE, FZC, or branch), reserving a trade name, submitting KYC documents, signing a lease (office, warehouse, or land), and paying license and registration fees to HFZA. Most straightforward applications are approved within 3 to 10 working days once documents are complete. License and registration fees vary by activity and facility type, so always confirm the exact current fee schedule directly with HFZA or a licensed formation agent before budgeting.

What Is Hamriyah Free Zone?

Hamriyah Free Zone Authority (HFZA) sits on the Arabian Gulf coast in Sharjah, split across two zones: Hamriyah (with a deep-water port) and Sharjah Airport International Free Zone’s sister industrial belt further inland. HFZA was built to attract heavy industry, manufacturing, trading, and logistics businesses that need direct port access, industrial land, and warehousing at a lower cost base than Dubai’s free zones.

Unlike free zones built primarily for consultancies and small trading offices, Hamriyah has a strong industrial identity: steel, aluminum, petrochemicals, building materials, and general manufacturing sit alongside trading, logistics, and service companies. That mix matters when comparing it to other UAE free zones, because HFZA’s real advantage is industrial land and warehouse space at Sharjah pricing, not a virtual-office-first model.

License Types in Hamriyah Free Zone

HFZA issues four main license categories:

Trading License, import, export, distribution, and general trading of specified goods. Multiple product lines can usually be added under one trading license, subject to HFZA approval.
Service License, consultancy, professional, and service-based activities that do not involve physical goods (business consulting, management services, technical services, and similar).
Industrial License, manufacturing, processing, assembly, and industrial activity, typically paired with a warehouse or industrial land lease.
E-commerce License, online trading and digital commerce activities, increasingly requested since HFZA expanded its digital licensing options.

Legal Structures Available

FZE (Free Zone Establishment), single shareholder, either an individual or a corporate entity.
FZC (Free Zone Company), two or more shareholders, individuals or corporate entities, or a mix.
Branch of a foreign or UAE company, no separate share capital requirement; operates as an extension of the parent company.

Step-by-Step Setup Process

Choose the activity and license type. HFZA maintains an approved activity list; the activity chosen determines whether a Trading, Service, Industrial, or E-commerce license applies.
Reserve a trade name. Submit 2 to 3 proposed names for HFZA approval, following UAE naming conventions (no religious, political, or offensive references; must reflect the licensed activity where required).
Select the facility type. Options include a flexi-desk, office, warehouse, or industrial land plot, depending on the activity. Industrial and trading licenses that involve storage typically require a warehouse lease.
Submit KYC and application documents. Passport copies of shareholders and managers, passport-size photographs, a completed application form, a business plan for certain activities, and, for corporate shareholders, attested parent company documents (Certificate of Incorporation, Memorandum of Association, Board Resolution).
Sign the lease agreement. The facility lease (office, warehouse, or land) is signed alongside the license application, since HFZA requires a registered physical presence.
Pay license and registration fees. Fees are paid to HFZA once documents are approved; the license is issued after payment clears.
Apply for the Establishment Card and visas. Once the license is issued, the company can apply for an Establishment Card with the General Directorate of Residency and Foreigners Affairs (GDRFA) Sharjah and begin employee/investor visa processing.
Open a corporate bank account. With the trade license, Memorandum of Association, and Establishment Card in hand, the company can approach UAE banks for a corporate account. Bank due diligence timelines vary by bank and business activity.

Indicative Cost Overview

Free zone fees change periodically and vary by activity, facility type, and number of visas requested. The figures below are indicative 2026 ranges for budgeting purposes only, always confirm the exact, current fee schedule with HFZA or a licensed formation consultant before committing.

Cost Item	Indicative 2026 Range (AED)	Notes
Trading/Service license fee	10,000 – 18,000	Varies by number of activities and facility type
Industrial license fee	15,000 – 30,000+	Depends on land/warehouse size and activity
Flexi-desk facility	6,000 – 10,000/year	Entry-level option for service/trading licenses
Warehouse lease	25,000 – 100,000+/year	Depends on size and location within the zone
Establishment card	1,000 – 2,000	One-time, renewable
Investor/employee visa (per visa)	3,500 – 6,000	Includes entry permit, status change, stamping; medical and Emirates ID billed separately
Medical test + Emirates ID	700 – 1,100 per person	Standard UAE-wide charges, not HFZA-specific

These ranges are for planning purposes. Actual invoices from HFZA will reflect the specific activity, facility, and visa quota selected.

