Sharjah, the third largest emirate in the UAE is gaining rapid traction among investors and entrepreneurs. Also recognised as the cultural capital of the UAE, it contributes over 7.5% to the country’s GDP. Owing to its strategic proximity to seaports, international airports and logistics hubs, many entrepreneurs are seeking company setup in Sharjah free zone and avail a plethora of benefits.
Many international entrepreneurs who dream of setting up their business in the UAE opt for Sharjah free zone. It has business-friendly policies, world-class infrastructure and investor-friendly tax regimes. This helps entrepreneurs looking for seamless company formation in Sharjah also get the advantage of joining the league of technologically advanced market players, thriving to be a forerunner in the innovative ecosystem.
Benefits of company setup in Sharjah free zone
Being one of the most sought after business destinations for foreign investors and business owners, Sharjah offers a myriad of benefits for accelerated business growth. Let’s explore the advantages of starting a business in Sharjah free zone:
- 100% Foreign Ownership: Unlike other jurisdictions, Sharjah free zone allows business owners to enjoy 100% foreign ownership of their companies. International investors and owners now no longer have to find a local sponsor or Emirati. Instead, they can have full control over their business.
- Repatriation of Profits: UAE-free zones are tax-free, hence, entrepreneurs can enjoy 100% repatriation of their profits and capital. Similarly, the Sharjah free zone ensures that the earnings of business owners can be reinvested into their business with restrictions.
- Other incentives: Businesses involved in the export, import or distribution of products are exempted from paying heavy customs duties. This opens growth avenues for entrepreneurs, making Sharjah an ideal base for trading companies.
- World-Class Infrastructure: Sharjah free zones are equipped with best in class infrastructure and amenities. Business owners enjoy advanced communication networks, swanky office spaces, and other facilities like expansive warehouses and storage units.
- Proximity to Key Markets: Sharjah is located strategically that makes it accessible to key international markets in the Middle East, Africa, and Asia. In addition, it has an extensive logistics network that allows businesses to leverage smoother transportation and hassle-free distribution of products to any local state or country.
Tax Benefits of company formation in Sharjah
Every emirate in the UAE has its own set of distinctive advantages that makes it desirable for business owners. However, Sharjah free zone is emerging as a top priority for entrepreneurs due to its multitude of tax incentives. It is one of the foremost and key attractive features for businesses planning to establish their presence in the country.
Here are some of the key tax benefits:
- No Corporate Tax: Companies operating within Sharjah free zone territory enjoy full exemption from corporate tax. This significantly reduces the operating cost of business, making it an appealing choice for entrepreneurs looking to maximize profits.
- No Personal Income Tax: Sharjah, like other jurisdictions of the UAE, impose zero percent personal income tax. This makes business owners and employees take home their full salary without any deductions for income tax, providing a more lucrative environment for both entrepreneurs and workers.
- No Custom Duty: Businesses operating in Sharjah free zone are exempted from paying custom duties. They do not have to pay duties on the import or export of goods from free zones which ultimately reduces the financial burden on businesses.
- No Currency Exchange Restrictions: Sharjah free zones have negligible restrictions on currency exchange. This enhances financial flexibility for international companies in transferring funds, supporting their operations.
- No stamp duty: Sharjah free zone companies are exempted from stamp duty charges. They do not have to pay any taxes on documents that they sign.
- No tax on capital gains: Businesses operating in Sharjah free zone are exempted from capital gains tax. They do not have to pay any taxes on the profits generated while selling an asset.
Conclusion
Setting up a business in Sharjah free zone can be highly beneficial for entrepreneurs. They can position their businesses for global expansion by taking the advantages of business friendly tax regimes.
If Sharjah is your top choice for company setup, get in touch with SRTIP Accelerator, a leading free zone business setup company offering holistic solutions including company setup as well as obtaining a business license in Sharjah. Our team of experts can help you navigate through the process and gain you incredible tax advantages for your business.
For expert support, contact us today at +971 50 795 6303 or email enquiry@srtipacc.ae to get started.
