Key Highlights

1. Your HFZA license can be issued in as little as one hour from the submission of complete documents.
2. At AED 11,000, HFZA offers one of the most accessible base license costs across UAE free zones, with 100% foreign ownership and no local sponsor requirement.
3. HFZA’s Industrial license lets you import raw materials and manufacture, assemble, package, and export finished products, all from a single free zone address with direct port access.
4. If your HFZA company fails even one of the seven QFZP conditions, your entire income becomes taxable at 9% for that year and the following four years.

If you want to set up your business in the Hamriyah free zone, you are in the right place. 

A basic HFZA license starts from AED 11,000, and HFZA can issue your license in as little as one hour from the submission of complete documents. That combination of a clear starting cost and a fast issuance process is what makes HFZA worth a serious look.

This guide gives you the full picture: license types, 2026 costs, legal structures, the 4-step setup process, required documents, corporate tax status, and answers to the questions entrepreneurs on Reddit and Google ask most. 

Keep reading the article to learn more. 

What Is the Hamriyah Free Zone and Who Is It For?

The Hamriyah Free Zone Authority (HFZA) is a Sharjah Government free zone entity established in 1995 under an Emiri Decree. If you’re a foreign investor or entrepreneur, you don’t need a UAE local partner here. You own 100% of your business from day one.

HFZA isn’t just a license address. Within the free zone, you’ll find offices, pre-built warehouses, land plots, port facilities, and staff accommodation, all available on a lease basis. 

You won’t need to go outside the zone for basic business support. HFZA has branches of leading banks, restaurants, a supermarket, a gymnasium, Emirates Post, currency exchange offices, and typing centers all on-site.

It’s suited for trading companies, manufacturers, logistics operators, e-commerce businesses, and professional service providers. If you already run a company abroad and want a UAE branch, HFZA supports branch and subsidiary registrations of both local and foreign companies directly.

What Are the 3 Types of Licenses in Hamriyah Free Zone?

HFZA officially offers three license categories: Commercial, Service, and Industrial. The Commercial license has three sub-types. Here’s what each one permits, using HFZA’s own definitions:

Your license covers activities listed in your contract specifically. If you need to add an activity that’s not on the standard list, HFZA can issue it on a subject-to-approval basis. 

The Service license scope is limited to what’s written in your contract. The Industrial license supports full manufacturing and export operations, which makes it relevant if you’re targeting Sharjah’s industrial corridor and want direct port access from day one.

What Legal Structures Can You Register in HFZA?

HFZA recognizes three legal structures for company registration. Here’s what each one means and which situation it fits:

You don’t need a local partner for any of these three structures. If you’re registering a branch or subsidiary, every parent company document must be notarized and attested to by the UAE Embassy in your country of origin.

How Much Does a Hamriyah Free Zone License Cost in 2026?

Your HFZA license starts from AED 11,000 (approximately USD 3,000). That’s the base license fee. 

Your total first-year investment will be higher once you add your facility lease, establishment card, visa costs, and other mandatory government charges.

Here’s every cost category you need to plan for:

• Base license fee: AED 11,000 (approximately USD 3,000)
• Facility lease, HBC or E-Office: HFZA offers workspace through its Hamriyah Business Centre (HBC) and E-Office packages. You can’t hold an HFZA license with an address outside the zone. Your business must be physically inside HFZA premises. Visit official sources directly to get current HBC and E-Office package pricing before you commit.
• Establishment card (E-Card): Required at the Investors Services Department stage, for both initial setup and annual renewal 
• E-channel account setup: Mandatory before you can process any visa applications, handled through HFZA’s Immigration Department Residence visa per employee: Processed through HFZA Immigration, with fees set by the Federal Authority for Identity, Citizenship, Customs and Port Security 
• Medical fitness test and Emirates ID: Required per visa applicant; fees governed by official authorities 
• Annual license renewal: Verify the current renewal fee directly with authorities before your renewal date
• VAT at 5%: May apply to certain HFZA service fees. UAE Federal Decrees-Laws No. 17 and 16 of 2025 introduced amendments to VAT and tax procedures effective January 2026.

Disclaimer: License fees, package costs, and visa charges are subject to change. Verify current pricing with official sources before submitting your application.

What Are the Key Advantages of a Hamriyah Free Zone License?

An HFZA license gives you a specific, verified set of benefits. Here’s exactly what you get:

• 100% foreign ownership: No local sponsor required for any HFZA structure 
• 0% corporate tax on qualifying income: HFZA is a designated and qualified free zone under UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022). If your company meets all Qualifying Free Zone Person (QFZP) conditions, your qualifying income is taxed at 0%. See the corporate tax note below.
• No import/export restrictions: HFZA confirms there are no restrictions on importing and exporting goods that are approved as per the terms of your license
• License issued in one hour: From submission of complete documentation 
• 100% repatriation of capital and profits: Confirmed by the UAE Government 
• Customs duty exemptions: Free zone businesses operating within HFZA benefit from UAE customs exemptions
• You can partner in other companies: Inside or outside the free zone 
• Branch and subsidiary registration available: Both local and foreign company branches permitted
• Full on-site infrastructure: Offices, warehouses, port facilities, and staff accommodation within HFZA
• On-site business services: Banks, Emirates Post, restaurants, gymnasiums, supermarkets, currency exchanges, typing centers
• Flexible workspace options: HBC and E-Office packages available for a cost-effective first year 

Corporate tax note: The 0% rate applies only to qualifying income and only if your company meets all seven QFZP conditions under Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 100 of 2023.