Visa Allocation

Visa quotas in Hamriyah Free Zone are generally tied to the facility size: a flexi-desk typically supports a limited number of visas, while a full office, warehouse, or land lease supports a higher quota. Businesses that need more employee visas than their current facility allows can usually upgrade to a larger office or warehouse to raise the quota, subject to HFZA approval.

Hamriyah Free Zone vs Other UAE Free Zones

Free Zone	Best Suited For	Strength
Hamriyah (HFZA)	Industrial, manufacturing, trading, port-linked logistics	Deep-water port access, industrial land, Sharjah-level pricing
IFZA	Trading, consultancy, e-commerce	Fast setup, low-cost packages, Dubai address
RAKEZ	SMEs, industrial, trading	Ras Al Khaimah pricing, flexible facility options
Ajman Free Zone	Startups, small trading, e-commerce	Low-cost entry packages
DMCC	Commodities trading, finance, crypto	Global reputation, JLT business hub
JAFZA	Large-scale logistics, manufacturing	Jebel Ali Port access, established industrial base
Meydan Free Zone	Trading, digital businesses	Dubai mainland-adjacent, quick digital licensing
Sharjah Publishing City	Publishing, media, content businesses	Sector-specific, low-cost
ADGM	Financial services, holding companies	Common-law jurisdiction, Abu Dhabi Global Market status

Hamriyah’s main differentiator against Dubai-based zones like IFZA, DMCC, or Meydan is physical industrial capacity: warehouse and land availability at Sharjah rates. Businesses that need only a virtual office or a Dubai-facing address are usually better served by a Dubai free zone; businesses that need port access, storage, or manufacturing space benefit from Hamriyah’s industrial footprint.

Corporate Tax Treatment for Hamriyah Free Zone Companies

Hamriyah Free Zone companies fall under UAE Federal Corporate Tax (Federal Decree-Law No. 47 of 2023), the same as every other UAE free zone. A Hamriyah company can qualify as a Qualifying Free Zone Person (QFZP) and pay 0% Corporate Tax on Qualifying Income if it meets the conditions in Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023: adequate substance in the UAE, income falling within the defined Qualifying Activities list, compliance with transfer pricing rules, and maintaining audited financial statements.

Income that does not meet the Qualifying Income conditions, or income from Excluded Activities, is taxed at the standard 9% rate above the AED 375,000 threshold. Every free zone company, whether or not it elects for QFZP status, must still register for Corporate Tax with the Federal Tax Authority (FTA) and file an annual return. For the full registration and filing mechanics, see our guides on Corporate Tax registration in the UAE and QFZP qualifying income.

VAT Registration

Standard UAE VAT rules under Federal Decree-Law No. 8 of 2017 apply to Hamriyah Free Zone companies. VAT registration is mandatory once taxable supplies and imports exceed AED 375,000 in the preceding 12 months, and voluntary above AED 187,500. Hamriyah is not a Designated Zone for VAT purposes in the way some specific fenced zones are, so most standard trading and service activity is treated the same as mainland VAT treatment, always confirm the VAT position for a specific activity with a qualified advisor before registering.

Required Documents Checklist

Passport copies of all shareholders and the appointed manager
Passport-size photographs (white background)
Completed HFZA application form
No Objection Certificate (NOC) if any shareholder is a UAE resident sponsored elsewhere
For corporate shareholders: attested Certificate of Incorporation, Memorandum and Articles of Association, and a Board Resolution authorizing the Hamriyah entity
Business plan (for certain regulated or industrial activities)
Proof of address for shareholders (utility bill or bank statement, where requested)

Why Businesses Choose Hamriyah Free Zone

Deep-water port access. Hamriyah Port allows direct shipping and cargo handling, which cuts logistics costs for trading and industrial companies compared to zones without their own port.
Industrial land at Sharjah pricing. Warehouse and land lease rates in Hamriyah are generally lower than comparable facilities in Dubai free zones, which matters for manufacturing and storage-heavy businesses.
No customs duty within the zone. Goods moved within the free zone, or re-exported, are not subject to UAE customs duty, though duty can apply when goods move into the UAE mainland.
Flexible facility options. From a flexi-desk for a small trading office to multi-acre industrial plots, HFZA covers a wider facility range than most single-purpose free zones.
Established regulatory track record. Operating since 1995, HFZA has a long history of licensing industrial and trading companies, which gives banks and partners more confidence than a newer free zone.