1. Be a Free Zone person, meaning incorporated, established, or registered in a Free Zone, including branches
2. Maintain adequate substance in a Free Zone
3. Derive qualifying income as defined by the Federal Tax Authority
4. Not have elected to be subject to the standard UAE corporate tax regime
5. Comply with all transfer pricing rules and documentation requirements
6. Keep non-qualifying revenue within the de minimis threshold, which is the lower of 5% of total revenue or AED 5 million, whichever is lower
7. Prepare audited financial statements in line with IFRS standards

If your company fails any one of these seven conditions, your entire income becomes subject to the standard 9% corporate tax rate for that year and the four subsequent years.

How Do You Set Up a Business in Hamriyah Free Zone? (4 Steps)

You can complete your entire HFZA setup through HFZA’s business experts within their premises. Here are the four official steps:

Step 1: Commercial Department

1. Choose your facility type: office, land, or warehouse
2. Submit your required documents

Step 2: Leasing, Licensing and Legal Affairs

1. HFZA issues your trade license and lease agreement
2. You receive your facility handover

Step 3: Investors Services Department

1. Apply for your security approval
2. Obtain your establishment card (E-Card)

Step 4: Immigration

1. Open your E-Channel account
2. Complete your visa application and medical fitness test
3. Collect your Emirates ID and receive your visa stamp

Your license can be issued in as little as one hour from the submission of complete documents. The UAE Government confirms that free zone license applications are reviewed and approved directly by the respective free zone authority within that authority’s timeline.

What Documents Are Required for HFZA Company Formation?

To set up your company at HFZA, you’ll need to prepare the right documents based on your chosen legal structure. Here’s the complete checklist:

If you’re registering a foreign company branch, every parent company document must be notarized and attested by the UAE Embassy in your country of origin. Your office must be inside HFZA premises. HFZA doesn’t issue licenses for off-site offices.

Frequently Asked Questions

Q1: What is the basic cost of a Hamriyah Free Zone license?

Your basic HFZA license fee starts from AED 11,000 (approximately USD 3,000). Your total first-year cost will be higher once you add your facility lease, E-Card, visa fees, medical fitness test, Emirates ID, and E-Channel setup.

Q2: How long does it take to set up a company in HFZA?

Your license can be issued in as little as one hour from submission of complete documentation. The full setup process, including E-Channel registration, visa applications, medical fitness tests, and Emirates ID, takes longer depending on how quickly you prepare and submit your documents at each stage.

Q3: Is a local partner required to open a company in Hamriyah Free Zone?

No. HFZA’s FAQ confirms that a local partner is not a prerequisite. You retain 100% ownership of your company regardless of your nationality.

Q4: Is there corporate or income tax for HFZA companies?

HFZA is a designated and qualified free zone under UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022), and HFZA confirms that businesses and their owners are exempt from corporate and income taxes on qualifying income. 

This applies only if your company meets all seven QFZP conditions under the law and Cabinet Decision No. 100 of 2023.

Q5: Can an HFZA company trade on the UAE mainland?

You can trade internationally and sell to other free zone businesses. To distribute products to customers on the UAE mainland, you’ll need to work through a UAE-registered local distributor. 

Federal Decree-Law No. 20 of 2025 on Commercial Companies, effective October 2025, also introduced re-domiciliation provisions that allow companies to transfer their registration from a free zone to the mainland, subject to authority approval and further regulatory guidance.

Q6: Can I open a branch or subsidiary in Hamriyah Free Zone?

Yes. HFZA permits branches of both local and foreign companies. All parent company documents must be notarized and attested to by the UAE Embassy in your country of origin.

Q7: Is it possible to have an HFZA license with an office outside the free zone?

No. HFZA confirms it does not provide this type of service. Every licensed entity must be physically located within HFZA premises.

Should You Set Up in Hamriyah Free Zone?

HFZA gives you a low-cost, fully government-backed entry into the UAE market. Your license starts from AED 11,000, you own 100% of your business, and your license can be issued in as little as one hour from the submission of complete documents. 

Add port access, on-site banking, accommodation, and complete infrastructure within a single zone, and it’s a genuinely practical option for trading, industrial, logistics, and service businesses.

Whether HFZA is the right fit for your specific activity type, visa requirements, and growth plans is a different question. Comparing it against other UAE free zones before you commit will save you both time and money.

After all, setting up in HFZA takes more than picking a license type. You need to match your business activity to the right license category, choose the correct legal structure (FZE, FZC, or branch), prepare and attest documents accurately, and plan your E-Channel and visa process before you can operate. 

JSB Incorporation, based at Regal Tower, Business Bay, Dubai, handles every one of these steps for entrepreneurs and SME owners across 24+ UAE jurisdictions, including the HFZA. 

Book your free consultation call today with the experts of JSB Incorporation to learn more.