License Renewal and Ongoing Compliance

Hamriyah Free Zone licenses are renewed annually. Renewal typically requires an updated lease agreement (if the facility term has changed), payment of the annual license fee, and confirmation that visa quotas and Establishment Card details are current. Companies with Corporate Tax and VAT obligations must also keep their FTA registration, annual return filing, and (where applicable) audited financial statements up to date independently of the HFZA renewal cycle, HFZA renewal does not substitute for FTA compliance.

Missing a license renewal deadline can trigger late fees and, if left unresolved, can affect the company’s ability to sponsor visas or renew Establishment Cards. Setting a renewal reminder 60 to 90 days before the license expiry date is standard practice among formation agents managing multiple entities.

Common Mistakes to Avoid When Setting Up in Hamriyah

Choosing the wrong license category for the actual activity. An activity that involves storage or light processing may need an Industrial license rather than a Trading license, even if it looks similar to standard trading on the surface. Getting this wrong can cause delays or require a license amendment later.
Underestimating visa quota needs. Selecting a flexi-desk when the business plan already anticipates hiring 5 or more staff within the first year often means an early, avoidable facility upgrade.
Not confirming QFZP eligibility before invoicing. Businesses that assume the 0% Corporate Tax rate applies automatically, without checking the Qualifying Income and substance conditions, risk under-provisioning for tax if their income mix does not qualify.
Delaying corporate bank account applications. Bank account opening can take several weeks depending on the activity and the bank’s due diligence process; starting this in parallel with the license application, rather than after, avoids unnecessary delays before the company can start invoicing.

Frequently Asked Questions

1. How long does it take to set up a company in Hamriyah Free Zone?
Most straightforward Trading or Service license applications with complete documents are approved within 3 to 10 working days. Industrial licenses requiring land or warehouse allocation can take longer due to facility inspection and lease finalization.

2. Can a foreigner own 100% of a Hamriyah Free Zone company?
Yes. All UAE free zones, including Hamriyah, allow 100% foreign ownership with no local sponsor requirement.

3. Does Hamriyah Free Zone require a physical office?
Yes, a registered physical presence is required. Options range from a flexi-desk to a full office, warehouse, or industrial land lease, depending on the license type and activity.

4. What is the difference between an FZE and an FZC in Hamriyah?
An FZE has a single shareholder, while an FZC has two or more shareholders. Both structures offer limited liability and 100% foreign ownership.

5. Do Hamriyah Free Zone companies pay UAE Corporate Tax?
Yes, all UAE free zone companies fall under Federal Corporate Tax. A Hamriyah company can qualify for the 0% Qualifying Free Zone Person rate on Qualifying Income if it meets the conditions in Cabinet Decision No. 100 of 2023, but it must still register with the FTA and file annual returns regardless of the rate that applies.

6. Can a Hamriyah Free Zone company trade with the UAE mainland?
A free zone company can sell to the mainland, but mainland sales of goods are generally treated as an import into the UAE and may involve customs duty and a mainland distributor arrangement, depending on the activity. Selling qualifying services directly can affect QFZP eligibility, so this should be checked before structuring mainland sales.

7. How many visas can a Hamriyah Free Zone company sponsor?
Visa quota depends on the facility leased. A flexi-desk supports a limited number of visas, while a larger office, warehouse, or land lease supports more. Businesses can upgrade their facility to increase their quota.

8. Is Hamriyah Free Zone good for a small trading or consultancy business?
It can be, particularly for businesses that want Sharjah-level facility pricing, but businesses focused purely on a Dubai-facing consultancy or e-commerce brand may find a Dubai zone like IFZA or Meydan more convenient for client-facing operations.

9. What industries is Hamriyah Free Zone best known for?
Steel and metals, aluminum, petrochemicals, building materials, general manufacturing, trading, and port-linked logistics, alongside a growing base of service and e-commerce companies.

10. Can an existing mainland or free zone company relocate its license to Hamriyah?
Yes, HFZA accepts license transfers and relocations from other jurisdictions, subject to the standard application, document, and approval process for the target activity.

How Qaspro Global Can Help

Qaspro Global assists with Hamriyah Free Zone company formation end to end: activity classification, license type selection, document preparation, facility leasing coordination with HFZA, visa processing, corporate bank account introductions, and ongoing Corporate Tax and VAT compliance once the company is operational. Reach out on WhatsApp at +971551539679 to get a same-day cost breakdown for your specific activity.